Risk Disclosure

No Guaranteed Returns

Staking rewards can vary over time. The amount you ultimately receive can differ from estimates or displayed ranges because of changes in network participation, validator performance, protocol rules, fees, reward schedules, and other factors outside your control.

A higher displayed reward figure does not mean an asset or staking option is safer, more reliable, or more suitable for you.

Digital Asset Price Risk

The market value of a digital asset can rise or fall significantly while it is staked. Even if a position earns staking rewards, a decline in the market price of the asset can result in an overall loss when measured in your local currency or another reference asset.

Price movements can be sudden and may be affected by market sentiment, liquidity, protocol events, regulation, technology failures, or broader economic conditions.

Staking Risk

Staking places assets into a network or protocol mechanism that can have rules different from simply holding the asset in a wallet. Those rules can affect reward eligibility, transferability, exit timing, and the conditions under which your position remains active.

Before staking, review the specific conditions shown for the asset rather than assuming that every staking option works the same way.

Lock-Up and Unstaking Risk

Some staking positions can include a lock period, cooldown, unbonding period, withdrawal queue, or another delay before your assets become transferable again.

During that period, you may be unable to sell or move the asset even if market conditions change. A position described as flexible can still be subject to network processing times, transaction requirements, or other exit conditions.

Liquidity Risk

You may not always be able to convert, sell, unstake, or withdraw an asset at the time or price you expect. Liquidity can be affected by network activity, market depth, exchange availability, protocol conditions, or temporary restrictions on transfers.

Slashing Risk

Some proof-of-stake networks use slashing or similar penalties when validators fail to follow network rules or behave incorrectly. Where slashing applies, part of the stake associated with validator activity can be reduced.

Slashing rules are network-specific and should not be assumed to apply identically to every asset.

Validator Risk

Staking outcomes can depend on validator availability and performance where validators are involved. Downtime, misconfiguration, poor operation, penalties, or other validator issues can reduce rewards or affect the position.

Network Risk

Blockchain networks can experience congestion, outages, chain reorganizations, software bugs, delayed finality, high transaction fees, governance changes, or other disruptions. These events can delay transactions, affect staking operations, or temporarily prevent access to certain actions.

Protocol and Smart Contract Risk

Where a staking process depends on protocol software or smart contracts, bugs, design weaknesses, unexpected interactions, or exploitation can result in loss, delayed access, incorrect execution, or other unintended outcomes.

Security measures can reduce some risks but cannot eliminate all software or protocol risk.

Third-Party Risk

Some staking or blockchain activity may depend on wallets, networks, validators, infrastructure providers, block explorers, or other third-party services. Failure, interruption, policy changes, or security incidents involving those services can affect your experience even when Capital Chain itself remains available.

Wallet and Private Key Risk

You are responsible for protecting the wallet credentials and recovery information that control access to your assets. Anyone who obtains your seed phrase, private key, or wallet recovery phrase may be able to control the wallet and move the assets.

Capital Chain support will never ask you to provide a seed phrase, private key, or recovery phrase. Review wallet prompts carefully before signing any transaction.

Transaction Risk

Blockchain transactions can be irreversible after confirmation. Sending assets to the wrong address, approving the wrong amount, selecting the wrong network, or signing an unintended transaction can result in permanent loss.

Always review the wallet account, asset, amount, network, and action before approving a transaction.

Stablecoin and Depeg Risk

Stablecoins are designed to track a reference value, but that relationship is not guaranteed. A stablecoin can trade above or below its intended value, experience liquidity problems, or be affected by issuer, reserve, redemption, regulatory, or market events.

Fees and Cost Risk

Network fees and other applicable transaction costs can reduce the value of staking rewards or make smaller transactions uneconomical. Fees can change according to blockchain demand and the actions required to enter, manage, claim, unstake, or withdraw a position.

Technology and Cybersecurity Risk

Digital asset systems can be affected by phishing, malware, compromised devices, browser extensions, fake websites, wallet-draining approvals, infrastructure failures, and other cybersecurity threats.

Verify that you are using the official Capital Chain website and do not approve unexpected wallet requests. Security guidance is available on the Security page.

Regulatory and Tax Risk

Laws, regulations, reporting requirements, and tax treatment relating to digital assets and staking can change and can differ between jurisdictions.

You are responsible for understanding the rules that apply to you. Capital Chain does not provide jurisdiction-specific legal or tax advice through this Risk Disclosure.

Changes to Protocol Conditions

Networks and staking protocols can change reward formulas, validator requirements, lock conditions, transaction rules, governance parameters, or other operating conditions. These changes can affect an existing or future staking position.

User Responsibility

Before you stake, you should independently review:

• The asset you are staking.
• The displayed staking conditions.
• Any lock, cooldown, or withdrawal requirement.
• The reward information and whether it can change.
• Applicable network and platform fees.
• The wallet account and network shown before approval.
• The possibility of losing part or all of the value committed.