Pera Wallet Staking

Risks

Using Pera Wallet Staking comes with risks that you should understand before you use the offering. We are not required to provide the information set forth below but are doing so in order to encourage you to educate yourself about the risks of protocol staking generally and using this offering more specifically. You must determine for yourself whether it makes sense for you to participate in protocol staking in light of the risks, and to understand that you, and you alone, accept responsibility for any losses that may occur, regardless of how they occur. The risks set out below are not comprehensive nor discussed in depth. Use this information as the starting point for further inquiry. Your use is also subject to Pera Terms of Use, which you agree to when using this offering.

Risk with Private Keys - Pera operates non-custodial services, meaning we do not have access to your assets or your private keys; and you alone are responsible for safeguarding any digital assets that come into your possession by ensuring the security and confidentiality of the private keys which control those assets. You should understand and protect yourself against the risk that your private keys will be lost or stolen, thus resulting in a loss.

Third-Party Software - This offering relies in part upon third party software, as defined and as applicable in our Terms of Use, that Pera did not build and does not maintain or even regularly monitor. You should familiarize yourself with the third party software developer(s) responsible for creating and maintaining the software and only use the offering if you are comfortable with that developer and their published software. Pera does not guarantee the security or functionality of any third-party software or protocol intended to be compatible with Pera Wallet Staking and is not responsible for any losses due to the failure or exploitation of the third-party software or protocol.

Security - By electing to use this offering, you are interacting with smart contracts, which involves the risk that the code contains bugs or a security vulnerability. Bugs and vulnerabilities in smart contract code can result in a loss to you. You should investigate whether any smart contract you are using has undergone a security audit, and you should understand the results of that audit and any changes the developers made in response to that audit. You should also maintain awareness of any news regarding security vulnerabilities pertaining to the smart contracts you are using.

Price - Digital assets you acquire or interact with while using our software are subject to volatility. Volatility may occur due to normal market forces or be caused by technical issues with third party software. There is no guarantee that a digital asset will remain stable or increase in value, or that you will be able to sell any digital assets. Pera is not an exchange or financial institution and we make no representations or warranties regarding any asset. The decision to deal in any particular digital asset is solely that of our users and our users accept risks described herein.

Governance - The smart contract protocols you interact with through this offering are not governed by Pera but instead third parties or groups of third parties, including Digital Autonomous Organizations (“DAOs”) that are composed of individuals and entities that possess a protocol governance token. That token may give the token holders the privilege of voting on changes to the smart contract that you have interacted with, among other things. There is a risk that any changes that they might make in the future would result in a loss or other negative effect on you and your assets. Pera has no obligation to assess any changes to smart contracts or warn you about or take any other action with respect to any governance actions that might lead to a smart contract change.

Lock Period Risk - Algorand does not require token lock-up periods. Unlike networks like Ethereum or Solana, which require tokens to remain staked for days or weeks, Algorand users always have access to their tokens. This means they can respond to market changes when needed. Having no lock-up periods demonstrates Algorand's commitment to user control while maintaining network security. Users stake and unstake freely, though some third-party services might implement their own restrictions.

Smart Contract Risk - Using liquid staking or pooling services involves risks with the software that runs them. These platforms check their security regularly, but problems or attacks could still happen. Each platform has different levels of risk based on how it works.

Intermediation - The protocols may require off-chain software and information flows to function properly. There are also data sources called “oracles” that convey off-chain information that on-chain smart contracts require to function properly. There is a risk that this process will fail or even be manipulated in a way that results in a loss to you.

Suspension, Termination and Withdrawal - You may un-stake or stop using the services at any time. Pera may suspend or terminate this offering for any reason in its sole discretion and is under no obligation to disclose the details of its decision to take such action with you.

No Guarantee of Rewards - PERA DOES NOT GUARANTEE THAT YOU WILL RECEIVE STAKING REWARDS OR ANY STAKING REWARD RATES. SUCCESSFUL TRANSFER OF THE REWARDS IS SUBJECT TO THE PROOF-OF-STAKE NETWORKS AND IS NOT UNDER PERA’S CONTROL. REWARD RATES ARE DETERMINED BY THE UNDERLYING PROTOCOLS AND NOT BY PERA AND MAY FLUCTUATE, INCLUDING BECAUSE THE UNDERLYING SERVICES GENERATING REWARDS ARE PERFORMED IMPROPERLY.

Underlying Blockchain Risk - The protocols you are accessing through this offering exist on a blockchain network that may suffer a malfunction or breakdown that would negatively affect the operation of the protocol and thus may result in a loss to you. There is no certainty that the cryptography that underpins the blockchain will never be broken, potentially resulting in a loss to you. Further, upgrades to the blockchain (often called “forks”) may create instability, vulnerabilities, or other problems that may result in a loss to you. Fundamentally, blockchain ecosystems are still young, and until they develop a longer track record of security, reliability, and resilience, you bear the risk that there may be problems which lead to the loss of your assets.

Legal Uncertainty - Currently, neither this offering nor the third party services that it connects to are, in our view, regulated activities. However, the regulatory landscape for blockchain technology and related services is constantly evolving around the world and any changes may negatively affect your use of this offering, which could result in a loss to you. Pera has no obligation and will not notify you of any relevant changes in the law.

Updated on: 22/11/2024