Staking Risk Notice

1. INTRODUCTION

1.1 General Information
When you hold Digital Assets with Tangany (“we” or “us”), we give you the option to use these Digital Assets for staking purposes. This option, however, is limited to Digital Assets that are transferred in a “proof of stake” network.

In a proof-of-stake network, transaction validators are selected not by computing power (as in the proof of work) but through a formula based on the amount of the underlying digital asset allocated to the validation node's operator. 

Tangany will start by offering staking services for Ethereum (ETH), Solana (SOL), and Cardano (ADA), three leading proof-of-stake blockchains. Over time, additional assets will be included for staking. Tangany reserves the right to use third-party services for its staking operations, ensuring the best possible performance and security for the staking process.

1.2 Specific Asset Definitions

Ethereum (ETH): Ethereum’s goal is to become a global platform for decentralized applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime, and fraud. Ethereum staking involves locking your ETH on the Ethereum protocol, with rewards being distributed based on network participation and validation.

Solana (SOL): Solana is a high-performance blockchain known for its high throughput and low transaction costs. It is designed to facilitate decentralized applications and cryptocurrencies.

Cardano (ADA): Cardano is a blockchain platform focusing on security and scalability through its research-driven development approach. It aims to provide a balanced and sustainable ecosystem for cryptocurrencies.

2. STAKING & UNSTAKING

To participate in staking, Tangany will automatically stake your Eligible Digital Assets unless you inform Tangany otherwise. This process allows you to keep your assets liquid. For unstaking, clients declare their intent to unstake their assets by submitting the necessary data, see Section J.Staking. Staked Assets can be unstaked at any time without a lock-up period.

3. SLASHING

Staking involves risks such as penalties ("slashing") if validators fail to operate correctly. However, customers do not bear this risk as Tangany will compensate for any slashing losses, including those caused by malicious acts, network failures, or force majeure events. Tangany ensures that clients are protected from potential losses associated with slashing incidents

4. RISKS AND LIMITATION OF LIABILITY

Digital assets are highly volatile and can lead to significant losses. Regulatory changes can impact the staking product and the value of digital assets. Digital assets are susceptible to fraud, hacking, and cyberattacks. Staking relies on complex technology that may fail or have bugs. The value of digital assets depends on market demand. Rewards are not guaranteed and can vary based on validator performance and network conditions. However, Tangany will manage these risks and protect customers against potential losses.

5. TAXATION

The tax treatment of certain Digital Currency transactions is uncertain. It is your responsibility to determine any applicable taxes from these transactions. Users are solely responsible for reporting and paying taxes from staking through Tangany's services and all related transactions. Tangany does not provide investment, legal, or tax advice. You should conduct your own due diligence and consult your advisors before deciding whether to participate in staking and related transactions.