U-based contracts, as an important trading tool in the cryptocurrency market, provide investors with a unique advantage in investment and risk management. Its characteristic of being priced and settled in stablecoins reduces trading risks to a certain extent and enhances the flexibility and market liquidity of trading. However, the U-based contract market also faces many challenges such as market risk, leverage risk, platform risk, and policy risk. When participating in U-based contract trading, investors should fully understand its trading mechanism and risk characteristics, carefully assess their risk tolerance, develop a reasonable investment strategy, and choose a compliant and reliable trading platform.