When you hold Digital Assets on Kullion Exchange, we have the option to “Stake” (called KEP) these assets in a third-party proof of stake network via staking services provided by Kullion or an affiliate or a third party.
Staking services may be made available to you by default for Digital Assets where staking functionality is available on Kullion. In the event that you have opted in, you can only opt-out when the staking plan duration(Lock up period) expires. Unless otherwise specified, if you opt-out of the Kullion Earn Program, you can opt back in at any time with immediate effect.
If you stake your assets with Kullion, or one of its affiliates, we will facilitate the staking of those assets on your behalf by acting as a transaction validator on the applicable network for the Digital Asset you stake. If Kullion or an affiliate successfully validates a block of transactions in that Digital Asset, you may earn a reward granted by that Digital Asset’s network. Your reward will be determined by the protocols of the applicable network. Kullion will distribute any earned rewards to you after receipt by Kullion. Some Digital Asset networks subject staked assets to “slashing” if the transaction validator representing those assets incorrectly validates a transaction. Kullion will use commercially reasonable efforts to prevent any staked assets from slashing; however, in the event they are, unless otherwise provided in this Agreement, Kullion will promptly replace your assets at no additional cost. Some Digital Asset networks require that a certain amount of staked assets be locked (restricted from sale or transfer) for a certain period of time while staking. Kullion may also have additional sale or withdrawal limitations for particular staked assets if you are opted-in to staking.
Rewards will be distributed to your account promptly after they are received by Kullion. Unless otherwise specified, the “Kullion earn program rewards rate” disclosed by Kullion for a particular Digital Asset is an annualized historical rate based on the staking rewards generated by Kullion in providing staking services to Kullion customers for that Digital Asset over the last ninety (90) days. This rate is an estimate and may change over time. KULLION 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 RATE THAT MAY BE DISCLOSED. KULLION DOES NOT GUARANTEE THAT THE STAKING PROGRAM WILL REMAIN AVAILABLE ON A CONTINUOUS BASIS OR FOR ANY PERIOD OF TIME.
KULLION RESERVES THE RIGHT TO SUSPEND, WITHDRAW, AMEND, OR TERMINATE THE STAKING PROGRAM IN ITS SOLE DISCRETION, INCLUDING DESIGNATING AN ASSET AS AN ELIGIBLE CRYPTOCURRENCY.
For certain Digital Assets, the underlying protocols offer stakers the ability to vote on matters related to the governance of protocol-level issues. Kullion may or may not support voting for such assets, and may cease supporting voting at any time at its discretion. Kullion will comply with your instruction to vote for your Digital Assets to the extent Kullion or its affiliate supports voting for such Digital Assets. In certain cases, Kullion may vote on your behalf where Kullion or the applicable protocol does not support delegated voting; in those instances, Kullion will vote with the protocol’s recommendation.
