The system is designed to handle tokens without needing any person or company to manage it. Your funds are controlled by computer algorithms, not influenced by individuals or legal entities. The rules governing your funds are embedded in smart contract code, which has been reviewed by experts
If You're a Borrower (Trove Owner):
If the value of your collateral in the collateral token (ETH or TLOS) drops too low, your collateral may be used to compensate other users, but you'll keep your borrowed USDM.
If You're a Stability Pool Depositor:
Your deposited USDM may be used to repay debt from borrowers whose collateral was liquidated. While you're likely to receive more of the collateral token (ETH or TLOS) if liquidation occurs, there's a risk of losing value if the price of the native token (ETH or TLOS) decreases and you still hold the native token.
USDM Value and Stability:
The value of USDM isn't always exactly equal to the USD. It can vary slightly due to market conditions. For more details, you can refer to the "Redemption" article.