# Backing

Genifi adheres to a transparent approach and a strict 1:1 fiat backing policy. This approach ensures that users can trust the stability and security of issued stablecoins, knowing that each token is fully backed and transparently managed.

**Key Features**

* **1:1 Fiat Backing:**
  * Each stablecoin is fully backed by an equivalent amount of the respective fiat currency.
  * Examples include Euro backing for EURO and USD backing for USDO.
* **Proof of Reserve:**
  * Reserve holdings are transparently disclosed via the Chainlink Proof of Reserve Oracle.
  * A link to the Proof of Reserve will be provided at the time of mainnet deployment. The audits are conducted by independent auditors.
* **Treasury Management:**
  * Tokens held in the stablecoin treasury contract are unbacked and not in circulation.
  * The treasury acts as a staging ground for stablecoins, which are sent into circulation upon receiving a minting request from a client.
* **Segregated Reserves:**
  * Reserves backing the stablecoins are kept separately from Genifi's operational resources.
  * This segregation follows guidelines set by the EMI license and relevant regulatory authorities.