What Is the Risk of Using an Uncollateralized Stablecoin for Futures Settlement?

The primary risk is the high potential for a catastrophic de-pegging event, leading to the complete loss of the settled funds' value. An uncollateralized stablecoin relies purely on market mechanisms and confidence to maintain its peg.

If confidence breaks, the stablecoin can rapidly collapse, jeopardizing the integrity of the derivatives settlement process.