Risks to tell your users
If you offer kUSDT or the bridge to your users, tell them what can go wrong. The list below is a summary. The security pages are the full account, and they change as the project does: link to them rather than copy them.
| Page | What it covers |
|---|---|
| Known limits | Limits of the v1 design that users, partners and auditors should know about |
| Threat model | What each party that could be compromised can and cannot do, with numbers |
| Audit status | What has been reviewed and tested, and what has not |
| Trust model | Who and what a kUSDT holder relies on |
| Terms of Service | The terms the web app and kUSDT Wallet ask users to accept |
What to tell users
Section titled “What to tell users”- Not audited. kUSDT is on mainnet with real USDT, and no part of it has had an independent audit: not the Kaspa covenants, not the vault, not the transaction builders. Internal and outside reviews are not audits. An independent audit and a legal review are open items of the mainnet checklist.
- Real money. From 14 November 2026 kUSDT runs on Kaspa mainnet, Ethereum and BNB Chain. A mistake costs real USDT. The public testnet ended the same day, so there is no public place left to try it with test coins.
- kUSDT is not USDT. It is not issued by Tether. It is backed by USDT held in the bridge’s vaults (FAQ).
- The bridge is federated. 5 signers attest to deposits and burns, and any 3 suffice. Three stolen keys could mint unbacked kUSDT or pay out without burns, within the daily limits (The bridge is federated, Threat model).
- Check the covenant ID. Any token can call itself kUSDT. Only the covenant ID identifies the real one (Holding kUSDT in another wallet).
- A burn cannot be undone. A redemption pays the address it names, and nobody can redirect it. A wrong address loses the funds (Redeem kUSDT).
- Some burns are never paid. An amount at or below the release fee, and any burn that is not a plain one (Small burns are not paid, Only plain burns are paid).
- Tether can block payouts. A recipient the token blocks is not paid until it is unblocked; a blocked vault pays nothing out (Blocked recipients, Tether can block payouts).
- A redemption is paid by one vault. It must fit that vault’s backing and release capacity (Redemptions depend on one vault).
- USDT sent straight to a vault is lost. Only the vault’s deposit function bridges (Known limits).
- The bridge can be paused and can wait. The guardian pauses the vaults, the minter and the pool on any alarm. Every payout waits 10 minutes in the vault before it is sent, and mints and payouts also wait when the daily limit (50 000 kUSDT per 24 hours at the launch) is used up (Guardian and pause, The daily limit can be used up by one party).
- The pool caps sells and can be paused. Sells may take at most 10 % of the pool’s KAS per hour, net of buys; a paused pool takes no swaps (The pool caps sells, The pool can be paused).
- Fees and KAS. Bridging costs a fee each way, swaps cost 0.50 %, and every Kaspa transaction pays a network fee. A burn output locks 0.3 KAS for good (Fees, Burns lock KAS too).
Your own part
Section titled “Your own part”Tell users who runs your integration and who to ask about it. Don’t present the bridge’s rules as your own promises, and don’t describe kUSDT with words the security pages don’t support. See Using the name.