Don’t invest unless you’re prepared to lose all the money you invest. This is a high risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Staking Ethereum offers investors the ability to earn rewards with their ETH whilst also contributing to the strength of the network, the second largest blockchain network only behind Bitcoin.
Those who decide to stake are agreeing to lock up their Ethereum as collateral for Archax’s validators to use. Whilst the collateral needs to be “locked up”, it does not leave the control of Archax’s institutional custodian. This enables Archax to ensure complete oversight of that ETH and the reward it is earning, as well as the ability to unstake it whenever the investor pleases.
Staking with Ethereum
Ethereum’s transition from Proof of Work (“PoW”) to Proof of Stake (“PoS”) not only makes the network 99.5% more environmentally friendly, but ETH investors can now earn yield on their ETH holdings.
Investors who decide to either put idle ETH to use, or purchase ETH via Archax’s exchange or OTC desk to pursue the same staking activities, will earn incremental amounts of ETH every day. This yield will be paid out directly to the investor’s wallet, safeguarded via Archax’s institutional custodian. Archax performs daily reconciliations on all its Ethereum validators and the ETH they earn and provides clear reporting for investors.
No technical expertise is needed for this, nor is there any need for the investor to engage with any of the validation services.
Example
1,056 (ETH)
Your Holdings
5.50%
ROI
0.16(ETH)
Daily Yield
4.84 (ETH)
Monthly Yield
58.08 (ETH)
Yearly Yield
Fees
Archax charges 10% of the yield for its services, leaving investors with the remaining 90%.
Staking risks
Please note the advertised Rate of Return (5.50%) may not be achieved. The following points highlight circumstances in which this may be the case in addition to explaining further risks associated with staking:
- Technical issues - Bugs, failures, or network disruptions could cause loss of access to staked ETH or slashing of funds.
- Locked funds - Staked ETH will be locked up for days or months, depending on network congestion
- Penalties - Violations of protocol can result in slashing of staked ETH as penalties.
- Changes to protocol - Ethereum improvement proposals may alter staking yields, minimums, or duration of lock ups.
- Opportunity cost - ETH staked may underperform other investments during lock up period.
- Stake dilution - Issuance of more ETH could dilute staking yields over time.
Risk Summary
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
- 1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
- 2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn’t protect this type of investment because it’s not a ‘specified investment’ under the UK regulatory regime – in other words, this type of investment isn’t recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker here.
- Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
- 3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
- 4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
- 5. Don’t put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.
If you are interested in learning more about how to protect yourself, visit the FCA’s website here. For further information about cryptoassets, visit the FCA’s website here.