> For the complete documentation index, see [llms.txt](https://docs.ethena.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethena.fi/solution-overview/usde-overview/censorship-resistance.md). # Censorship Resistance ### How *USDe furthers* censorship resistance {% hint style="info" %} Assets backing USDe remain in "Off-Exchange Settlement" institutional grade solutions at all times. The only time collateral flows between custody and exchange is to settle funding or realized P\&L. {% endhint %} Ethena utilizes "Off-Exchange Settlement" (OES) providers to hold backing assets. This enables Ethena to delegate/undelegate backing assets to centralized exchanges without being exposed to exchange-specific idiosyncratic risk. While using an OES provider requires a technological dependence upon the OES provider, it does NOT mean counterparty risk has simply been transferred from the exchange to the OES provider. OES providers typically, where not using an MPC solution, employ a bankruptcy-remote trust framework to ensure the OES provider's creditors have no claim to the assets. In the case of an OES provider failing, these assets are expected to be outside the provider's estate and not exposed to the credit risk of the custodian. \ \ Empirically, Ethena's integrated providers for custody services have never lost a dollar of users funds compared to the $7bn lost in DeFi hacks, and >$15bn in CeFi insitutions last cycle. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.ethena.fi/solution-overview/usde-overview/censorship-resistance.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.