# SD rewards

### What is SD collateral?[​](https://www.staderlabs.com/docs-v1/Ethereum/Node-operator/permissionless-node-operator/ethx-rewards-for-permissionless-node-operators/sd-rewards#what-is-sd-collateral) <a href="#what-is-sd-collateral" id="what-is-sd-collateral"></a>

The SD token plays a vital role in the Stader platform, serving as the governance token. It allows the Stader community to actively participate in shaping the platform's direction. Therefore, to add a validator to the nodes on the Stader Network, permissionless node operators are required to bond SD collateral for each validator. In return, the node operators receive SD rewards for their bonded SD collateral.

**The minimum and maximum limits for SD collateral when adding a validator are as follow:**

* Minimum SD collateral: 0.4 ETH worth of SD (10% of your ETH bond) per validator.
* Maximum SD collateral: 8 ETH worth of SD (200% of your ETH bond) per validator.



### SD collateral rewards[​](https://www.staderlabs.com/docs-v1/Ethereum/Node-operator/permissionless-node-operator/ethx-rewards-for-permissionless-node-operators/sd-rewards#sd-collateral-rewards) <a href="#sd-collateral-rewards" id="sd-collateral-rewards"></a>

* Each operator needs to have SD collateral deposited against each of their validator.
* Approximately every 28 days, a Merkle tree will be generated to allocate SD rewards to each node operator. Node operators can claim their SD rewards by following the steps provided in this link: [**Click here**](claim-el-and-sd-rewards)

{% hint style="warning" %}
### Important note

* SD collateral snapshots are taken daily at a random block. Therefore, due to price fluctuations if the SD collateral bond value for your validators drops below 0.4 ETH worth of SD per validator, then the node operators need to top-up the SD collateral else they won't receive SD rewards on their bonded SD for that day.
* We recommend maintaining an SD collateral buffer (above the 0.4 ETH worth of SD per validator limit) to avoid any reward loss due to price fluctuations.
* You can deposit more than 8ETH worth of SD per validator as collateral, but any SD collateral exceeding the 8 ETH limit per validator will not earn SD rewards.
* For SD collateral withdrawal, the node operators can withdraw any collateral exceeding the 200% SD collateral limit (8 ETH worth of SD per validator). To withdraw the entire SD collateral, the node operator will need to exit the validators.
{% endhint %}



### SD contract address

* **SD token address (Mainnet) :** [0x30D20208d987713f46DFD34EF128Bb16C404D10f](https://etherscan.io/address/0x30D20208d987713f46DFD34EF128Bb16C404D10f)
* **SD token address (Testnet):** [0x0406f539f24Be69baa8b88ED6eABEdb7b3cfdc60](https://etherscan.io/address/0x0406f539f24Be69baa8b88ED6eABEdb7b3cfdc60)
