Staking Risks

What are the risks of staking BNB with Stader?

Using BNBx involves certain inherent risks, as with any form of digital asset investment. While Stader goes to great lengths to ensure the security of your staked assets, it's essential for users to be aware of these risks and make informed decisions when staking their assets. Here are some of the main risks that users should be aware of:

• Smart Contract Security Risk Like all DeFi protocols, Stader's BNBx protocol is governed by smart contracts, which could potentially contain vulnerabilities or bugs. To minimize this risk, Stader ensures that its smart contracts are open-sourced, rigorously audited, and covered by an extensive bug bounty program.

• Native Chain - Technical Risk The Ethereum and Binance Chain are still a technology under active development. While a large number of developers and researchers are working to ensure their stability and security, there's no guarantee that they are entirely free of errors. Vulnerabilities inherent to the Ethereum or Binance Chain could potentially affect the staking process and the value of BNBx.

• Wallet and Downstream Apps Wallets and third-party applications may be required to access staking. Users should independently evaluate the security of wallets and other third-party apps. Please note that Stader does not take responsibility for the security of the wallets or third-party applications used to access the staking solution.

• Exchange Rate Manipulation The BNBx-to-BNB exchange rate ensures users receive the correct amount of BNBx (when staking BNB) and BNB (when unstaking BNBx). If this rate is manipulated by malicious actors, BNBx holders could potentially withdraw significantly more BNB by unstaking through Stader or mint BNBx for far less BNB on the Stader dApp.

• Slashing Risk Binance Chain validators can face penalties, including the potential loss of all staked funds, if they fail to fulfill their duties. Stader, however, tries its best to mitigate this risk by staking across multiple reputable validators with diverse setups.