Risk of Staking

Understand the risks of using the tool and of locking your tokens.

When you stake your assets, you assume a risk of volatility in prices and liquidity in order to obtain returns through the staking pool over a period of time.

Rewards are not always guaranteed as they are always subject to protocol changes and can also be affected by external factors.

External Attacks

There is an inherent risk that cyberattacks may occur.

In the event of a cyberattack that causes a loss to the staking pools, staked tokens may be drained unexpectedly as well.

Please note, the token staked in the capital pool are not entitled to any insurance coverage from PowaDAP (powadap.com) or Powabit Ecosystem (powabit.com)

Lockup Period

When you put your tokens into the staking contract, they are automatically placed in a locked state. During this period, the tokens will be subject to a lock for a certain number of days.

It will be possible to withdraw the staked tokens at any time with the "Unstake" action (previously you had to check the option to be able to withdraw at any time), but the rewards will only be obtained if you use the "Unstake + Rewards" action after the lockout period.

The withdrawn amount will be available at any time and it is not possible to manipulate the tokens deposited in the contract.

By default, when setting up your participation, the option to unlock at any time will be unchecked. Locking the tokens will give you the same security as a locker and will avoid unlocking the tokens in the wrong way and losing the rewards.

Liquidity and Volatility

The price of the assets can be volatile, you should consider this before investing in the pool, if you are not sure about locking your assets, you can select the option to withdraw at any time.

There is a risk that the assets will lose liquidity or value, resulting in financial losses.