> ## Documentation Index
> Fetch the complete documentation index at: https://docs.melt.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# FAQ

> Frequently asked questions about Melt Protocol

<AccordionGroup>
  <Accordion title="Is Melt a Market Maker?">
    No. Melt is an infrastructure protocol. The platform provides the venue and rails while independent professional market makers deliver liquidity.
  </Accordion>

  <Accordion title="What ensures 1:1 backing?">
    New Melt Assets can only be minted if the corresponding amount of collateral has been verified as deposited in the Source Vault. Users can audit on-chain verification anytime.
  </Accordion>

  <Accordion title="Why not use synthetic assets?">
    Synthetic assets risk liquidation. Melt uses physical backing — digitized physical assets rather than derivative positions — ensuring protocol insolvency protection.
  </Accordion>

  <Accordion title="Can I trade US stocks on weekends?">
    Yes. This is one of Melt's core value propositions. Markets operate 24/7/365, allowing users to respond to weekend news before traditional markets open.
  </Accordion>

  <Accordion title="Do I receive dividends?">
    Economically, yes. The platform uses an accumulating model where dividend value automatically reinvests into the token rather than triggering taxable distributions. See [Melt Assets — Total Return](/protocol/melt-assets#total-return-dividends).
  </Accordion>

  <Accordion title="Why trade on Melt instead of a CEX?">
    Three advantages: self-custody in your wallet, no KYC requirement, and seamless integration between spot and perpetual futures trading.
  </Accordion>

  <Accordion title="Why is the Smart Buy fee 0.30%?">
    The 0.30% fee is an all-in rate that covers exchange fees, bridge costs, gas, and slippage in one transaction. It is frequently lower than performing each step manually.
  </Accordion>

  <Accordion title="Can I bridge assets back?">
    Yes, bidirectionally. Use Smart Sell to receive destination-chain assets, or Direct Redeem to receive the underlying collateral.
  </Accordion>

  <Accordion title="Is Melt a stablecoin issuer?">
    No. Melt Assets are not algorithmic stablecoins. They are bridged balances — every token requires locked real-world collateral.
  </Accordion>

  <Accordion title="What happens if the price de-pegs?">
    Market forces maintain peg stability through arbitrage opportunities. Market Makers are incentivized to mint/redeem to correct deviations.
  </Accordion>

  <Accordion title="What is the counterparty risk for RWAs?">
    Users ultimately trust the asset issuer and regulated custodian. Melt functions as the technology transport layer, not the underlying guarantor.
  </Accordion>

  <Accordion title="Are the smart contracts audited?">
    Security is our priority. The core Lock & Mint contracts are forks of battle-tested standards, and the protocol undergoes independent security audits.
  </Accordion>
</AccordionGroup>