What are the risks of staking?

Staking crypto on Ndax involves risks, including price changes, periods when you can't access your crypto, rewards that aren't guaranteed, and penalties if a validator breaks network rules. This article summarizes the main risks. The Risk Statement and each asset's Crypto Asset Statement explain them in full. 

Crypto prices can go up or down while your assets are staked. The value of your staked crypto and your rewards in Canadian dollars can fall, sometimes quickly. 

Many networks have bonding and unbonding periods. During bonding, your crypto doesn't receive rewards. During unbonding, you can't sell or withdraw your crypto, and prices can change while you wait. Instant redemption, where offered, skips the unbonding period, but you don't receive rewards for the payout period in which you unstake. 

Rewards are not guaranteed. Advertised reward rates can change, and past rewards don't predict future rewards. Ndax may withhold rewards if a validator fails to perform. 

Ndax stakes your crypto with approved third-party validators. If a validator breaks network rules, the network may "slash" it, which means part of the crypto staked with it is permanently lost. A validator can also be "jailed", which means it temporarily or permanently stops receiving rewards.

Ndax has no obligation to compensate you for slashing penalties or missed rewards. To reduce these risks, Ndax reviews validators before approving them, spreads staked crypto across multiple validators where feasible, and seeks indemnities from validators where feasible. 

Proof-of-stake networks run on complex code. Software bugs, upgrades, or attacks on a network could affect your staked crypto. Ndax isn't responsible for losses caused by security breaches on a network. 

Changes to laws or regulations could affect Ndax's ability to offer staking, which could mean staking is changed or stopped. 

Staking depends on validators and other service providers. Outages, legal action, or other problems affecting them, or Ndax's own systems, can interrupt staking or cause missed rewards. 

Cash held in your Ndax account is protected by the Canadian Investor Protection Fund (CIPF) within the limits of its Coverage Policy. Crypto assets, including staked crypto, are not covered by CIPF and are not eligible for Canada Deposit Insurance Corporation (CDIC) protection. 

Is staking safe? Staking carries real risks, described above. Whether it's right for you depends on your own situation, and Ndax doesn't provide advice or recommendations.

Does Ndax protect me from slashing? No. Ndax takes steps to reduce the risk, but it has no obligation to compensate you for slashing penalties. 

• What is staking on Ndax and how does it work?
• Standard vs. Instant redemption
• Ndax Risk Statement 

Last updated: October 1, 2026. Reviewed by Ndax Customer Support

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