How to Spot Ripple USD Risks with Signals
Identify and monitor risk factors in your RLUSD holdings with health signals.
Ripple USD Risk Overview
Ripple USD (“RLUSD”), issued by Standard Custody & Trust Company, LLC, a wholly owned subsidiary of Ripple Labs, is a USD denominated stablecoin created with trust, liquidity, and compliance at its core. Each RLUSD is backed by at least an equivalent amount of U.S. dollars and other cash equivalents. RLUSD is purpose-built for cross-border payments and delivers reliable access to digital dollars. As an industry leader for over a decade, Ripple has a proven track record of delivering breakthr...
Understanding Ripple USD Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your Ripple USD (RLUSD) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for Ripple USD
- Concentration Risk: Your RLUSD position exceeds your bet size range
- Liquidity Risk: Your position is large relative to daily trading volume
- Volatility Risk: Large price swings combined with meaningful position size
- Focus-Timing Mismatch: High Focus but unfavorable market timing
- FOMO Risk: Good timing but low Focus score
- Cleanup Candidate: Very small position with low Focus
- Overweight Poor Timing: Above bet size range during unfavorable conditions
Volatility Context
Ripple USD currently exhibits stable price action with a 24-hour volatility of 0%. As a stablecoin, RLUSD is designed to maintain price stability, but this doesn't eliminate all risks such as de-pegging events or protocol vulnerabilities.
How Fundamentally Monitors Ripple USD Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for Ripple USD. Each signal tells you specifically what risk is present in your RLUSD position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when RLUSD exceeds your bet size range. Volatility Risk signals you to large price swings. Focus-Timing Mismatch warns when market conditions don't favor your position.
Take Informed Action
You DecideUse the Investment Calculator to determine how much Ripple USD to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your RLUSD position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your Ripple USD position is large relative to daily trading volume.
Volatility Risk
Tracks RLUSD price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for Ripple USD with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for Ripple USD: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your RLUSD Focus score, position size, and market conditions.
Stablecoins like Ripple USD can lose their peg during market stress or reserve issues. Monitor RLUSD reserve composition, redemption mechanisms, and historical peg stability when evaluating concentration risk.
Stablecoins like Ripple USD face de-peg risk rather than typical volatility. Monitor RLUSD reserve health, audit reports, and any deviation from the $1 peg. Concentration Risk still applies if you hold too much in a single stablecoin.
Monitor Ripple USD Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.