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 HBAR tokens offers Archax custody clients a compelling commercial opportunity to generate returns while supporting a robust digital asset network.
Hedera staking provides yield on HBAR holdings from network fees. This creates a solid passive income stream on any HBAR assets.
Staking bolsters the overall Hedera public network which builds value for the ecosystem and HBAR tokens. The more decentralised nodes that validate transactions, the greater the security, speed, and fairness of the Hashgraph platform. Token holders want to see widespread network adoption and stability, which staking facilitates.
Staking with Hedera
Hedera staking allows HBAR token holders to earn rewards for participating in the security and consensus of the Hedera public network. By staking HBAR coins, users help validate transactions and secure the decentralised Hedera Hashgraph platform.
Hedera uses a staking model called "hStaking" which is different than traditional proof-of-stake systems. With hStaking, HBAR coins never leave a user's account or get locked up. This allows staked coins to remain liquid for transfers or transactions. Users simply set a desired amount of their HBAR balance to stake. The staked coins then generate points over time that make the account eligible for staking rewards.
When an account stakes at least 1 HBAR, it begins accruing stake points proportional to the amount staked. The more HBAR staked, the faster stake points accumulate. These stake points act as a proxy for the staked coins. Network nodes select accounts with high stake points to validate transactions and consensus operations.
Validating transactions earns staking rewards. The rewards come from network fees generated by each transaction. A portion goes to the treasury, while stakers split the rest based on their stake point balances. Rewards are dynamic based on network usage, but Hedera targets 3-12% annualized yields for stakers.
A key advantage of Hedera staking is users retain control of their HBAR coins instead of locking them away. They can withdraw from staking instantly without delays. Hedera also utilises proxy staking to promote decentralization by having many small stakers validate transactions, rather than just a few large holders.
Overall, Hedera staking provides HBAR token holders with an opportunity to earn passive income while securing a fast, sustainable public ledger. It represents a unique staking model that maintains liquidity and decentralization for stakers in the Hedera ecosystem.
Example
50,000(HBAR)
Your Holdings
2.50%
ROI
3.42(HBAR)
Daily Yield
104.17(HBAR)
Monthly Yield
1,250.00(HBAR)
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 (2.50%) 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 or failures in staking infrastructure can lead to slashing of staked funds or lack of access.
- Penalties - Violating staking policies can result in slashing of staked tokens as penalty.
- Changes to staking - Hedera governance decisions could alter staking yields, rules, or duration.
- Opportunity cost - Staked HBAR may underperform other investments during the lock up period.
- Network downtime - Technical issues on Hedera preventing consensus and transaction processing would halt earnings.
- Stake dilution - Continued HBAR token minting may dilute yields for stakers over time if rewards don't keep pace.
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.