> For the complete documentation index, see [llms.txt](https://docs.suno.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.suno.finance/overview/faq.md).
# FAQ
Short answers on the uWatt, the yield, pWatts, trust and control, and the legal side, each linked to the full page.
The short answers. Each one links to the page that carries the full mechanics.
## About the uWatt
What backs the uWatt, and how can I check it?
Every uWatt is backed by the Reserve: operating solar plants plus a liquidity sleeve, together worth more than all the uWatt in circulation. The value is checkable link by link. The plants are valued by a published model with frozen, versioned snapshots, an independent attestor verifies that the holdings are real, and the attested number is written on-chain, where the protocol's desk reads it. [The Reserve](/protocol/the-reserve.md) walks through the whole chain.
Is the uWatt a stablecoin?
It is an asset-backed token with a $1 target, closer to a share in an income fund with a fixed unit value than to a payments stablecoin. A payments stablecoin promises instant 1:1 redemption of its whole supply against fully liquid backing. The uWatt's backing is mostly productive infrastructure, so instant redemption is guaranteed up to the liquidity sleeve, and converting the rest takes time. [The uWatt](/protocol/the-uwatt.md) draws the exact boundaries of the promise.
Can I lose money holding uWatt?
While the Reserve is worth at least as much as the supply, every uWatt redeems at $1, and the protocol maintains a margin above that line so that swings in the plants' value land on the margin first. If a large enough shock ever pushed the backing below the supply, the token would be worth exactly the backing per token, and everyone who exits during the impairment takes the same pro-rata haircut. The margin exists so ordinary swings never reach holders; the pro-rata rule exists so an extraordinary one is shared fairly instead of falling on whoever redeems last. The numbers behind both are in [The uWatt](/protocol/the-uwatt.md) and [The Reserve](/protocol/the-reserve.md).
Can I always redeem? What are the limits?
Redemption is open against the liquidity sleeve, at $1 per uWatt minus a small fee. Two mechanisms protect the portfolio while keeping the door open: when the buffer's cash runs short, liquid instruments convert automatically to cover the payout, and a daily queue spaces out unusually heavy days so a plant never has to be sold in a hurry. [The uWatt](/protocol/the-uwatt.md) covers the guarantees and their limits, and [Risk disclosures](/legal/risk-disclosures.md) covers the case the guarantees do not: what happens if the sleeve runs dry.
What happens if everyone redeems at once?
The queue turns the spike into an ordered line, with everyone paid the same price. Heavy redemption also sets a counterweight in motion: exits drain the lowest-yielding part of the Reserve and spread the same energy income over fewer tokens, so the staking yield rises, and a higher yield attracts fresh minting that rebuilds the buffer. The full dynamic is in [The uWatt](/protocol/the-uwatt.md).
## About the yield
Where does the yield come from?
Electricity. The Reserve's plants sell energy under long-term contracts, the payments arrive as stablecoins, and each payment is split between stakers and the Reserve's margin. If revenue does not arrive, nothing is distributed: the protocol never mints yield against a projection. [Yield and staking](/protocol/yield-and-staking.md) has the split rule.
What rate should I expect, and why is it variable?
The protocol targets a double-digit annual yield for stakers, and no fixed rate exists anywhere in the system. What you receive is the cash performance of real plants, shaped by weather, energy prices, the Reserve's composition, and how much of the supply is staked alongside yours. [Yield and staking](/protocol/yield-and-staking.md) explains each factor.
What is c-uWatt, and how does staking work?
c-uWatt (Compounding uWatt) is what you receive for depositing uWatt in the staking vault: a share whose value in uWatt grows as income vests. There is no lockup and nothing to claim; you unstake at any time at the going rate, and your yield arrives as the share simply becoming worth more. [Yield and staking](/protocol/yield-and-staking.md) covers the vault and its vesting.
Do I have to stake?
No. Unstaked uWatt is the stable unit: it holds its $1 target and works for payments, liquidity pools, and pricing. The portfolio's income goes to those who opt in by staking, so holding without staking means choosing stability without the return.
## About pWatts and the projects
What does buying pWatts mean, and what do I earn?
You finance the construction of one specific plant. When it reaches commercial operation, you receive uWatt worth more than you put in: your reward is a share of the value created by carrying the project through construction. The illustrative journey in [How it works](/overview/how-it-works.md) shows a $1.0M raise returning about 10% at the swap, and [the pWatt](/protocol/the-pwatt.md) has the exact rule that divides the gain.
What happens to my pWatts when the plant starts operating?
The project's entire pWatt supply is exchanged for uWatt in one operation, and the pWatts themselves stay in the Reserve as the on-chain certificate of the project it now owns. From then on you hold uWatt: liquid, diversified across the whole portfolio, and stakeable. [The pWatt](/protocol/the-pwatt.md) explains why the swap is total.
What risks do I take during construction?
The risks of building: schedule delays, equipment procurement, connection and commissioning. Funds are released against installation milestones, and the discount for entering early is the compensation for carrying more of that timeline. pWatts can be transferred person to person, though the protocol does not operate a secondary market for them; the instrument exists to be held to commercial operation. [The pWatt](/protocol/the-pwatt.md) covers the terms.
How does Suno decide which projects to finance?
Every candidate is valued with the same published model that prices the Reserve: measured production expectations, contracted revenue, audited costs, explicit risk premiums. A project whose economics cannot both reward its investors and sustain the Reserve's margin does not get originated. The filter is described in [Risk management](/protocol/risk-management.md), and the methodology in [The Financial Model](/financial-model/overview.md).
## About trust and control
Who controls the protocol? Can Suno change the rules?
Daily operations run on narrow keys that can each do exactly one job. Configuration and upgrades sit behind a multisig and a timelock, and every change is a public on-chain event. Some rules bind the administrators themselves: no role can mint above the capped price, pay yield that revenue does not support, or write an internally inconsistent risk configuration. There is no token-holder voting. [Governance and parameters](/protocol/governance-and-parameters.md) has the full authority map.
Who verifies that the Reserve is real?
Three parties outside the operating team. An independent proof-of-reserve attestor continuously verifies that the value reported on-chain matches real holdings; the smart contracts undergo independent security audit, summarized on [Security audit](/protocol/security-audits.md); and the valuation methodology is published in full, so anyone can recompute the numbers behind the backing. [Risk management](/protocol/risk-management.md) and [The Financial Model](/financial-model/overview.md) are the places to start checking.
## About the legal side
Who issues the tokens, and what do I own when I hold one?
Suno operates through several companies, and the one that directs the protocol and sets the terms of every token is Suno Investments S.A. The tokens themselves are issued by Ensuro Re Ltd., a Bermudian company licensed under Bermuda's Digital Asset Business Act, through a segregated account called "Suno Reserve" whose assets are legally walled off from everything else the issuer does. What you hold is a contractual right to a share of the Reserve's cash flows, with recourse limited to that account. It is not equity in Suno or in any plant. [Legal structure](/legal/legal-structure.md) has the three layers and their limits.
Do I need to complete identity verification to hold uWatt?
To hold it, no: uWatt and c-uWatt are ERC-20s and can be bought on secondary markets or received from anyone, and uWatt bought that way can be staked. The gate sits where value enters or leaves the protocol. Swapping pWatts into uWatt, minting at the desk, and redeeming at the desk are open only to wallets recorded in the on-chain admission registry after verification, and so is any distribution paid directly to a wallet. Yield that accrues as growth in the value of c-uWatt reaches whoever holds the share. Residents of the United States, Canada, China, Australia, Iran, North Korea, and sanctioned jurisdictions are excluded. [Eligibility and onboarding](/legal/eligibility-and-onboarding.md) covers the process and the gate.
Where are the actual legal documents?
Four PDFs govern: the Terms and Conditions, the uWatt Token Offering Document, the AML/ATF Policy Statement, and the Privacy Policy. Each is linked from [Legal and Compliance](/legal/introduction.md), with a page that walks through what it says and a table that maps its defined terms onto the names used in these protocol pages. Bermuda law governs, and disputes go to arbitration in Bermuda.
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