> ## 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

> Backing, redemption, and rewards

USDB is issued by Brale, while Flashnet runs its BTC rewards program. The questions below cover how those roles affect holding and redeeming USDB.

<AccordionGroup>
  <Accordion title="How is USDB backed?">
    [Brale reports](https://brale.xyz/stablecoins/USDB) that USDB is fully backed
    by US Treasury bills, cash, and cash equivalents. Brale manages the reserves
    that back the token.
  </Accordion>

  <Accordion title="Who is Brale?">
    Brale is a regulated US-based stablecoin issuer. It issues USDB and handles
    reserve management and direct redemption. You can check its current licenses
    through [NMLS Consumer Access](https://nmlsconsumeraccess.org).
  </Accordion>

  <Accordion title="How are reserves verified?">
    Review Brale's reserve disclosures and the scope and date of any independent
    attestation. An attestation reports on reserves at a particular point in time;
    it is different from a full financial audit. Contact
    [Brale](https://brale.xyz) for the current reports that cover USDB.
  </Accordion>

  <Accordion title="How are BTC rewards funded?">
    Flashnet funds rewards from protocol fees and other revenue. Rewards are paid
    daily in BTC, and your trading volume determines your tier. The [rewards
    page](/usdb/rewards) lists the rates and explains the calculation.
  </Accordion>

  <Accordion title="Is there a lock-up period?">
    The rewards program does not require staking, a minimum holding period, or
    locking your USDB. You can continue to trade and transfer it while earning
    rewards. Your time-weighted average balance determines how much of your
    balance counts toward each day's payout.
  </Accordion>

  <Accordion title="How do I exit USDB?">
    Convert USDB to BTC or USDC through [Flashnet
    Trade](https://trade.flashnet.xyz). Choose the asset and network you want to
    receive, then review the quote before confirming. See [Redeem
    USDB](/usdb/redeem).
  </Accordion>

  <Accordion title="What's the minimum to earn rewards?">
    The minimum is 10 USDB. Rewards are capped at a balance of 500,000 USDB.
  </Accordion>

  <Accordion title="How often are rewards paid?">
    Rewards are calculated at midnight UTC, with daily payouts scheduled for 01:00
    UTC. BTC is sent to eligible Spark wallets.
  </Accordion>

  <Accordion title="How does USDB maintain its peg?">
    USDB's \$1 peg is supported by its reserve backing and redemption through
    Brale. Review Brale's current redemption terms when arranging a direct
    redemption.
  </Accordion>

  <Accordion title="Can I redeem USDB for USD directly?">
    Direct USD redemption goes through [Brale](https://brale.xyz). You need to
    open an account and complete its verification process. The documented
    redemption ratio is 1 USDB to 1 USD; confirm eligibility, fees, and processing
    times with Brale.
  </Accordion>

  <Accordion title="How are reserves protected?">
    Brale manages the reserves at regulated financial institutions. Its current
    disclosures and legal terms describe the custody arrangements and the
    protections that apply to holders. Flashnet's BTC rewards are separate from
    USDB's reserve backing.
  </Accordion>

  <Accordion title="Can I use USDB outside of Flashnet?">
    USDB is a Spark-native token. You can hold and transfer it in wallets and
    applications that support USDB on Spark.
  </Accordion>

  <Accordion title="What is Spark?">
    Spark is a Bitcoin Layer 2 network for transferring BTC and tokens such as
    USDB. It supports self-custody and sub-second settlement. Read the
    [Spark documentation](https://docs.spark.money) for its architecture and
    wallet integration details.
  </Accordion>
</AccordionGroup>


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