> For the complete documentation index, see [llms.txt](https://docs.re.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.re.xyz/risk-controls-and-what-can-go-wrong/risk-register.md).

# Risk register

Cover Re SPC Ltd. maintains an extensive risk register: a ledger of known risks, who owns them, what action is being taken on each (avoid, mitigate, or transfer), and how likely and how severe each is. The register is reviewed on a regular cadence to catch new risks as they emerge and to retire ones that no longer apply.

For a pure reinsurance operation, the categories on the register are well established: asset and market risk, interest rate risk, foreign exchange risk, credit and counterparty risk, underwriting risk, reserve risk, catastrophe risk, and operational risk. Underwriting risk and catastrophe risk are typically the largest of these. Operational risk tends to be small.

Re's structure adds a second layer. Because the protocol issues yield-bearing stablecoins backed by collateral that sits behind the reinsurance contracts, the register also covers risks specific to a DeFi-native issuer: smart contract risk, custody and chain-of-control risk, infrastructure and security risk, and the integrity of the data feeds the protocol relies on. These sit alongside the reinsurance categories rather than replacing them.

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<sub>*For educational and informational purposes only. Nothing on this Site is investment, financial, legal, or tax advice, or an offer, solicitation, or recommendation to buy, sell, or hold any digital asset, including reUSD and reUSDe. Yields are not guaranteed and all figures are illustrative, not a promise of return; past performance is not a reliable indicator of future results. Digital assets involve significant risk, including total loss of principal — the Tokens are not bank deposits and are not insured by any government agency. The Tokens are available only to eligible non-U.S. persons in permitted jurisdictions and are subject to KYC/AML requirements. The binding terms of the applicable agreements govern and prevail over this summary. See our full*</sub> [<sub>*Disclosures*</sub>](https://re.xyz/disclosure) <sub>*for important additional information.*</sub>\
\ <sub>*Cover Re SPC is unaffiliated with Resilience Foundation. The protocol governs token issuance and capital routing. The reinsurer operates independently under CIMA oversight.*</sub>