Risk Disclosures
Last updated: January 2026
Cryptocurrency Risk Warning
Digital assets, including USDC stablecoin, involve significant risks. Before using FaithStack, you should carefully consider whether holding funds in cryptocurrency is appropriate for your organization.
- The value of cryptocurrencies can be highly volatile
- USDC, while designed to maintain a $1 value, is not guaranteed
- Smart contract bugs or exploits could result in loss of funds
- Blockchain transactions are irreversible
- Regulatory changes could affect availability of services
- You could lose some or all of your funds
No FDIC or SIPC Insurance
Funds held through FaithStack are NOT protected by government insurance programs:
- Not FDIC Insured: Unlike bank deposits, digital assets are not insured by the Federal Deposit Insurance Corporation
- Not SIPC Protected: Digital assets are not protected by the Securities Investor Protection Corporation
- No Government Guarantee: No government agency backs or guarantees digital asset holdings
- May Lose Value: Digital assets, including stablecoins, can lose value
Third-Party Services Disclosure
FaithStack relies on third-party services to provide its functionality. You should understand the risks associated with each service:
Coinbase Developer Platform (CDP)
Coinbase provides the infrastructure for creating and managing blockchain wallets.
- Coinbase is a regulated cryptocurrency exchange
- Wallet keys are managed by Coinbase's secure infrastructure
- Service availability depends on Coinbase's operations
- Subject to Coinbase's terms of service and policies
Circle (USDC Issuer)
Circle issues USDC and maintains the reserves backing the stablecoin.
- USDC is designed to be backed 1:1 by US dollar reserves
- Circle publishes monthly attestation reports
- Circle is a licensed money transmitter in multiple states
- Reserves are held in regulated financial institutions and US Treasuries
Base Blockchain Network
Base is an Ethereum Layer 2 blockchain built by Coinbase.
- Base is secured by Ethereum's security model
- Network congestion can affect transaction times
- Smart contract risks exist on all blockchain networks
- Bridge risks exist when moving assets between networks
Understanding USDC
USDC (USD Coin) is a stablecoin—a type of cryptocurrency designed to maintain a stable value relative to the US Dollar. Here's what you should know:
What USDC Is:
- A digital representation of US Dollars
- Backed by cash and short-term US Treasuries
- Redeemable 1:1 for US Dollars through Circle
- Regularly audited and attested
What USDC Is Not:
- Not legal tender
- Not a bank deposit
- Not guaranteed by the US government
- Not risk-free
Not Financial Advice
Nothing in FaithStack or its documentation constitutes financial, investment, legal, or tax advice. The information provided is for general educational purposes only. You should consult with qualified professionals before making decisions about your organization's finances. FaithStack does not recommend any particular investment strategy or asset allocation.
Service Availability
While we strive to maintain high availability, the Service may be unavailable due to:
- Scheduled maintenance
- Blockchain network congestion or outages
- Third-party service disruptions
- Force majeure events
- Security incidents requiring service suspension
We recommend maintaining alternative access to funds for critical operational needs.
Acknowledgment
By using FaithStack, you acknowledge that you have read and understood these risk disclosures. You confirm that you are authorized to make financial decisions on behalf of your organization and that you accept the risks associated with holding and transacting in digital assets.
Questions?
If you have questions about these disclosures or need clarification on any risks, please contact us at: