Understanding the Staking Agreement at OKX
Staking has become a popular way for users to earn passive income on their digital assets by participating in blockchain network validation or liquidity provision. This Staking Agreement outlines the terms under which OKX Middle East Fintech FZE ("OKX") provides access to staking services through its platform. It is designed to ensure transparency, clarify responsibilities, and inform users about the risks and operational mechanics involved in staking virtual assets.
This agreement supplements the OKX Terms of Service and should be read alongside them. Where conflicts arise between this document and the general Terms of Service, this Staking Agreement takes precedence.
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Scope and Applicability
What This Agreement Covers
The Staking Agreement governs all staking-related services offered by OKX through its Platform. These services allow users to participate in third-party staking protocols that operate either via proof-of-stake mechanisms or decentralized finance (DeFi) models.
Staking services are only available to users who have successfully completed Know Your Customer (KYC) verification and other onboarding requirements. Eligible participants include retail, qualified, and institutional investors.
Relationship with Terms of Service
This agreement does not replace the broader Terms of Service but complements them. Key provisions from the Terms of Service are incorporated by reference, meaning they apply here as if fully written into this document. However, in cases of inconsistency, the terms outlined in this Staking Agreement override those in the general Terms of Service.
Users confirm acceptance of these terms simply by using the staking features on the platform. By doing so, they acknowledge understanding and accepting the risks described herein—particularly those related to smart contracts, liquidity constraints, and potential loss of rewards.
Description of Staking Services
On-Chain Earn Protocols
OKX offers "On Chain Earn" staking opportunities that enable users to lock up virtual assets in third-party staking protocols in exchange for potential returns. These protocols fall into two main categories:
- Proof-of-Stake (PoS) Mechanisms: Operated by blockchain networks that issue virtual assets. Participants validate transactions and secure the network, earning staking rewards—often derived from transaction fees paid in native tokens.
- Decentralized Finance (DeFi) Mechanisms: Entirely governed by smart contracts. Users contribute assets to provide liquidity or lend within DeFi markets, earning yield based on protocol dynamics.
Importantly, OKX does not operate, own, or control any of these underlying staking protocols. The list of available protocols and supported assets is accessible directly through the platform interface.
Auto-Earn Feature
For convenience, OKX provides an Auto-Earn functionality. When enabled, idle digital assets in a user’s funding account—those not transacted within the last six hours—may be automatically allocated to eligible staking protocols.
Key points about Auto-Earn:
- Not enabled by default; users must opt-in.
- Subscription orders are processed periodically, not in real time.
- Once captured, orders cannot be canceled or edited.
- Users can opt out at any time, halting future subscriptions.
- Existing staked assets must be redeemed manually after opting out.
OKX may request users to switch to alternative staking protocols for future idle funds. Failure to respond by the specified deadline may result in automatic termination of Auto-Earn, without liability to OKX.
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Fees, Payments, and Rewards
Fee Structure
Access to staking services may incur fees set by OKX, which are published on the official website and subject to change with 90 days’ notice. Additionally:
- Protocol Fees: Charged directly by the staking protocol; vary over time and are outside OKX's control.
- Commissions: Applied to redeemed staking rewards as a percentage. Current rates are available on the platform and may be updated per applicable law.
- Network (Gas) Fees: Incurred during redemption processes. OKX pays these on behalf of users and may pass the cost along.
All payments—including fees and taxes such as VAT—are due immediately upon demand and may be deducted automatically from the user’s account.
Reward Accrual
Staking rewards begin accruing from the Reward Calculation Day, which may differ from the order placement date. Rewards are calculated daily based on a 365-day year and are typically distributed according to the rules of the specific protocol.
Rewards are paid either:
- In Liquid Staking Tokens (LSTs) for certain protocols, or
- In the original staked digital asset, unless otherwise specified.
LSTs represent a claim on staked assets but come with limitations: they may not be transferable off-platform, could lack secondary market liquidity, and might not maintain parity with native token value.
Redemption Process and Access
Standard vs. Fast Redemption
Users can redeem staked assets at any time, subject to the protocol’s lock-up period. Redemption timing depends on network congestion and varies across blockchains.
OKX offers a Fast Redemption feature where sufficient liquidity exists. While selected by default, it is not guaranteed and may be suspended without notice. Liquidity for fast redemptions comes from pooled user deposits—meaning a portion of your staked amount may support this service.
If Fast Redemption isn’t available, standard processing applies, requiring users to wait until the protocol releases funds.
Limited Access During Volatility
During periods of extreme market volatility, access to staked assets may be temporarily restricted. Users should plan accordingly and understand that immediate withdrawal is never assured.
Risk Disclosure
Beyond general risks outlined in the Terms of Service, staking involves specific hazards:
Smart Contract Risk
Staking relies entirely on smart contracts—self-executing code on blockchains. Bugs or vulnerabilities in these contracts or their underlying networks can lead to irreversible loss of funds.
Liquidity Risk
While staked, assets are locked and cannot be transferred or sold. Early withdrawal may trigger penalties defined by the protocol.
Slashing Risk
In proof-of-stake systems, validators who act maliciously or fail duties (e.g., validating invalid blocks) may face slashing—a penalty resulting in partial or full loss of staked assets. OKX will not compensate for such losses.
Reward Uncertainty
There is no guarantee of earning rewards. Payment amounts and rules are determined solely by the staking protocol and can change without notice. Past performance does not predict future returns.
Counterparty Risk
Since OKX facilitates access to third-party protocols rather than operating them, it performs only limited due diligence. Users bear full responsibility for assessing the safety and reliability of each protocol before participating.
Miscellaneous Provisions
Limitation of Liability
Staking services are provided "as is." OKX disclaims all liability for losses incurred through use of these services.
No Investment Advice
OKX does not provide financial or investment advice. Information shared about staking opportunities should not be relied upon for decision-making purposes.
Amendments and Termination
OKX reserves the right to amend this agreement following procedures outlined in the Terms of Service. The company may also terminate this agreement at its sole discretion without cause.
Termination of this agreement does not affect other contractual relationships with OKX, including the core Terms of Service.
Frequently Asked Questions (FAQ)
Q: Does OKX control the staking protocols I participate in?
A: No. OKX only provides access to third-party staking protocols. These are operated independently via smart contracts on their respective blockchains.
Q: Can I lose money while staking?
A: Yes. Risks include slashing penalties, smart contract failures, market volatility, and temporary loss of liquidity—all of which could result in financial loss.
Q: How are staking rewards calculated?
A: Rewards start accruing from the Reward Calculation Day, based on daily rates over a 365-day year. The actual rate depends on the protocol and can fluctuate.
Q: What happens if I want to stop using Auto-Earn?
A: You can opt out anytime. Future automatic subscriptions will cease, but existing staked assets must be redeemed manually.
Q: Are Liquid Staking Tokens safe to hold?
A: LSTs carry risks: they may not be tradable off-platform, could lose value relative to native tokens, or lack market demand.
Q: Is Fast Redemption always available?
A: No. It depends on available liquidity and may be suspended at OKX’s discretion without prior notice.
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