Custodial Risk

Accessibility and Availability: Bitena has the capability to deposit, withdraw, and delegate operations to exchanges. The unavailability or performance degradation of these functions can impede trading workflows, as well as the minting and redemption processes of USDb.

Operational Duty Fulfillment: In the event of a trade failure, the protocol relies on the cooperation and lawful actions of partners to smoothly transfer any unrealized gains or losses to the exchange. Bitena mitigates this risk by frequently settling gains and losses with exchanges to avoid significant liabilities to the protocol.

Custodian Operational Risk: Although no major cryptocurrency custodial institution has yet experienced a significant operational failure or bankruptcy, such an event remains a possibility. Even though assets are stored in segregated accounts, a custodian's bankruptcy could lead to operational issues in the creation and redemption processes of USDb, as Bitena would need to manage the transfer of these assets to alternative providers.