RLUSD Stablecoin User Terms

RLUSD User Terms

1. Scope

These RLUSD user terms ("Terms") apply to you if you are a user of RLUSD ("User") and do not have a RippleNet Home customer account with Standard Custody & Trust Company LLC ("SCTC"), the issuer of RLUSD, or another subsidiary of Ripple Labs, Inc. (together, "Ripple").

Key Points:

• Customers with RippleNet Home accounts are governed by the RLUSD Customer Agreement.
• By using RLUSD, you agree to these Terms with SCTC.
• Violations may result in consequences, including suspension of access.

👉 Learn more about RLUSD compliance

2. About RLUSD

2.1 RLUSD Transactions

• Purpose: RLUSD is a stablecoin pegged 1:1 to the U.S. dollar, designed for payments.
• Reserve: SCTC maintains a fully backed Reserve of liquid assets (e.g., U.S. Treasury bills) to ensure redeemability.
• Risks: RLUSD carries risks (e.g., regulatory changes, network suspensions) outlined in Section 11.

2.2 Suspension of RLUSD

Ripple may suspend access if:

• A government authority requests it.
• Fraud or unlawful activity is suspected.
• Terms are violated ("Suspension Event").

3. Representations & Warranties

By using RLUSD, you confirm:

1. You are ≥18 years old and not a Restricted Person.
2. You comply with all applicable laws (e.g., sanctions, anti-money laundering).
3. You won’t use RLUSD for illegal activities (Exhibit A lists prohibited uses).

4. Third Parties

Ripple may delegate responsibilities to third parties without prior notice.

5. Compliance Policies

• Applicable Laws: Users must adhere to local and international regulations.
• Verification: Ripple may request identity verification to prevent fraud.

6. Intellectual Property

• Users may not use Ripple’s trademarks without written consent.
• Unauthorized use may result in legal action.

7. Privacy & Security

• Data Handling: Governed by Ripple’s Privacy and Security Policy.
• Liability: Ripple isn’t liable for malware or phishing attacks affecting users.

8. Termination

Ripple may terminate these Terms at any time by posting notice on its stablecoin portal.

9. Liability

Disclaimer: RLUSD is provided "AS IS." Ripple isn’t liable for:

• Indirect damages (e.g., loss of profits).
• Interruptions or errors in RLUSD transactions.

10. Indemnification

Users agree to cover losses incurred by Ripple due to breaches of these Terms.

11. Risk Factors

Critical Risks:

1. Supported Networks: Ethereum/XRPL disruptions may delay transactions.
2. Forks: Ripple may suspend services during network forks.
3. No Deposit Insurance: RLUSD isn’t FDIC-insured.
4. Regulatory Changes: Laws may impact RLUSD’s functionality or value.

👉 Explore stablecoin security

12. Miscellaneous

• Complaints: Contact [email protected].
• Governing Law: New York State laws apply.
• Amendments: Updated Terms will be posted online.

Exhibit A: Acceptable Use Policy

Prohibited Uses:

1. Unlawful activity (e.g., money laundering).
2. Fraud or market manipulation.
3. Intellectual property infringement.

Prohibited Businesses:

• Drug paraphernalia sales.
• Adult content services.
• High-risk gambling platforms.

Exhibit B: State Disclosures

New York Users:
RLUSD carries material risks (e.g., volatility, irreversibility of transactions). Complaints may be filed with NYDFS.

Other U.S. Jurisdictions:
Check Ripple’s license status for local disclosures.

FAQ Section

Q1: Can I redeem RLUSD for USD?
A: Only Customers (RippleNet Home account holders) can redeem RLUSD 1:1 via the RLUSD Customer Agreement.

Q2: What happens if Ripple suspends RLUSD?
A: During a Suspension Event, transactions may be halted until Ripple resolves the issue.

Q3: Is RLUSD FDIC-insured?
A: No. RLUSD is not legal tender and lacks government-backed insurance.

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