When you hold Digital Assets on Armoney you may be given the option to “stake” these assets in a third party proof of stake network via staking services provided by Armoney or an affiliate or a third party. Please visit our staking information page for further details on how proof of stake works.
1.1. Staking Service is Optional
Staking services may be made available to you by default for Digital Assets where staking functionality is available on Armoney. IN THE EVENT YOU ARE OPTED IN, YOU ARE NOT REQUIRED TO CONTINUE TO STAKE WITH ARMONEY AND YOU CAN OPT-OUT OF ANY DEFAULT ARMONEY STAKING SERVICES AT ANY TIME THROUGH THE SETTINGS PAGE IN YOUR ACCOUNT. Unless otherwise specified, if you opt-out of staking services, you can opt back in at any time with immediate effect.
1.2. The Service; Rewards; Commission; Limitations
If you stake your assets with us, Armoney, or one of its affiliates, will facilitate the staking of those assets on your behalf by acting as a transaction validator on the applicable network for the Digital Asset you stake. If Armoney or an affiliate successfully validates a block of transactions in that Digital Asset, you may earn a reward granted by that Digital Asset’s network. Your reward will be determined by the protocols of the applicable network. Armoney will distribute any earned rewards to you after receipt by Armoney, minus a 25% commission. Some Digital Asset networks subject staked assets to “slashing” if the transaction validator representing those assets incorrectly validates a transaction. Armoney will use commercially reasonable efforts to prevent any staked assets from slashing; however, in the event they are, unless otherwise provided in this Agreement, Armoney will promptly replace your assets at no additional cost. Some Digital Asset networks require that a certain amount of staked assets be locked (restricted from sale or transfer) for a certain period of time while staking. Armoney may also have additional sale or withdrawal limitations for particular staked assets if you are opted-in to staking.
1.3. No Guarantee of Rewards
You have no right to a reward until it is received by Armoney. Rewards will be distributed to your account promptly after they are received by Armoney. Unless otherwise specified, the “staking rewards rate” disclosed by Armoney for a particular Digital Asset is an annualized historical rate based on the staking rewards generated by Armoney in providing staking services to Armoney customers for that Digital Asset over the last ninety (90) days. This rate is an estimate and may change over time. ARMONEY DOES NOT GUARANTEE THAT YOU WILL RECEIVE ANY STAKING REWARDS, INCLUDING THE STAKING REWARDS RATES.
1.4. Governance and Voting
For certain Digital Assets, the underlying protocols offer stakers the ability to vote on matters related to the governance of protocol-level issues. Armoney may or may not support voting for such assets, and may cease supporting voting at any time in its discretion. Armoney will comply with your instruction to vote your Digital Assets to the extent Armoney or its affiliate supports voting for such Digital Assets. In certain cases, Armoney may vote on your behalf where Armoney or the applicable protocol does not support delegated voting; in those instances, Armoney will vote with the protocol’s recommendation.
1.5. Ethereum Staking
In addition to the terms outlined above, the following terms apply to staking your ETH through the Armoney staking services. In the event of a conflict between the terms contained in this section and anything else in this Agreement, the terms in this section will govern:
- Eligibility - Users who wish to stake ETH through Armoney must meet certain requirements, as set forth here. These requirements are subject to change.
- Lockup Period - If you choose to stake your ETH, your ETH will be pledged for staking and will become locked on the Ethereum protocol until Phase 1.5 of the Ethereum network upgrade is completed. Armoney has no control over the duration of or end date for the lockup period, which will ultimately be determined by the success of the update to the Ethereum network. Unlike other staking services provided through Armoney, you will be unable to opt out of ETH staking once you’ve staked your ETH. Armoney will not refund or replace any ETH you wish to unstake. You will not be able to trade, transfer or otherwise access your staked ETH or ETH staking rewards during the lockup period.
- No Guarantee of Success of Network Upgrade - Armoney makes no guarantees that the upgrade to the Ethereum network will be successful, and you understand that if the network upgrade ultimately fails, you may lose all, or a portion of, your staked ETH. Armoney will not be responsible for any ETH lost due to a network upgrade failure.
- Ethereum Staking Rewards - Any rewards earned while staking your ETH through Armoney will, unless otherwise stated, remain locked onchain until Phase 1.5 of the Ethereum network upgrade is completed. ETH staking rewards reflected in your account prior to the completion of Phase 1.5 of the Ethereum network upgrade are an estimate based on a combination of reward rates and the period of time for which you’ve staked your ETH (minus any Armoney fees). Rewards will be reflected in your account, but may not be actually accessible until the end of the lockup period.
- Slashing Penalties - Staking ETH means your staked assets can be subject to “slashing” by the Ethereum network if the transaction validator representing those assets incorrectly validates a transaction. Armoney will use commercially reasonable efforts to protect against slashing incidents: however, in the event of slashing, Armoney will replace your assets so long as such penalties are not a result of: (i) protocol-level failures caused by bugs, maintenance, upgrades, or general failure; (ii) your acts or omissions; (iii) acts or omissions of any third party service provider; (iv) a force majeure event as defined in Section 9.6 of the User Agreement; (v) acts by a hacker or other malicious actor; or (vi) any other events outside of Armoney’s reasonable control.
- Liquidity - Armoney may offer you the ability to exchange or sell your staked ETH prior to the completion of Phase 1.5 of the Ethereum network upgrade. Armoney does not guarantee that the offering of any such option will result in a successful exchange or sale, and Armoney will not backstop or otherwise intervene to guarantee liquidity. In the event that you take advantage of any offered ability to exchange or sell your staked ETH, Armoney does not guarantee the value of your ETH principal or related rewards. Accessing your locked ETH may result in a loss of any rewards accrued until that point. Armoney is not responsible for any decrease in the value of your staked ETH principal or any rewards associated with allowing you the ability to exchange or sell your staked ETH.