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Fiet Liquidity Commitment Certificate (LCC) Disclaimer

lcc-USDC, lcc-USDT, lcc-*, etc. are non-transferable, protocol-bound bookkeeping units used exclusively within Fiet Protocol’s decentralized exchange for tracking pending settlements in USDC, USDT, or pUSD stablecoins. They are not stablecoins, financial instruments, or payment means and do not represent direct ownership of USDC, USDT, pUSD, or fiat currency. Key characteristics:

  • Non-Transferable: LCCs can only be transferred to/from Fiet’s whitelisted DEX smart contracts, ensuring protocol-restricted use. They cannot be traded or held outside Fiet Protocol.
  • No Yield or Profit Expectation: LCCs do not generate yield or passive profits; any gains result from active trading fees within the protocol.
  • Bookkeeping Role: LCCs account for liquidity committed by Reserve Liquidity Providers (RLPs), verified via zkTLS proofs, but are not backed by reserves, and settlements may fail.
  • MiCA Compliance: Due to their non-transferable, protocol-specific nature, lcc-USDC, lcc-USDT, and lcc-pUSD are not classified as Asset-Referenced Tokens (ARTs) or E-Money Tokens (EMTs) under the EU’s Markets in Crypto-Assets (MiCA) regulation.
  • Stablecoin Settlement Process: Settlements are handled by Licensed Fiat Custodians (LFCs), who conduct KYC/AML compliance. A third-party settlement mechanism mitigates failure risks.

Risk Warning: LCCs carry risks, including settlement delays or market volatility. They are intended for DeFi participants familiar with Fiet Protocol’s mechanics. Always review the protocol’s terms and conditions.