> For the complete documentation index, see [llms.txt](https://docs.infrastructure.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.infrastructure.finance/usd.infra-vault/risks-and-mitigation.md).

# Risks and Mitigation

## **Risk Overview**

The USD.infra Vault involves real-world infrastructure finance and therefore includes meaningful risk:

* Illiquidity risk: deployed digital infrastructure assets cannot be liquidated instantly. Redemptions depend on available liquidity.
* Credit / performance risk: deployments or acquisitions may underperform underwriting assumptions.
* Counterparty / operational risk: service provider execution, installation timelines, and operating costs can impact returns.
* Legal / regulatory risk: cross-border compliance and securities classification are non-trivial. Participation is restricted to eligible non-U.S. persons and is subject to transfer restrictions. Eligibility and availability vary by jurisdiction.
* Smart contract risk: on-chain contracts may have vulnerabilities. Audits and cautious rollouts are key mitigations (See [Audits](/build/audits.md)).
* Market risk: secondary-market price of sUSD.infra can deviate from exchange rate during stress.

## **Risk Mitigations**

The USD.infra Vault is designed with multiple structural mitigations:

* Bankruptcy-remote SPVs to isolate project assets and protect participant capital.
* Diversification across deal types (compute and connectivity today, with power to follow) to reduce concentration risk. 
* Explicit redemption policy + queues to manage liquidity fairly under load. 
* Ongoing reporting (Deal Explorer, reserves, performance) to reduce information asymmetry (See [Transparency and Reporting](/usd.infra-vault/transparency-and-reporting.md)).