- What is Staking?
- MAX offers two types of staking:
- On-chain staking: Users authorize and transfer amounts to MAX for staking and participate in the Proof-of-Stake protocol. The staking activities yield staking reward to incentivize users’ participation secure the blockchain.
- Off-chain staking: MAX Token is supported for off-chain staking at the moment. To learn more, please visit https://support.maicoin.com/en/support/solutions/32000023040.
- Please note: the following FAQs are for on-chain staking specifically.
- MAX offers two types of staking:
- What is Proof of Stake (PoS)?
- PoS is another consensus mechanism, the method by which blockchain confirms transactions and prevents the problem of double spending.
- PoS is believed to expend significantly less energy compared to Proof of Work (PoW).
- Proof-of-Stake involves validators verifying additional blocks if they have greater stakes locked up on the blockchain.
- What are the risks?
- MAX maintains rigorous risk management protocols to protect users’ assets. Still, staking entails risks, including but not limited to smart-contract risks, security risks, market risks, operational risks as validators and the fluctuation of yield; these risks could cause all or partial loss of your staking assets. Please assess your risk tolerance before staking your cryptocurrencies.
- How to stake/unstake?
- Only MAX App is supported for on-chain staking/unstaking.
- To stake: Navigate to MAX App at “MAX” tab > enter “Staking” > choose the currency to stake > input the staking amount > complete 2FA > wait for staking request to be processed and accruing yield.
- Please note: Once stake, cancellations are not allowed during the “staking” status. Please carefully assess your liquidity needs before proceeding to stake any assets.
- To unstake: enter “Staking” > choose the currency to unstake > enter “Unstake” > choose the stake you’d like to unstake (limited to the stakes in “Accruing Gain” status) > complete 2FA > wait for the request to be processed, and funds will return to your spot wallet.
- Actual stake/unstake waiting time
- Staking/unstaking processing time will vary based on the blockchain conditions. The staking info page's real-time values are accurate for corresponding actions taken at the moment.
- Example
- At period 1, if the user stakes their tokens, and the info page at that time shows
- the staking processing time is approximately 3 business days and
- the un-staking processing time is approximately 3 business days.
- At period 2, when the user unlocks their tokens several days later, the page shows
- the staking processing time is now ~ 5 business days and
- the un-staking time is now ~ 5 business days due to network conditions.
- In this case, the number of business days required for un-staking initiated at period 2 is 5 workdays.
- At period 1, if the user stakes their tokens, and the info page at that time shows
- Options for staking reward currencies:
- Users can select MAX Token or in-kind (as staked) currencies for staking rewards.
- If reward currency is MAX Token, the exchange rate used will be the time-weighted price quoted on the platform. In addition, MAX reserves the right to modify the exchange rate methodologies elected without prior notice.
- Fee
- We charge users a portion of the yield generated from on-chain staking. For instance, if the fee rate is 15% and users are entitled to 10 Token in staking reward, the actual amount paid will be 10 Token * (1-10%) = 9 Token.
- If you select MAX Token as the staking reward currency, the fee rate is 0%!
- Expected annual return
- The expected annual return per currency is subject to changes anytime without prior announcements. You can visit the main page of staking service for the latest APR (annual percentage rate) from MAX App.
- Minimum and maximum limits of staking
- Please refer to the staking interface on MAX App for the minimum amount per staking currency.
- MAX implements risk control on the overall staking positions. We may stop accepting new staking requests or terminate staking service for certain currencies and return the funds to users.
- Eligibility
- Lv1 or Lv2 users are eligible to stake with MAX and receive staking rewards.
- Realized rewards v.s. expected rewards
- Yield shown on the app reflects the possible range of APR. This does not guarantee the realized rewards will equate expected rewards deduced from expected APR. Expected APR is variable and subject to changes anytime without prior notice. Please visit MAX App (https://go.maicoin.com/max) for the latest APRs.
- Calculations of staking rewards (with in-kind currency as an example)
- Principal for calculations: we calculate each user’s rewards proportional to staked amount and time.
- Stake age is usually updated every morning for every 24hrs elapse.
- Disbursement of rewards: Disbursement cycle is specified on the staking page and may vary by currency. Rewards are paid at around 1pm (UTC+8), subject to the actual processing time. History can be found under “Reward History”, titled as “Staking Reward”.
- Sample calculations
- A user created a stake of 100,000 Token, assuming the stake age is 8 hours with an expected annual return of 3% ~ 6% with no fee charged, the users are likely to receive 2.73972602 ~ 5.47945205 Token (rounded down to the nearest 8 decimal places supported by the token).
- 100,000 * 3% * 8 / (365*24) = 2.73972602 (rounded down to the nearest 8 decimal places).
- 100,000 *６% * 8 / (365*24) = 5.47945205 (rounded down to the nearest 8 decimal places).
- If staked for a year, assuming APR remains at 1%, the user will collect 100,000+ (2.73972602 * 365) = 101,000 Token with rewards and principal in total.
- Stakes are qualified for rewards when they are in “Staked” state. Other statuses, such as “Staking” and “Unstaking” are not eligible for reward calculation as they are still within the processing time window.
- A user created a stake of 100,000 Token, assuming the stake age is 8 hours with an expected annual return of 3% ~ 6% with no fee charged, the users are likely to receive 2.73972602 ~ 5.47945205 Token (rounded down to the nearest 8 decimal places supported by the token).
- Decimal precision for calculations
- If the distributed staking reward is less than the minimum decimal precision supported by the token, the actual amount received by the users will be zero. Simultaneously, the days of yield payable will be reset to zero.
- Staking’s effect on ROI
- Staking/unstaking does not affect the average cost.
- The rewards generated will be considered position obtained with zero average cost. Thus, you can expect the average cost of the staked currency will decrease over time with more rewards received.
- Term of Use of on-chain staking:
- Mandarin version：https://assets.maicoin.com/max/staking_service_zh.pdf
- English version：https://assets.maicoin.com/max/staking_service_en.pdf
MAX Exchange / MaiCoin