Frequently Asked Questions

pUSD is an algorithmic reward asset earned through activity on Prex Markets. It's backed by protocol revenue (trading fees, subscriptions) and can be redeemed for USDT from the Solvency Pool or converted to PREX tokens. Unlike traditional reward tokens, pUSD has real backing and multiple redemption paths.

No. pUSD is NOT a stablecoin like USDC or USDT. Those are 1:1 fiat-backed, custodial stablecoins issued by regulated entities. pUSD is an algorithmic reward asset with a dynamic redemption value based on treasury health and redemption demand. It does not maintain a $1 peg.

Key differences: • USDC/USDT: Purchased on exchanges, 1:1 backed by fiat reserves, custodial, redeemable for $1 • pUSD: Earned through activity, backed by protocol revenue, non-custodial, dynamic redemption value You buy USDC/USDT. You earn pUSD. Your cost basis for pUSD is zero.

Yes, potentially. The redemption value is calculated as: Pool USDT ÷ pUSD Opting to Redeem. If the treasury grows faster than redemptions (or if fewer users redeem), the per-pUSD value could exceed $1. However, this is not guaranteed and depends on protocol performance and user behavior.

Yes. If many users redeem simultaneously or if treasury growth slows, the per-pUSD redemption value could be less than $1. This is a key difference from fiat-backed stablecoins. However, since your cost basis is $0 (you earned it), any positive redemption value is net gain.

You earn pUSD through Proof-of-Activity: 1. **Signup Allocation**: New accounts receive a pUSD allocation that unlocks through activity milestones 2. **Trading Volume**: Earn pUSD proportional to your trading volume 3. **LossLess Rebate**: Automatically receive 10% of realized trading losses in pUSD 4. **Referrals**: Earn from your referrals' trading activity (multi-level) 5. **Ignite Grants**: Community builders can apply for pUSD grants

No. pUSD cannot be purchased on any exchange. It is exclusively earned through activity on Prex Markets. This ensures every holder has a zero cost basis and aligns incentives around genuine platform engagement rather than speculation.

LossLess automatically rebates 10% of your realized trading losses in pUSD. For example, if you close a position with a $500 loss, you receive 50 pUSD. This is subject to monthly and lifetime caps (currently 1,000 pUSD/month, 10,000 pUSD lifetime) to ensure system sustainability.

Earned pUSD unlocks progressively: • 10% unlocks on account creation • +15% after your first trade • +25% after reaching $1,000 trading volume • +50% after 3-month account age (100% total) This prevents gaming and ensures genuine engagement.

There's no hard cap on total pUSD you can earn from trading volume and referrals. However, LossLess rebates have monthly and lifetime caps, and signup allocations are fixed per account. The total pUSD supply is capped at 100M.

There are two redemption paths: **Path A: USDT Redemption** • After 3-month cliff, opt into weekly redemption epoch • Redemption value = Pool USDT ÷ Opting pUSD • USDT sent within 48 hours of epoch close **Path B: PREX Conversion** • Available when PREX reaches $1B FDV • Convert pUSD to PREX 1:1 • PREX vests linearly over 6 months

pUSD must be held for 3 months from its mint date before becoming eligible for USDT redemption (Path A). This cliff ensures treasury stability by preventing rapid extraction. The cliff does NOT apply to PREX conversion (Path B) once that path opens.

Redemption Value = Solvency Pool USDT ÷ pUSD Opting to Redeem in Epoch Example: • Pool: $2,500,000 USDT • Opting to Redeem: 8,000,000 pUSD • Value per pUSD: $0.31 The value is calculated at the end of each weekly epoch based on actual opt-in amounts.

PREX conversion (Path B) unlocks when the PREX token reaches $1 billion fully diluted valuation (FDV). At that point, you can convert pUSD to PREX at a 1:1 ratio. The converted PREX vests linearly over 6 months to prevent dump pressure.

For PREX conversion (Path B), there's a 30% treasury cap. If conversions would exceed 30% of treasury reserves, the conversion path auto-suspends and re-enables as reserves replenish. This protects treasury solvency during high-demand periods.

pUSD is backed by the Solvency Pool, which is funded by: • 50% of all trading fees • 30% of subscription revenue • 20% of marketplace fees (non-burned portion) • Optional venture/debt capital injections This is real protocol revenue, not inflationary token emissions.

All treasury wallet addresses are public and verifiable on-chain. Visit our Transparency page to see live balances, or independently verify by checking the wallet addresses on block explorers. We're also working toward third-party audits of our smart contracts.

The 3-month cliff, weekly redemption epochs, and 30% treasury cap are designed to prevent rapid depletion. If treasury health declines: 1. Per-pUSD redemption value decreases (self-correcting) 2. Users may choose to wait for treasury growth 3. External capital can be injected if needed 4. PREX conversion path may auto-suspend

Yes. The minimum redemption amount is 100 pUSD per epoch. This reduces transaction overhead and ensures meaningful redemptions.

Key risks: 1. **Redemption value volatility**: Value depends on treasury health and redemption demand 2. **Liquidity constraints**: 3-month cliff means you can't immediately redeem 3. **Protocol risk**: If Prex fails, treasury may not grow 4. **Smart contract risk**: Potential vulnerabilities (mitigated by audits) 5. **Regulatory risk**: Uncertain regulatory treatment However, since pUSD is earned (not bought), your risk is opportunity cost, not principal loss.

Since pUSD has a zero cost basis (you earn it, not buy it), you cannot lose principal. Your risk is opportunity cost—the time and activity you invest in earning it. Any positive redemption value you receive is net gain.

pUSD is a reward asset, not a security or stablecoin. However, cryptocurrency regulations vary by jurisdiction and are evolving. Users should consult local regulations and tax advisors. Prex Markets operates under applicable laws and is committed to compliance.

If Prex Markets were to cease operations: 1. Existing treasury assets would be distributed to pUSD holders according to smart contract terms 2. On-chain pUSD would remain in your wallet 3. Redemption mechanisms are encoded in smart contracts (not dependent on Prex servers) We're building for longevity, but the decentralized design provides some protection.

1. Create an account at app.prex.markets 2. Complete identity verification (if required) 3. Make your first deposit 4. Start trading on prediction markets 5. pUSD is automatically credited based on your activity You'll receive an initial allocation that unlocks as you hit milestones.

Yes. You earn pUSD from your referrals' trading activity through a multi-level structure: • Direct referrals (Level 1): Higher commission rate • Indirect referrals (Level 2): Lower commission rate There's no cap on referral earnings. Share your referral link from your dashboard.

Your pUSD balance is displayed in your Prex Markets dashboard. You'll see: • Total pUSD earned • Unlocked vs locked balance • Redemption eligibility status • Earning history and breakdown