> For the complete documentation index, see [llms.txt](https://docs.aladdin.club/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.aladdin.club/f-x-protocol-new/f-x-2.0/advanced-peg-protection-mechanisms.md).

# Advanced Peg Protection Mechanisms

**Stability Pool as Peg Keeper:**

* Maintains fxUSD stability through arbitrage operations within the fxUSD/USDC AMM pool.

**Operational Restrictions During Depegging:**

* New xPOSITION openings are prohibited to prevent excess fxUSD minting.
* Stability pool yield incentives attract additional liquidity to restore the peg.

**xPOSITION Funding Fees:**

* During a depeg, funding fees are charged to xPOSITION holders, enhancing stability pool yields.

**Redemption of fxUSD:**

* Users can purchase fxUSD on the secondary market and redeem it for $1.00 worth of collateral (subject to fees).