Uphold Staking Program Terms and Conditions

These terms, in addition to our General Terms and Conditions and User Agreement, available on our website, govern your use of certain staking services (“Staking Services”) on the Uphold Platform. Note that Staking Services are not currently available in Canada, Japan, Singapore, or in other jurisdictions in which Uphold does not generally make its services available. If you are a resident of the UK, then the staking terms applicable to you can be found here. If you are a resident of the US, then the staking terms applicable to you can be found here. If you are a resident of the EEA, then the staking terms applicable to you can be found here. Capitalized terms not defined herein shall have the meaning given to them in the General Terms and Conditions or the User Agreement. By accessing and/or using the Staking Services, you agree that you have read, understood and accepted these Uphold Staking Program Terms in its entirety. 

The Staking Program

The Uphold Platform allows unrestricted users in good standing who reside in the geographical areas set forth below to stake certain cryptoassets held on the Uphold Platform in a third-party proof-of-stake network.  Staking involves delegating or locking certain eligible cryptoassets in these networks to support transaction validation and consensus processes on a blockchain or distributed ledger technology system (“Stake”, “Staking” or “Staked”).

When you purchase a cryptoasset that is eligible for Staking (an “Eligible Cryptoasset”), you may opt to participate in Uphold’s staking program (the “Staking Program”) whereby you may earn rewards (“Staking Rewards”) based on the amount of Eligible Cryptoasset Staked and as determined by the relevant Eligible Cryptoasset’s network. The cryptossets eligible for Staking shall be determined or changed at Uphold’s sole discretion at any time. 

You retain ownership of each Eligible Cryptoasset that is Staked, and each Staked Eligible Cryptoasset remains your property while Staked. 

A minimum amount of Eligible Cryptoassets may be required to participate in the Staking Program. Participation in the Staking Program is entirely voluntary, and you may stop participating at any time, subject to the terms set forth below.

Types of Staking Offered

Subject to geographical restrictions, Uphold offers two different types of Staking as part of its Staking Program - Boosted Staking and Flexible Staking - each as further described below. 

Boosted Staking

 Available In All Jurisdictions Where Uphold Currently Offers Services and Accepts New Accounts Except:

• Cyprus;

• Singapore; and

• In the United States: California, Louisiana and Washington State.

 Boosted Staking (“Boosted Staking”) is when a user opts to temporarily stake their Eligible Cryptoassets for a fixed period. While an Eligible Cryptoasset is staked in the Boosted Staking program, it cannot be traded. Further, there may be waiting periods (see below) between opting in and out of Boosted Staking, during which time you will not be eligible to receive Staking Rewards. 

When you opt-in to the Boosted Staking, there may be a period of up to three (3) business days before the amount you stake is eligible to receive Staking Rewards (“Preparation Period”). However, this period may vary depending on the specific blockchain network and staking conditions. You will be notified of any Preparation Period prior to Staking your Eligible Cryptoasset.

You will need to request for your Staked Eligible Cryptoassets to be un-Staked before they can be sold or transferred. Depending on the Eligible Cryptoasset, the network of the Eligible Cryptoasset may also require an “unbonding” period during which Staked Eligible Cryptoassets cannot be transferred, exchanged or withdrawn (“Unbonding Period”). The Unbonding Period varies, depending on the network of each Eligible Cryptoasset, and is typically set at up to thirty (30) days, but may be longer. During any Unbonding Period in which your Eligible Cryptoasset remains unable to be transferred, exchanged or withdrawn, you will not earn Staking Rewards. At the end of any applicable Unbonding Period, your Uphold Account will be credited with the relevant Eligible Cryptoasset and only then will it be available for transfer, exchange, or withdrawal.

Boosted Staking has minimum Staking requirements. Each Eligible Cryptoasset in Boosted Staking has a quantity of Eligible Cryptoassets that may be Staked per Staking transaction, per the table below. Uphold may, in its sole discretion, amend these limits.

Please view our FAQ for Boosted Staking for more information.

Flexible Staking

Available In All Jurisdictions Where Uphold Currently Offers Services and Accepts New Accounts Except:

• United Kingdom;

• European Economic Area; 

• Switzerland;

• Australia;

• Cyprus;

• Singapore;

• South Africa; and

• In the United States: California, Louisiana and Washington State.

Users in eligible jurisdictions will be enrolled in flexible staking (“Flexible Staking”) by default. You will be notified of Flexible Staking through a banner or icon at the bottom of your Uphold platform screen. If you do not opt-out of Flexible Staking, a portion of the Eligible Cryptoassets in your Uphold account will automatically be Staked. To preserve your trading flexibility, not all Eligible Cryptoassets will be Staked. You cannot choose which Eligible Cryptoassets to Stake. To exclude a specific Eligible Cryptoasset, you must opt-out of Flexible Staking entirely. 

Unlike Boosted Staking, there is no minimum balance required to opt-in to Flexible Staking.

In Flexible Staking, there is generally no preparation or bonding period and your Eligible Cryptoassets remain available to trade or withdraw instantly at all times.  

This instant liquidity of Flexible Staking typically results in lower Staking Rewards than in Boosted Staking. 

If you buy or sell Eligible Cryptoassets while Flexible Staking is enabled, your Staking Rewards will automatically reflect any such increase or decrease in Eligible Cryptoassets.

Please view our FAQ for Flexible Staking for more information.

Staking and Staking Rewards; Commission; Compounding

You will be eligible to receive Staking Rewards which are calculated based on the amount of Eligible Cryptoasset that you Stake and any accrued rewards that remain Staked with Uphold. Staking Rewards are rewards paid in the same Eligible Cryptoasset that is staked. Uphold may, in its sole discretion, limit the amount of Eligible Cryptoassets that you are able to Stake. 

As mentioned above, earned Staking Rewards will generally be lower in Flexible Staking than in Boosted Staking due to the instant liquidity feature of Flexible Staking.

Unless otherwise specified, the annualized percentage yield (“APY”) published on the Uphold Platform for a particular Eligible Cryptoasset is an estimated annualized historical rate based on the contemporaneous rewards offered by the relevant network of the Eligible Cryptoasset and the compounding of Staking Rewards earned, less our commission. This estimated rate may change over time. The actual Staking Rewards you receive may be more or less than this amount. Uphold does not guarantee that you will receive Staking Rewards.

For Boosted Staking, Uphold earns a commission of between 20% - 25% of the Staking Rewards which depends on the Staked Eligible Cryptoasset. This commission is used to pay ‘gas’ fees, third party fees, and infrastructure costs associated with Staking and the remainder is retained by Uphold. Uphold may change these published commissions without notice at any time, including after your Eligible Cryptoassets have been Staked.

You have no right to a Staking Reward unless and until the relevant Staking Reward is actually received by Uphold. Staking Rewards are delivered to your Uphold Account weekly (and in the case of Boosted Staking, after any Preparation Period has ended), however, Uphold maintains sole discretion as to when Staking Rewards are delivered to your Uphold Account. All Staking Rewards delivered to you will automatically be re-Staked if possible, and will then themselves be eligible to receive Staking Rewards after the applicable Preparation Period. If the Eligible Cryptoasset’s applicable network distributes any rewards in un-Staked form, Uphold will use commercially reasonable efforts to re-Stake those rewards. 

Slashing Fees

The relevant networks of Eligible Cryptoassets may charge “slashing fees” based on network downtime or if the transaction validator representing the Staked Eligible Cryptoassets incorrectly validates a transaction (“Slashing Fees”). 

Slashing fees may result in the loss of the Staked Eligible Cryptoasset and non-payment of the applicable Staking Rewards by the relevant networks of the Eligible Cryptoasset.

In the unlikely event that any Slashing Fees are charged based on the Staked Eligible Cryptoasset, Uphold will promptly reimburse you for any such amount charged 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) acts by a hacker or other malicious actor; or (v) any other events outside of Uphold’s reasonable control.

No Guarantees

UPHOLD MAKES NO GUARANTEES THAT ANY STAKING REWARDS WILL ACTUALLY BE EARNED, NOR THAT YOU WILL RECEIVE ANY PARTICULAR RETURN OVER TIME, INCLUDING ANY ESTIMATED APY THAT MAY BE DISCLOSED. UPHOLD DOES NOT GUARANTEE THAT THE STAKING PROGRAM WILL REMAIN AVAILABLE ON A CONTINUOUS BASIS OR FOR ANY PERIOD OF TIME FOR ANY USER OR IN ANY LOCATION. THE TERMS FOR STAKING MAY BE CHANGED BY THE NETWORKS OF THE RELEVANT ELIGIBLE CRYPTOASSETS WITHOUT UPHOLD’S CONSENT, AND SUCH CHANGES MAY, IN UPHOLD’S SOLE DISCRETION, BE PASSED ON TO YOU. UPHOLD DOES NOT GUARANTEE UNINTERRUPTED OR ERROR-FREE OPERATION OF THE STAKING SERVICES. UPHOLD RESERVES THE RIGHT TO SUSPEND, WITHDRAW, AMEND, OR TERMINATE THE STAKING PROGRAM IN ITS SOLE DISCRETION, INCLUDING DESIGNATING ON CEASING THE DESIGNATION OF A CRYPTOASSET AS AN ELIGIBLE CRYPTOASSET. IF THERE IS ANY DISRUPTION, SUSPENSION OR DISCONTINUANCE OF THE STAKING SERVICES, ANY STAKED ELIGIBLE CRYPTOASSETS MAY STOP GENERATING STAKING REWARDS AND YOU MAY NOT RECEIVE ANY (AND YOU MAY FORFEIT ALL OR SOME) STAKING REWARDS. UPHOLD HAS NO LIABILITY OR RESPONSIBILITY FOR AND EXPRESSLY DISCLAIMS ANY LOSS, LIABILITY OR DAMAGE THAT USERS MAY INCUR DIRECTLY OR INDIRECTLY IN CONNECTION WITH THE STAKING SERVICES, INCLUDING WITHOUT LIMITATION LOSS, LIABILITY OR DAMAGE ARISING DIRECTLY OR INDIRECTLY FROM INTERRUPTIONS, ERRORS OR DEFECTS IN THE STAKING SERVICES, THIRD PARTY DISRUPTIONS OF OR UNAUTHORIZED ACCESS TO THE STAKING SERVICES AND ANY SUSPENSION OR DISCONTINUANCE OF THE STAKING SERVICES.

Disclaimers

IN THE EXTREME EVENT OF A MAJORITY OF FLEXIBLE STAKING PARTICIPANTS SEEKING TO TRADE OR WITHDRAW ONE OR MORE STAKED ASSETS WITHIN A SHORT PERIOD OF TIME, UPHOLD CANNOT GUARANTEE THAT ASSETS STAKED IN THE FLEXIBLE STAKING PROGRAM WILL NOT BE SUBJECT TO AN UNBONDING PERIOD, AND YOU MAY NOT BE ABLE TO TRADE OR WITHDRAW SUCH ASSETS UNTIL THE END OF THE APPLICABLE UNBONDING PERIOD. IN SUCH AN EVENT, UPHOLD WILL USE ITS COMMERCIALLY REASONABLE EFFORTS TO HONOR ANY TRADE OR WITHDRAWAL REQUEST AS SOON AS POSSIBLE, BUT YOU ACKNOWLEDGE AND AGREE THAT DELAYS MAY OCCUR AND YOU MAY INCUR LOSSES AS A RESULT OF YOUR TEMPORARY INABILITY TO TRADE OR WITHDRAW. BY USING THE FLEXIBLE STAKING PROGRAM, YOU AGREE THAT UPHOLD WILL NOT BE RESPONSIBLE FOR ANY SUCH LOSSES.  

THE STAKING SERVICE IS PROVIDED ON AN “AS IS” BASIS. YOU AND YOUR AFFILIATES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR USE, OR OF NON-INFRINGEMENT OR ANY OTHER VIOLATION OF ANY THIRD PARTY INTELLECTUAL PROPERTY RIGHTS. WE AND OUR AFFILIATES DO NOT GUARANTEE OR MAKE ANY WARRANTY CONCERNING THE ACCURACY OR RELIABILITY OF THE STAKING SERVICE, AND DISCLAIM ANY AND ALL LIABILITY (WHETHER IN TORT OR CONTRACT OR OTHERWISE) FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL LOSS OR DAMAGE ARISING FROM ANY DELAY OR LOSS OF ACCESS TO THE STAKING SERVICE, OR OTHERWISE IN CONNECTION WITH THE STAKING SERVICE, STAKING REWARDS, OR STAKED CRYPTOASSETS. 

TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, AND NOTWITHSTANDING ANY OF THE FOREGOING, UPHOLD HAS NO LIABILITY UNDER THE STAKING PROGRAM. FOR THE AVOIDANCE OF DOUBT, THE WARRANTIES AND LIMITATIONS OF LIABILITY SET FORTH IN THIS SECTION ARE IN ADDITION TO, AND NOT IN PLACE OF, THOSE SET FORTH IN YOUR USER AGREEMENT. 

Taxes

You are solely responsible for reporting and paying any applicable taxes including, but not limited to, any capital gains tax, based on your Cryptoasset transactions on the Uphold Platform, including any Staking Rewards that you may earn.

Risks; No Advice; Program Changes

In addition to the risks related to investment in Cryptoassets generally (see our Crypto-assets Risk Overview), Staking poses additional risks. Cryptoassets are volatile assets and Eligible Cryptoassets that are Staked may lose value over time, including over the period that they are Staked (including during any Preparation or Unbounding Period, in the case of Boosted Staking), and so an Eligible Cryptoasset may earn Staking Rewards while Staked but still lose principal value. You may not liquidate your investment while the Eligible Cryptoassets are Staked. In Boosted Staking, you may not un-Stake an Eligible Cryptoasset until the end of the applicable Unbounding Period. The networks of Eligible Cryptoassets may change rewards that are offered, Preparation Periods (if applicable), or Unbounding Periods (if applicable) in their sole discretion. Do not Stake Cryptoassets in Boosted Staking unless you are able to bear the risk of waiting for any applicable Unbounding Period to end. You acknowledge that Uphold does not provide investment, legal, accounting or tax advice to you in connection with your activity on the Uphold Platform, including your participation in the Staking Program. You should consult with your own investment, legal, accounting and tax advisors prior to making any investment decision, including whether to participate in the Staking Program.

You agree and understand that Uphold may, in its sole discretion, change, suspend, discontinue, or terminate any aspect of the Staking Service, or its availability to you, at any time and without notice.