What are the risks of staking?

Below are some of the risks associated with staking along with how they are mitigated in the platform.

If a validator misbehaves or goes offline, a portion of the staked funds can be permanently taken by the network. We mitigate this by using institutional providers like Blockdaemon that offer slashing insurance. Blockdaemon currently has never had slashing occur to any of their validators.

In native staking, you cannot withdraw funds instantly. Most chains have a "waiting room" (unbonding period) that can last from a few days to several weeks. In times of high price volatility, the unbonding period could impact returns.

Staking rewards are paid in the native token. If the token price drops 20%, a 5% staking yield will not prevent a net loss in fiat terms.