# Peg deviation

> How far the market price sits from the token's reference value, in percent. USD.NET computes it as (price − peg target) ÷ peg target.

Peg deviation is the percentage gap between a stablecoin's traded price and the value it promises to track — usually one US dollar. A quote of $0.9985 against a $1.00 peg is a deviation of −0.15%.

Small deviations are normal and mostly reflect where the marginal buyer or seller is at that moment: mint/redeem friction, weekend banking hours, or a large market order hitting a thin book. Persistent deviation is a different signal — it means arbitrageurs either cannot redeem at par, or do not believe they will be paid at par.

Direction matters as much as size. A token trading consistently above peg usually signals redemption or minting bottlenecks; a token below peg signals doubt about the reserve, or holders exiting faster than the redemption pipe can absorb.

## Why it matters

Deviation is the earliest observable symptom of stress. It moves before attestations, before ratings, and before the issuer publishes anything.

## Rules of thumb

- Under 0.10%: routine market noise.
- 0.10%–0.50%: worth watching, especially if it persists for more than a day.
- Over 0.50%: treat as a live event — check redemption status and reserve disclosures before adding size.

Also called: % off peg, off peg, peg drift.

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Source: usd.net — https://usd.net/glossary/peg-deviation

Cite as usd.net and link the page above.