The On-Chain Earn service, provided by OKX, offers users the opportunity to earn rewards by staking their digital assets. This service operates under specific terms and conditions detailed in the On-Chain Earn User Agreement, which supplements the broader OKX Service Terms. It's essential for users to understand the mechanics, risks, and obligations associated with using this service.
What Is the On-Chain Earn Service?
The On-Chain Earn service enables users to stake their digital assets through various third-party staking protocols available on the OKX platform. Staking involves locking your assets for a period to support network operations, such as validation, in return for potential rewards. The service includes options for both manual staking and an automated feature called Auto-Earn.
Key Definitions
- Staking: The act of locking digital assets in a protocol to open a position, making them eligible for rewards.
- Rewards: The earnings users may receive for staking their assets. These are not guaranteed and can fluctuate.
- DeFi Protocol: A third-party, decentralized finance application where staking can occur.
- Expected Reward: An estimated rate or amount of potential earnings. The actual reward may be higher, lower, or equal to this estimate.
- Redemption: The process of closing a staking position and having the assets returned to your account.
- Quick Redemption: A feature that may allow for faster redemption without waiting for the standard unstaking period, subject to liquidity and protocol support.
- Service Fee: A fee OKX charges for providing the service, deducted from the rewards before they are distributed to the user.
- Auto-Earn: A feature that automatically uses idle assets in a user's Funding Account to create staking orders, based on pre-set criteria.
Eligibility and User Obligations
To use the On-Chain Earn service, you must meet certain criteria and agree to specific obligations.
User Confirmations
By using the service, you confirm that:
- You are legally permitted to use the service under the laws of your country or region.
- You have the necessary experience and risk appetite for trading non-principal-guaranteed digital assets.
- You are the legal and beneficial owner of all assets in your OKX account, and they are from a legitimate source.
- You will not use the service for any illegal activities, including money laundering, terrorist financing, fraud, market manipulation, or insider trading.
OKX's Rights
OKX has the right to:
- Hold, stake, and redeem your digital assets to provide the service.
- Act as a validator on staking protocols.
- Exercise any voting rights associated with your staked assets, which are delegated to OKX.
- Perform discretionary operations on the assets in your account to facilitate the service.
How to Use the On-Chain Earn Service
You can stake your assets either manually or by enabling the Auto-Earn feature.
Manual Staking
- Navigate to the On-Chain Earn product page on the OKX platform.
- Select your desired staking protocol and the amount of digital assets you wish to stake.
- The platform will display the expected reward and the minimum stake amount for the protocol.
- Once an order is placed, it generally cannot be canceled, revoked, or modified.
Using Auto-Earn
- The Auto-Earn feature is disabled by default. You must actively choose to enable it.
- When enabling Auto-Earn, the platform will show you the staking protocols available for each digital asset in your Funding Account.
Idle assets that meet the following criteria may be automatically used for staking:
- No transactions (deposits, withdrawals, transfers, or trades) in the last six hours.
- The asset is supported by the service.
- The amount exceeds the minimum and does not surpass the maximum Auto-Earn limit, as displayed on the platform.
- OKX scans accounts periodically to create orders. You cannot cancel an order once it is created, but you can disable the Auto-Earn feature to stop future orders.
- OKX may require you to agree to switch to a different staking protocol for future Auto-Earn orders. If you do not agree by a specified deadline, OKX may terminate your Auto-Earn feature.
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Earning and Redeeming Rewards
Understanding how rewards are calculated and how to get your assets back is crucial.
Reward Calculation
- Rewards begin accruing from the "Reward Calculation Date," which is when your assets are successfully staked on the protocol.
- Rewards are calculated daily based on a 365-day year.
- The reward rate is determined by the staking protocol and can change frequently.
- For Ethereum staking, rewards accumulate as BETH tokens.
- For other protocols, rewards typically accumulate in the staked asset itself.
- If an order is unsuccessful, no rewards are accrued.
Redeeming Your Assets
- Submit a redemption request on the OKX platform.
- Partial redemptions may not be allowed; you might need to redeem the entire order.
- Rewards stop accruing for the assets once a redemption request is submitted.
- Requests cannot typically be canceled or modified.
- The time it takes for assets to be returned to your account varies significantly based on the protocol and market conditions. It could take days or weeks.
- The Quick Redemption feature is not guaranteed and depends on liquidity pools funded by other users' orders. OKX can suspend this feature at any time.
Fees, Limits, and Service Modifications
- OKX charges a Service Fee, which is disclosed on the platform and deducted from your rewards before distribution.
- OKX reserves the right to introduce, adjust, or remove any staking or redemption limits at its discretion.
- OKX may suspend, cancel, or terminate the service or your access to it for various reasons, including legal compliance or suspicious activity.
- OKX can add or remove staking protocols from the service at any time.
Understanding the Risks
Using the On-Chain Earn service involves significant risk. You must be aware and accept these risks before participating.
- Asset Loss: The value of digital assets is highly volatile, and you could suffer a total loss.
- No Reward Guarantee: Expected rewards are estimates only. Actual rewards can be higher, lower, or zero. OKX does not promise any rewards.
- Illiquidity and Lock-Up: You may be unable to sell or trade your staked assets immediately. Redemption can take a long time, during which the asset's value could drop significantly.
- BETH Token Risk: If you stake ETH, you may receive BETH tokens. These tokens may have no market, be illiquid, or not hold a 1:1 value with ETH.
- Technical and Third-Party Risks: Service interruptions, hacking, computer viruses, or failures at OKX or third-party protocols could lead to loss of access or assets.
- Regulatory Risk: Changes in laws or government actions could impact the service and your assets.
- Protocol Risk: The staking protocols are third-party systems. Their failure or a flaw in their smart contracts could result in a loss of funds.
OKX is not liable for any losses arising from these risks, including direct, indirect, or consequential damages.
Technical Disclaimer and Security
- OKX may suspend service for maintenance or upgrades and will move assets as necessary to perform these tasks.
- While OKX strives for accuracy, it does not guarantee that all information on the platform is current, complete, or error-free.
- You are responsible for your internet connection and compatible hardware. Service may be interrupted due to factors outside OKX's control.
- Despite security measures, unauthorized access, hacking, and data loss remain possible. You agree to bear the risk of security breaches.
Frequently Asked Questions
What is the difference between manual staking and Auto-Earn?
Manual staking requires you to actively select a protocol and amount each time you want to stake. Auto-Earn is a passive feature that automatically stakes idle assets from your Funding Account based on the rules you agreed to when enabling it.
Can I cancel a staking order once it's placed?
Generally, no. Once a staking order (either manual or via Auto-Earn) is successfully placed, it cannot be canceled, revoked, or modified. You must wait until the redemption period is over or submit a redemption request, which itself cannot be canceled.
How are the rewards for my staked assets calculated?
Rewards begin accruing once your assets are successfully staked on the protocol. They are calculated daily based on the prevailing reward rate of that protocol. The rate can change frequently. Rewards are distributed after OKX deducts its Service Fee.
Why is there a long waiting period to get my assets back after redeeming?
The waiting period, often called an "unbonding period," is mandated by the underlying blockchain protocol, not OKX. This is a security feature of proof-of-stake networks. OKX cannot speed up this process unless the Quick Redemption feature is available and has sufficient liquidity.
Is my principal guaranteed when I use On-Chain Earn?
No. On-Chain Earn is a non-principal-guaranteed product. The value of your staked digital assets can fluctuate, and you could lose some or all of your initial investment. Rewards are also not guaranteed.
What happens if OKX discontinues a staking protocol I'm using?
OKX reserves the right to remove staking protocols from the service. If this happens, OKX will likely initiate a process to redeem users' assets from that protocol. The terms of this process would be communicated to affected users.
Liability, Indemnification, and Other Terms
- Liability: OKX's liability is limited as per its Service Terms. It is not liable for losses caused by service suspensions, system failures, force majeure events, third-party actions, or changes in law.
- Indemnification: You agree to indemnify and hold harmless OKX, its affiliates, and their representatives from any claims or losses arising from your use of the service or violation of this agreement.
- Governing Law and Dispute Resolution: This agreement is governed by the laws of England and Wales. Any disputes must first be submitted to mediation at the Hong Kong International Arbitration Centre (HKIAC). If unresolved, disputes will be settled by binding arbitration at HKIAC under its rules.
- Changes to the Agreement: OKX can change this agreement unilaterally at any time. Continued use of the service after changes are posted constitutes acceptance of those changes.
- Assignment: You cannot assign your rights under this agreement without OKX's written consent. OKX can assign its rights without your consent.