A dollar peg describes the value a stablecoin is designed to track. To assess a sale or redemption, check the execution price and whether you can redeem directly through the issuer.
Target price and sale proceeds
For a fictional example, take a token that targets $1. Assume a sale of 1,000 tokens actually executes at $0.997 per token. The gross proceeds would be $997, before any applicable costs. The number of tokens multiplied by the peg would be $1,000, but that is not the price used in this example’s sale.
If this fictional sale also carries a 0.1% fee deducted from the dollar proceeds, the fee is $997 × 0.001 = $0.997. That leaves $996.003, or about $996.00, before any separate withdrawal or currency-conversion costs.
The $3 difference from the $1 peg is a price difference, separate from the trading fee. The token, price and 0.1% fee are invented for this example. For a real receipt, check each fill, the fee asset and the platform’s rounding rules.
For a worked order-book example, see how market-order execution prices are calculated. It separates price differences from trading fees.
https://www.binance.com/en-AE/square/post/385974115205396
Returning to the peg is not the same as breaking even
In a separate fictional example, assume you buy 1,000 tokens at $1.01 and later sell all 1,000 at exactly $1.00. The purchase cost is $1,010 and the sale proceeds are $1,000. The price-only loss is $10, about 0.99% of the purchase cost, before fees. The sale price matches the token’s target, but it is still below the price paid.
A return to the peg and a return to your break-even price are different outcomes. Include the actual purchase price and costs on both trades when checking the result. This example assumes both trades execute at the stated prices; it does not predict a recovery or recommend buying a deviation.
Backing and access to cash are different checks
Stablecoins use different designs. Some rely on reserve assets, some on crypto collateral, and some on algorithmic mechanisms. A label such as “dollar-backed” should lead to a closer look at what backs the token and how the mechanism works.
If an issuer offers direct redemption, read the current process: who can use it, what verification is required, whether minimums or charges apply, and how payment is delivered. Selling through a market and redeeming with an issuer are different routes. Do not assume every stablecoin or every holder has the same route.
A statement about reserve value also does not answer how quickly those assets can be converted into cash when many people want to exit. Binance Academy’s depegging explainer discusses how a shortage of liquid reserves can matter even when other backing assets remain.
A small deviation does not tell the whole story
An observed price below the target is a reason to investigate the mechanism and current information. It does not, by itself, establish why the deviation happened, how long it will last, or whether the token will return to its target. Buying solely because “it must go back to $1” assumes an outcome that has not been established.
When reading a stablecoin screen, check the reference value it aims to track, the market price you can actually transact at, and the redemption conditions that apply to you separately.
This note explains terms and a fictional calculation. It does not recommend buying, selling or holding a stablecoin.
Background on peg mechanisms and liquidity risk: Binance Academy — Why Do Stablecoins Depeg?
https://www.binance.com/en/academy/articles/why-do-stablecoins-depeg