# FAQ

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<summary><strong>Q: What is cpUSD?</strong></summary>

cpUSD is a yield‑bearing ERC‑20 receipt token that represents a proportional claim on the cpUSD Vault.

</details>

<details>

<summary><strong>Q: What backs cpUSD?</strong></summary>

cpUSD is backed by the assets held in the cpUSD Vault, including:

1\) PayFi Vault receipt tokens and 2) liquid yield-bearing stablecoin reserve.

</details>

<details>

<summary><strong>Q: Is cpUSD a stablecoin?</strong></summary>

No, cpUSD is not a dollar-pegged stablecoin and does not promise a fixed $1 value.

</details>

<details>

<summary><strong>Q: How does cpUSD earn yield?</strong></summary>

Yield from the vault’s assets increases the vault’s total value over time. The exchange rate rises accordingly, so holders receive their proportional share of accrued yield automatically on redemption with no manual action needed.

</details>

<details>

<summary><strong>Q: Is cpUSD fully permissionless?</strong></summary>

Yes, minting and holding cpUSD require no KYC/AML. It allows permissionless access to yields from the institutional PayFi Vaults backing it.

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<details>

<summary><strong>Q: How often is yield paid out?</strong></summary>

Yield accrues continuously and is reflected in the cpUSD exchange rate. There are no discrete payout events.

</details>

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<summary><strong>Q: Where can I trade cpUSD?</strong></summary>

On supported DEXs and integrated DeFi platforms listed in the official documentation. Its market price on secondary markets may trade above or below the vault exchange rate (NAV).

</details>

<details>

<summary><strong>Q: Are there lock-ups on deposits?</strong></summary>

There are no fixed lock-ups. You will be able to redeem cpUSD for USDC/T as long as there is sufficient liquidity in the cpUSD Vault.

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