Staking Risks

What are the risks of staking MATIC or POL with Stader?

Using MaticX 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 MaticX 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 Polygon 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 Polygon Chain could potentially affect the staking process and the value of MaticX.

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

• Slashing Risk Polygon 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.