> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hamilton.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Risks

> What can go wrong, what Hamilton does about it, and what risk is still left with you.

**Every way of holding a dollar carries risk, and USDh is no exception.** This page lists the risks of holding USDh, from most to least significant. For each one it says what Hamilton does about it, and what risk is still left with you after that.

> [!WARNING]
>
> **The short version.** USDh carries the risk of its issuer, its reserve partners and its code. It is not a bank deposit and is not insured. No independent firm has checked the reserves or audited the contract yet.

| # | Risk | What Hamilton does about it | What is still left with you |
| - | - | - | - |
| 1 | **The issuer.** USDh is a claim on its issuer, HDA. If HDA failed, holders would be unsecured creditors | The reserves are managed by a separate company, PRM, with its own balance sheet. They are bought and held, with no borrowing and no derivatives | The reserves are **not** held in trust for holders. You have no direct claim on PRM or the reserve assets. USDh is not insured |
| 2 | **No independent reserve check yet.** You rely on Hamilton's own figures for what backs USDh | Hamilton publishes its holdings in the app. Supply and contract activity are public on Ethereum. See [Verify on-chain](https://docs.hamilton.xyz/trust-and-transparency/check-us-yourself.md) | Until an independent firm reports, the reserve figures have not been checked by anyone outside Hamilton |
| 3 | **A bug in the code.** A flaw in the contract could cause a loss | The contract is small and built on widely used OpenZeppelin code. Every change waits 48 hours in public | **The contract has not been independently audited yet.** Any code can contain bugs |
| 4 | **The admin wallets.** Signers could make a mistake, or have their keys stolen | Powers are split across separate wallets that each need several signatures. Major changes wait 48 hours in public | Emergency powers act at once. If enough signers of one wallet were compromised, that wallet could pause or freeze. It still could not take a balance |
| 5 | **The market price.** USDh can trade below one dollar, especially in stressed markets | Mint Users can redeem with HDA at one dollar, which pulls the price back | Only Mint Users and approved routes redeem directly. Everyone else exits at the market price of the moment |
| 6 | **Partners.** Reserves, banking and conversions rely on outside firms | Hamilton works with named, established firms. See [Partners](https://docs.hamilton.xyz/trust-and-transparency/who-we-work-with.md) | If a partner failed, froze accounts or paid late, redemptions could slow down or the reserves could shrink |
| 7 | **Other stablecoins.** Part of the reserves is held in USDC and AUSD | Only established, fiat-backed stablecoins are held. One that loses its peg can be switched off at once | If one of them lost its peg, the part of the reserves held in it would lose value |
| 8 | **Redemption limits and delays.** You may not be able to redeem as much, or as fast, as you want | Every limit is published. See [Limits and fees](https://docs.hamilton.xyz/using-hamilton/limits-and-timing.md) | By default a Mint User can redeem half its balance per 7-day window, and HDA can delay a redemption by up to 5 business days |
| 9 | **Freezes and pauses.** An address can be frozen, or the whole system paused, for sanctions or an emergency | Freezes and pauses can only stop activity. The contract cannot take or move a balance | While frozen or paused, the USDh cannot move |
| 10 | **Laws.** Rules on stablecoins are changing fast | USDh is not offered in the United States or in sanctioned countries | New rules could limit where or how USDh can be used, or force changes to it |
| 11 | **Ethereum.** USDh runs on Ethereum | Nothing Hamilton controls | Network fees can spike. A transaction sent to the wrong address cannot be reversed |

## What Hamilton will never say

Hamilton does not describe USDh as a bank deposit or an investment product, and does not claim an audit or an independent reserve check it has not had. If you read otherwise anywhere, this page and the legal documents prevail.

The full legal wording is in the [Risk disclosures](https://docs.hamilton.xyz/legal/legal-documents/general-risk-disclosures.md).

*This page is for information only. It is not an offer to sell or a request to buy any asset, and it is not investment, legal or tax advice.*

*Last updated: 10 November 2026*


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