Product Structuring

Mountain Protocol Limited (the "Company") is a licensed Digital Asset Business (license #202302512) allowed to conduct the following business activities:

• Issuing, selling, and redeeming virtual coins, tokens, or any other form of digital assets.

• Providing custodial wallet services.

The Company provides its services by directly issuing the USDM token, operating the Mountain Protocol platform, and leveraging multiple service providers directly or on users' behalf.

Rights conferred by the USDM token

The Company will ensure US$ 1 or an equivalent amount of USD-denominated assets will be held by USDM Reserves limited, a bankruptcy remote trust, which can exclusively hold USDM liabilities and USDM Reserve assets to support the $1 redemption from users.

For more information, please visit the Terms and Conditions.

Partners

Mountain Protocol works with enterprise-grade partners and, when possible, with leading regulated institutions.

Category	Partner
Digital asset issuer	Mountain Protocol Limited (the Company)
Digital asset custody	Fireblocks - link
Smart contract audit	OpenZeppelin - link
Auditor	The Network Firm - link
Onramp	Coinbase Prime - link
Compliance analytics	Chainalysis - link
Investment Manager	EQ Capital - link
US Representation	Winston & Strawn LLP - link
Offshore representation	Carey Olsen - link
3rd party signing	Steakhouse Financial - link
Attestations	Nephos

User experience

This user experience of USDM will feel familiar to users of other stablecoins such as USDC, USDT, GUSD, or other fiat-backed stablecoins, since they all:

• Have Primary users (KYC'd account holders) and Secondary users (pseudonymous users with no direct relationship with the issuer).

• Allow primary users to purchase and redeem stablecoins at a 1:1 price via portal or API, used mainly by Exchanges, Arbitrageurs/Market Makers, or large buyers.

• Rely on arbitrageurs to maintain secondary market prices at ~$1.

• The Token can be used freely in the secondary market, including transfers to other EOAs or Smart Contracts, without any additional approvals.

User types

The Company also recognizes two types of users: primary and secondary users.

Primary users (or customers) have an approved account with Mountain Protocol, granting them access to the Mountain Protocol platform. The platform allows users to purchase and redeem USDM with USDC (fiat payments coming soon). Accounts will be eligible to incorporate businesses in supported jurisdictions that do not participate in restricted economic activities, pending compliance approval.

Secondary users (or customers) are those who acquired their USDM via the secondary market, such as a pool in Curve or other DeFi applications, or have been paid in USDM by another USDM holder. Secondary users need to apply for a Mountain Protocol account before they can redeem USDM directly with the Company. Alternatively, users can choose to swap their USDM to other users in the secondary market.

Note that the Company does not directly control secondary market pricing. The company does not guarantee that users can swap their USDM at par in the secondary market.

Open composability

USDM is an ERC20 token that can be used freely in any ERC20-compatible protocol as long as such activity falls under the terms and conditions.

The Company will conduct efforts to provide USDM users with more options, which include:

• Swap pools: allowing for cheap swaps from the most popular assets to USDM.

• Lending protocols: providing USDM as collateral or borrow asset.

• PSMs: by enabling USDM as collateral to mint other assets, users can benefit from 0% interest loans (or even negative interest rate loans).

• LPs: Digital asset pools trading against USD-denominated stablecoins benefit from a yield-bearing USD asset to boost returns.

Warning: given the risky nature of bridges, Mountain Protocol does not endorse or support any bridges. Users who leverage bridges do so at their own risk.

To minimize such risk, the Company will aim to offer native USDM in all large blockchains over time.

Supported blockchains

USDM is currently live on Ethereum Mainnet, Polygon Mainnet, Arbitrum One, Optimism Mainnet and Base, with more blockchains to come in the future.

Since the main bottleneck to launching in alternative blockchains is initial liquidity, if you are a large liquidity provider and are interested in partnering for launch in other blockchains, feel free to reach out to [e-mail].