# Risk management

## Risk management for minting and burning based upon reserve ratio: <a href="#risk-management-for-minting-based-upon-reserve-ratio" id="risk-management-for-minting-based-upon-reserve-ratio"></a>

### Reserve ratio > 130% <a href="#reserve-ratio-above-gt130" id="reserve-ratio-above-gt130"></a>

1. allow minting of USD1
2. allow minting of USD91, USD971, and USD84
3. allow burning of USD91, USD971, and USD84 to USD1
4. allow burning of USD1 to USDT

### 100% < Reserve ratio ≤ 130% <a href="#reserve-ratio-130" id="reserve-ratio-130"></a>

1. pause USD1 minting from USDT temporarily
2. wait for reserve ratio to go above 130% to restart minting USD1 from USDT
3. allow minting of USD91, USD971, and USD84
4. allow burning of USD91, USD971, and USD84 to USD1
5. allow burning of USD1 to USDT

### Reserve ratio ≤ 100% <a href="#reserve-ratio-100" id="reserve-ratio-100"></a>

1. trigger the global settlement process that stops minting USD91, USD971, USD84, and USD1 from USDT&#x20;
2. allow burning of USD91, USD971, and USD84 to USD1
3. allow burning of USD1 to USDT

#### &#x20;<a href="#pause-unpause" id="pause-unpause"></a>

#### &#x20; <a href="#how-to-calculate-reserve-ratio" id="how-to-calculate-reserve-ratio"></a>