At Blockchain.com, we offer different products that allow you to earn rewards on your crypto, including Staking Rewards.
While these products can generate returns, they also involve risks that may result in the loss of part or all of your assets. It’s important to understand these risks before participating.
Key Risks
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Slashing Risk (Punishment Losses): When you stake your digital assets, they may be at risk of penalties if a validator behaves incorrectly or fails to meet network requirements — even if it’s not your fault. This could result in a partial loss of your staked assets.
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Liquidity Risk (Locked Funds): When your crypto is committed to a rewards or staking program, it may be locked for a period of time and cannot be sold, traded, or withdrawn immediately. You may miss other market opportunities during this period.
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Variable Rewards (APY Not Guaranteed): Rewards rates are not fixed and may change depending on market conditions, network performance, or the strategy used. This means your earnings may be lower than expected or, in some cases, you could experience a net loss.
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Protocol Risk (Changing Network Rules): The networks or protocols that govern staking can change their rules, operations, or validation methods at any time, which could introduce new risks or reduce expected returns.
- Regulatory Risk (Legal and Compliance Changes): The legal status of staking and rewards products can vary across jurisdictions. Regulatory actions or new laws could impact your access to these products or the rewards you earn.
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