usdh.money Docs Enter app
No. 19 · Legal

Staking Risk Disclosure

Staking Risk Disclosure

Version 1.0 | October 23, 2026

PLEASE READ THIS RISK DISCLOSURE CAREFULLY BEFORE STAKING USDh.

STAKING INVOLVES SUBSTANTIAL RISK. YOU MAY LOSE ALL STAKED ASSETS. STAKING IS NOT A SERVICE OF HAMILTON DIGITAL ASSETS LIMITED. THERE IS NO GUARANTEE OF YIELD OR REWARDS. DO NOT STAKE MORE THAN YOU CAN AFFORD TO LOSE.

This Risk Disclosure describes the principal risks associated with staking USDh through the Staking Protocol to receive sUSDh. This disclosure is not exhaustive. You should seek independent professional advice before staking. By proceeding with staking, you confirm that you have read and understood these risks.

1. Yield and Reward Risk#

  1. Rewards distributed to the Staking Protocol are variable and not guaranteed. Rewards may be reduced, suspended, or eliminated entirely at any time without notice.
  2. The annual percentage yield (APY) displayed through the application interface is an estimate based on historical data. Actual returns may differ materially from displayed estimates. Past performance is not indicative of future results.
  3. Rewards may be zero or effectively negative (after accounting for transaction fees, slippage, and opportunity costs) during certain periods.
  4. No person or entity, including HDA, guarantees, promises, or commits to delivering any specific level of yield or return. Any expectation of profit from staking is at your own risk and discretion.

2. Smart Contract Risk#

  1. The Staking Protocol operates through smart contracts deployed on public blockchain networks. Smart contracts are experimental technology and may contain bugs, errors, or vulnerabilities that could result in the loss of your staked USDh.
  2. Even smart contracts that have been audited by reputable security firms may contain undiscovered flaws. An audit does not guarantee the absence of vulnerabilities.
  3. Exploits, hacks, or attacks on the Staking Protocol smart contracts could result in irreversible loss of all staked assets.
  4. Smart contract execution is deterministic and irreversible. Transactions cannot be reversed, cancelled, or modified once confirmed on the blockchain.
  5. Upgrades or changes to the Staking Protocol smart contracts through governance processes may introduce new risks or alter the behavior of the protocol in unexpected ways.

3. Market and Liquidity Risk#

  1. USDh may trade at a premium or discount to its target peg of 1 USD. A depeg event could reduce the value of both your staked USDh and any sUSDh you hold.
  2. There may be periods of low liquidity during which it is difficult or impossible to unstake, swap, or transfer sUSDh.
  3. The Cooldown Period for unstaking means your assets are locked and cannot be accessed during that period. Market conditions may change adversely during the Cooldown Period.
  4. sUSDh may trade on secondary markets at a price different from its proportional claim on staked USDh.

4. Counterparty and Structural Risk#

  1. Rewards distributed to the Staking Protocol may be sourced from reserve management activities conducted by third-party entities. The performance, solvency, and operational integrity of those entities may affect the availability and amount of Rewards.
  2. The Staking Protocol depends on third-party infrastructure, including blockchain networks, oracles, and data feeds. Failures or manipulation of this infrastructure could affect the protocol.
  3. Protocol Governance decisions, including changes to parameters, fees, and reward distribution, may adversely affect your staking position.

5. Regulatory Risk#

  1. The regulatory treatment of staking, yield-bearing tokens, and decentralized finance protocols is evolving and varies by jurisdiction. Changes in applicable laws or regulations may restrict or prohibit staking, affect the value or transferability of sUSDh, or require changes to the Staking Protocol.
  2. Staking may have tax implications in your jurisdiction. You are solely responsible for determining and satisfying your tax obligations. No tax advice is provided.
  3. Access to the Staking Protocol may be restricted from certain jurisdictions at any time without prior notice.

6. Technology and Operational Risk#

  1. Blockchain network congestion, outages, or consensus failures may delay or prevent staking and unstaking transactions.
  2. Wallet compromise, loss of private keys, or phishing attacks could result in unauthorized access to your staked assets.
  3. The Staking Interface may experience downtime, errors, or display inaccurate information. You should independently verify all data before making staking decisions.

7. No Recourse Against HDA#

  1. Hamilton Digital Assets Limited (HDA) does not operate the Staking Protocol and bears no responsibility for any losses arising from staking. You have no claim, right, or recourse against HDA in connection with staking.
  2. Recourse against Protocol Governance, protocol contributors, or other parties may be limited or unavailable given the decentralized and autonomous nature of the Staking Protocol.
  3. No deposit guarantee scheme, investor protection fund, or similar government-backed protection applies to staked assets or sUSDh.

8. Acknowledgement#

By staking USDh, you acknowledge and confirm that:

(a) You have read and understood this Risk Disclosure in full;

(b) You understand that staking involves substantial risk and you may lose all staked assets;

(c) Staking is not a service of HDA and HDA has no obligation or liability in connection with staking;

(d) There is no guarantee of yield, rewards, or any financial return;

(e) You have sought independent professional advice to the extent you consider appropriate; and

(f) You are making an independent decision based on your own assessment of the risks described herein.