This approach emphasizes that Stable Channels does not aim to create a stable instrument that can be shorted or to outstrip the value of bitcoin. It is clarified that while developers have the capability to issue tokens against bitcoin collateral in a Stable Channel, this is not the primary intention behind the project.

The structure of Stable Channels is designed to operate independently with each channel existing in its own segregated Unspent Transaction Output (UTXO). The system envisages channels with varying entry and liquidation prices, different amounts of collateral, and diverse channel partners, aiming to mitigate risks such as a "run on the bank." The absence of a central banking entity and the emphasis on self-custody for users are highlighted as key features.

In the event of a market downturn leading to a break in the peg for some users across certain channels, the operational integrity of the entire system remains unaffected. Users left with bitcoin in self-custody under such circumstances could potentially end up owning more bitcoin than initially, presenting an inadvertent benefit of buying into the dip. The flexibility offered by Stable Channels allows users to transfer their bitcoin to exchanges, exchange it for centralized stablecoins, close their channel in cooperation or uncooperatively, or simply maintain their position undisturbed, offering resilience against catastrophic failures common in pegged tokens systems.