Integrate DigiDollar Plain-English Risk Information / Product Information & Risk Disclosure into DigiByte Core Wallet

[Shen]

I would like to propose adding a user-facing risk disclosure step to the DigiDollar feature inside the DigiByte Core wallet.

Idea

When a user opens DigiDollar for the first time, the wallet should display the Plain-English Risk Information and require the user to confirm that they have read and understood it before proceeding.

Additionally, the full DigiDollar Product Information & Risk Disclosure document could be made accessible via a link such as:

“View detailed information” or “Full risk disclosure”

This would allow users to access comprehensive documentation without overwhelming the onboarding experience.

Why this matters

1. Prevents misunderstandings

Clear upfront disclosure helps set correct expectations.

2. Improves transparency and trust

Providing clear, understandable risk information strengthens user confidence and demonstrates responsible design.

3. Aligns with best practices

Wallets, exchanges, and financial applications commonly present key risk disclosures before enabling access to financial functionality.

This approach is consistent with:

• consumer protection principles
• regulatory transparency expectations
• exchange and institutional due-diligence standards

4. Protects both users and the ecosystem

• Clear communication reduces the risk of:
• user confusion during market stress
• reputational damage from misunderstood mechanics
• support burden caused by avoidable misunderstandings

Suggested UX flow

• User opens DigiDollar for the first time
• Plain-English Risk Information is displayed
• User must confirm:
• ☑ I have read and understood the information above.
• Button: Continue
• Secondary link: View detailed information

Design principles

• Plain language
• Neutral tone (not alarming)
• Clear and concise
• Accessible at any time via Help/About

Goal

The goal is not to discourage usage, but to ensure users understand:

• collateral lock mechanics
• possible redemption pauses
• price deviation from $1
• self-custody responsibility
• jurisdictional and regulatory considerations
• Informed users strengthen the ecosystem.

I believe this small UX addition would significantly improve clarity, trust, and long-term adoption.

Feedback welcome.

[Shen]

DigiDollar

Plain-English risk information

Version 1.1

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1. What DigiDollar is

DigiDollar (DD) is a digital currency designed to track the value of the US dollar.
It is created by locking DigiByte (DGB) as collateral in your own wallet.
There is no bank, company, or government controlling DigiDollar.
You remain in control of your funds and private keys at all times.

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2. Important things to understand

DigiDollar is designed to be stable, but it is not risk-free.
The system works through software rules and market conditions, not guarantees.

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2a. No issuer and no guaranteed redemption
DigiDollar is not issued by a bank or company.
Holding DigiDollar does not give you a legal claim against any issuer.
Redemption depends on protocol rules, network conditions, and your lock period.

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3. Your collateral is locked

When you create DigiDollar, your DigiByte is locked for a chosen period.
• You cannot access it during this time.
• The lock period can range from short to long durations.
• You regain access only after redemption conditions are met.
Only lock funds you can afford to keep inaccessible.

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4. Redemption may not always be immediate

In rare situations, the system may temporarily pause minting or redemption to protect stability.
This may happen if:
• price data becomes unreliable,
• markets move extremely fast,
• the network detects abnormal conditions.
When this happens, operations resume automatically once conditions normalize.

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4a. Network disruptions, upgrades, and access restrictions
DigiDollar depends on the DigiByte network and internet-connected software. Congestion, outages, or chain reorganizations can delay transactions.
Network upgrades or forks may change how the system works and may require software updates.
Some services or jurisdictions may restrict access, suspend trading, or delist DigiDollar.

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5. DigiDollar may not always equal $1

DigiDollar is designed to maintain a value of $1 based on oracle pricing and collateral mechanisms.
However, market trading prices may vary depending on liquidity and market conditions.

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5a. Trading, liquidity, and market manipulation risk
If DigiDollar is traded on exchanges or peer-to-peer markets, the market price may differ from $1.
In low-liquidity markets, prices can move quickly and may be influenced by large trades or manipulation.
You may not be able to buy or sell DigiDollar at your expected price.

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6. Large price drops in DigiByte increase risk

DigiDollar is backed by DigiByte.
If the price of DigiByte falls sharply:
• system stability may be stressed,
• redemption conditions may become less favorable,
• additional safeguards may activate.

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7. You control your keys — and your responsibility

You are responsible for securing your wallet and private keys.
If you lose access to your wallet or recovery phrase:
• your funds cannot be recovered,
• no support service can restore access.

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8. Privacy is improved, not guaranteed

Transactions are designed to enhance privacy, but complete anonymity cannot be guaranteed.
Blockchain analysis, exchange activity, and user behavior can affect privacy.

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9. Laws and taxes depend on where you live

Rules for digital assets differ across countries.
Using DigiDollar may have legal or tax consequences depending on your jurisdiction.
You are responsible for understanding local requirements.

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10. DigiDollar is not a bank product

DigiDollar is not:
• a bank account
• a savings product
• a government-backed currency
• insured or guaranteed
It is a decentralized digital system.

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10a. Fees and costs may apply
Using DigiDollar may involve network transaction fees.
Exchanges, wallet providers, or other services may also charge fees.
Fees can change depending on network conditions and service providers.

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11. Who should use DigiDollar carefully

DigiDollar may not be suitable for people who:
• need guaranteed access to funds at all times,
• cannot tolerate price fluctuations,
• are unfamiliar with managing private keys,
• require consumer protection or deposit insurance.

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12. Summary

DigiDollar enables stable digital payments without intermediaries.
It provides flexibility and control, but also requires understanding and responsibility.
Before using DigiDollar, make sure you understand:
• your collateral will be locked,
• redemption may be temporarily paused,
• the price may vary from $1,
• you are responsible for securing your wallet,
• network disruptions or upgrades may affect access,
• market liquidity may affect trading prices,
• rules and taxes depend on your country.

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Final note

Only use DigiDollar if you understand how it works and are comfortable with the associated risks.

[Shen]

DigiDollar

Product Information & Risk Disclosure

Version 1.1

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1. Purpose and Overview

DigiDollar (“DD”) is a decentralized USD-referenced digital asset implemented natively on the DigiByte blockchain. DigiDollar is minted by locking DigiByte (DGB) as collateral under protocol-enforced time-lock conditions, using decentralized oracle price feeds to determine the minting rate.
DigiDollar is designed to enable stable-value transactions without centralized custody, bank reserves, or a corporate issuer.
DigiDollar and DigiByte may be used globally and are not restricted to any single jurisdiction.

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2. Legal Nature and Absence of Issuer Liability

DigiDollar is not issued, guaranteed, or administered by any company, bank, foundation, government, or other legal person. Holding DigiDollar does not create any contractual, statutory, or fiduciary claim against any issuer, developer, operator, or network participant.
Accordingly:
• DigiDollar is not legal tender.
• DigiDollar does not constitute a bank deposit.
• DigiDollar does not represent a monetary claim against any entity.
• DigiDollar does not provide a guaranteed right of redemption into fiat currency.
• DigiDollar does not guarantee price stability or parity.
Regulatory classification may differ by jurisdiction and may include treatment as a crypto-asset, commodity, payment token, or other regulated instrument.

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3. Core Mechanism

3.1 Minting
Users mint DigiDollar by locking DGB as collateral in a protocol-recognized time-locked output. The mint amount is derived from:
• collateral value,
• lock duration and collateral ratio,
• oracle-derived DGB/USD reference price.
3.2 Transfer
DigiDollar may be transferred on-chain subject to protocol validation rules. Privacy-enhancing transaction structures do not guarantee anonymity.
3.3 Redemption
After the lock period expires, DigiDollar may be redeemed by burning DD to unlock the corresponding collateral. Redemption is subject to protocol safety rules and system health conditions.

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4. Oracle Reference Price Determination

DigiDollar relies on decentralized oracle operators to supply reference pricing data.
Key characteristics include:
• cryptographically signed submissions,
• protocol-authorized oracle public keys,
• threshold-based consensus,
• median aggregation and statistical outlier filtering,
• freshness and validity constraints.
If valid oracle data is unavailable or unreliable, protective measures may restrict system operations.

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5. Collateralization Framework

DigiDollar is collateralized by DGB and typically overcollateralized depending on lock duration.
Users should understand:
• collateral is time-locked and inaccessible until redemption conditions are met,
• no forced liquidation mechanism exists,
• prolonged collateral value decline may affect system collateralization,
• overcollateralization mitigates but does not eliminate systemic risk.

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6. Protective Protocol Controls

The protocol may implement automated protective controls, including:
• volatility circuit breakers,
• oracle validity requirements,
• system health thresholds,
• emergency redemption ratios under systemic stress.
Accordingly:
• minting may be automatically suspended,
• redemption may be temporarily restricted,
• certain DigiDollar operations may be limited.
Users should not assume uninterrupted liquidity or continuous redeemability.

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7. Governance and Protocol Development

The DigiDollar protocol operates within the open-source DigiByte ecosystem. Development and maintenance are conducted by independent contributors and community participants.
No central authority controls protocol changes. Future updates, consensus rule changes, or governance decisions may affect functionality and system behavior.

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8. Protocol Upgrade and Network Change Risk

Blockchain networks evolve over time. Software updates, consensus rule modifications, or network forks may alter compatibility, transaction validity, or system behavior.
Users may need to update software to remain compatible.

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9. Principal Risk Factors

9.1 Peg deviation risk
DigiDollar is USD-referenced but may trade at a premium or discount due to market conditions, liquidity constraints, oracle disruptions, or systemic stress.

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9.2 Oracle integrity and price feed risk
Risks include oracle operator compromise, data inaccuracies, exchange outages, delayed propagation, or aggregation errors.
Threshold consensus and filtering reduce but do not eliminate risk.

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9.3 Collateral value risk
A sustained decline in DGB value may reduce collateral coverage and affect redemption efficiency during stress events.

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9.4 Lock-up and liquidity risk
Collateral lock periods and protective pauses may limit liquidity and delay redemption.

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9.5 Secondary market and liquidity risk
DigiDollar may be traded on exchanges or peer-to-peer markets where available. Liquidity and price discovery depend on market participants.
Limited liquidity or market disruptions may affect the ability to transact at expected prices.

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9.6 Market integrity and manipulation risk
Thin liquidity, coordinated trading activity, or market manipulation may influence secondary market prices independently of protocol reference pricing.

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9.7 Protocol and consensus risk
Risks include implementation defects, validation edge cases, script vulnerabilities, economic exploits, or consensus failures.
Such events could disrupt system functionality.

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9.8 Network and operational continuity risk
Blockchain networks may experience congestion, delayed confirmations, chain reorganizations, node outages, or other operational disruptions.
These events may delay transactions or affect system availability.

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9.9 Technology and infrastructure dependency
DigiDollar depends on the DigiByte network, internet connectivity, wallet software, node infrastructure, and oracle data sources.
Infrastructure failures or cyber incidents may affect availability.

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9.10 Privacy and traceability risk
Privacy features do not ensure anonymity. Transaction analysis and user behavior may reduce privacy.

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9.11 Operational and custody risk
Users are solely responsible for private key security. Loss or compromise of keys may result in irreversible loss.

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9.12 Regulatory and compliance risk
Digital asset regulation varies globally and may change. Restrictions, licensing requirements, compliance obligations, or enforcement actions may affect availability or use.

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9.13 Sanctions and delisting risk
Service providers, exchanges, or jurisdictions may restrict access, suspend trading, or delist DigiDollar based on regulatory, compliance, or risk considerations.

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9.14 Absence of supervision and consumer protection
DigiDollar operates as a decentralized protocol and may not be subject to financial supervision.
Users may not benefit from investor protection schemes, deposit insurance, or statutory consumer protections applicable to regulated financial products.

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9.15 Tax risk
Tax treatment varies across jurisdictions. Users are responsible for compliance with local tax obligations.

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10. Fees and Transaction Costs

Using DigiDollar may involve network transaction fees and fees charged by exchanges, wallet providers, or service platforms. Fees may vary depending on network conditions and service providers.

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11. Suitability Considerations

DigiDollar may be unsuitable for individuals or entities requiring:
• guaranteed redemption at par value,
• immediate liquidity,
• low volatility exposure,
• custodial protections or statutory safeguards.

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12. No Advice or Offering

This document is provided for informational purposes only and does not constitute financial, legal, or tax advice, a solicitation, or an offer of securities or financial instruments.

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13. User Acknowledgement

By using DigiDollar, users acknowledge and accept:
• potential deviation from USD parity,
• possible suspension of minting or redemption,
• time-locked collateral constraints,
• exposure to protocol, market, operational, and regulatory risks.

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