Pax Dollar

For each USDP bought, Paxos Trust holds the dollars in custody for USDP customers, in a bank account or as debt instruments at face value.

“For example, if you purchase five USDP with five US dollars, Paxos Trust will hold in custody for the benefit of USDP customers those five US dollars in a bank account or via the face value of Debt Instruments to support the five USDP in circulation.”

Stablecoins issued by Paxos Trust were approved for its customers through a specific approval from the US OCC.

“USD Stablecoins issued by Paxos Trust were approved for customers of Paxos Trust through specific approval from the OCC.”

For Paxos Trust customers, Paxos' General Terms are governed by New York law, with disputes going to arbitration in New York.

“The language of the arbitration shall be English and the Agreement shall be governed by the laws of the State of New York.”

All redemptions are one-for-one, whatever the market value of the reserve assets.

“ALL REDEMPTIONS WILL BE ON A ONE-FOR-ONE BASIS, NOTWITHSTANDING ANY CHANGE IN THE MARKET VALUE OF THE RESERVE ASSETS BACKING USD STABLECOINS.”

Only Paxos customers can buy USDP from Paxos or redeem it with Paxos.

“Only Customers may purchase USD Stablecoins from us or redeem USD Stablecoins from us.”

Paxos charges a fee on the reserves at a market rate, but never one that would take reserves below the tokens outstanding.

“We will apply a fee to reserves backing USD Stablecoins, and you agree to pay us such fee as determined by an appropriate market rate, provided that no fee will be imposed that reduces the USD Stablecoin reserves to below the amount of USD Stablecoins outstanding.”

Paxos may refuse to issue or redeem for a verified customer whose Paxos account is suspended or terminated.

“We may also refuse to issue USD Stablecoins to, or redeem USD Stablecoins from, a verified Customer in the event of any of the suspension and/or termination of your account with Paxos”

Dollars paid for the stablecoins are kept in custodian banks or used to buy debt instruments, keeping one dollar or its face value per token.

“The US dollars used to purchase USD Stablecoins are deposited in custodian banks or used to purchase Debt Instruments to maintain a one-to-one ratio of each USD Stablecoin to the amount of US dollar deposits or the face amount of Debt Instruments.”

Cash reserve accounts are held in Paxos' name and control, separate from its operating accounts, specifically for token holders.

“Each fiat cash depository account is (i) custodied by Paxos Trust, Paxos Digital or PIE in our name and under our control, (ii) separate from our business and operating bank accounts, and (iii) established specifically for the benefit of Customer Token Holders and Non-Customer Token Holders.”

Paxos may suspend minting for any reason it considers necessary or appropriate.

“Paxos also reserves the right to suspend minting USD Stablecoins for any reason it deems necessary or appropriate.”

Paxos may change its fee structure or raise fees at any time.

“We reserve the right to change or modify our fee structure or increase any of our fees at any time and from time to time.”