> ## Documentation Index
> Fetch the complete documentation index at: https://docs.flashnet.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# FAQ

> Common questions about USDB backing, reserves, rewards, and Brale

<AccordionGroup>
  <Accordion title="How is USDB backed?">
    USDB is fully backed 1:1 by US Treasury bills and cash equivalents, held by regulated custodians. It's issued by [Brale](https://brale.xyz), a licensed stablecoin issuer.

    Brale maintains reserves in:

    * Short-duration US Treasury Bills (less than 3 months maturity)
    * Cash at regulated U.S. financial institutions

    Every USDB is redeemable for \$1 USD worth of these assets.
  </Accordion>

  <Accordion title="Who is Brale?">
    Brale is a regulated stablecoin-as-a-service provider based in the United States.

    **Licensing:** Registered Money Services Business (MSB) with FinCEN (#31000257808337), holds Money Transmitter licenses in 44 U.S. states (NMLS ID #2376957), and is subject to quarterly state reporting and federal compliance requirements.

    You can verify Brale's licenses yourself at [nmlsconsumeraccess.org](https://nmlsconsumeraccess.org).
  </Accordion>

  <Accordion title="How are reserves verified?">
    Brale undergoes multiple layers of independent verification:

    * **Monthly audits**: Third-party reserve attestations by Abdo accounting firm
    * **Daily reporting**: Public self-attestations of reserves published daily
    * **Annual audit**: Comprehensive financial review by a licensed CPA firm
    * **Daily reconciliation**: Automated matching of on-chain token supply vs. fiat balances

    Reserve attestations are publicly available on [brale.xyz](https://brale.xyz).
  </Accordion>

  <Accordion title="How are BTC rewards funded?">
    Flashnet funds rewards from protocol fees and other revenue. As volume grows, so does the revenue base that sustains rewards.

    This system is baked into Flashnet's long-term strategy, and is not a promotional campaign. Rewards are paid daily in BTC and scale with your protocol usage.
  </Accordion>

  <Accordion title="Is there a lock-up period?">
    **No.** You can buy, sell, transfer, or redeem your USDB at any time. Rewards are calculated based on a rolling average and trading volume, but there's no minimum holding period or withdrawal restrictions.
  </Accordion>

  <Accordion title="How do I exit USDB?">
    See the [Redeem USDB](/usdb/redeem) page for complete details on all exit paths, including what's available now and what's coming soon.
  </Accordion>

  <Accordion title="What's the minimum to earn rewards?">
    10 USDB. Balances below 10 USDB don't earn rewards.
  </Accordion>

  <Accordion title="How often are rewards paid?">
    Daily. Rewards are calculated at midnight UTC and distributed to eligible wallets.
  </Accordion>

  <Accordion title="How does USDB maintain its peg?">
    USDB maintains its \$1 peg through full 1:1 backing by US Treasury bills and cash equivalents. The value is secured by real assets held by regulated custodians.
  </Accordion>

  <Accordion title="Can I redeem USDB for USD directly?">
    Yes. Create an account at [Brale](https://brale.xyz), complete their verification process, and redeem USDB for USD (bank transfer) or USDC at a 1:1 ratio. See the [Redeem USDB](/usdb/redeem) page for step-by-step instructions.
  </Accordion>

  <Accordion title="How are reserves protected?">
    Brale maintains multiple layers of protection:

    **Legal structure:** Reserves are held in segregated accounts at regulated U.S. financial institutions. The structure is bankruptcy-remote, with reserves legally separate from Brale's operational funds. Reserves are used exclusively to back outstanding USDB.

    **Security:**

    * SOC 2 Type II certified (highest standards for security, availability, and confidentiality)
    * Smart contracts independently audited by Certik
    * Multi-party computation (MPC) for private key protection
  </Accordion>

  <Accordion title="Can I use USDB outside of Flashnet?">
    Yes. USDB is a Spark-native token that can be held in any Spark wallet, transferred to any Spark address, and used in any Spark-compatible application.

    Flashnet is just one place to trade and earn rewards on USDB.
  </Accordion>

  <Accordion title="What is Spark?">
    Spark is a Bitcoin Layer 2 network that enables instant, low-cost transfers of BTC and tokens like USDB. It uses a FROST-based protocol to achieve sub-second settlement while maintaining self-custody.

    Learn more at [spark.money](https://spark.money) or read the [Spark documentation](https://docs.spark.money).
  </Accordion>
</AccordionGroup>