Staking with Northcrypto


How the service works, how rewards are calculated and which risks you should understand before staking.

What is staking?

In staking, crypto-assets are used to support a blockchain that uses a Proof of Stake (PoS) consensus mechanism, for example by validating transactions. The blockchain protocol may pay staking rewards for this activity. However, the generation, amount and continuity of rewards are not certain.

Northcrypto's staking service allows you to allocate an amount of a crypto-asset held in the service to staking. You retain ownership of the crypto-assets throughout the staking period. Northcrypto maintains client-specific records of the assets allocated to staking and the rewards attributable to you.

Supported crypto-assets

  • Ethereum (ETH)
  • Solana (SOL)

Northcrypto may add or remove supported crypto-assets or suspend staking for a particular crypto-asset for reasons relating to technical implementation, risk management, regulation or market conditions. Current availability is shown in the online service and mobile application.

How the service works

  1. Activate the service. In the online service or mobile application, select ETH or SOL and the amount you wish to allocate to staking. Before activation, you will receive a link to this information page and the applicable Terms of Use. You must confirm that the information and terms have been made available to you.
  2. Northcrypto records the amount. The amount allocated to staking is recorded for you in Northcrypto's systems. Ownership does not transfer to Northcrypto or to a technical service provider.
  3. The assets are staked. Northcrypto operationally combines amounts allocated by clients into larger aggregates and carries out staking using Figment's validator infrastructure. Aggregation reduces unnecessary blockchain transaction costs. Client-specific records remain separate at all times.
  4. Rewards are reconciled. Rewards actually generated by the blockchain protocol are received and reconciled in Northcrypto's systems. Each client's share is calculated for each calculation period.
  5. The net reward is credited. The net reward attributable to you is credited to your account weekly, as a rule in the same crypto-asset that was staked. The calculation may take into account activation and deactivation times, protocol calculation periods, actual validator performance and minor rounding from technical reconciliation.
  6. Stop whenever you wish. You may request that assets be removed from staking through the service. Release of the assets may be subject to a waiting period caused by the blockchain protocol or an exceptional situation.

Roles of Northcrypto and its technical service providers

Northcrypto

Northcrypto is responsible for the staking service, the client relationship, client communications, custody and control of assets, client-specific record-keeping, reward calculations and arranging the service in accordance with applicable requirements. The assets remain under Northcrypto's control through its Fireblocks custody and transaction-signing infrastructure.

Figment Europe Ltd.

Figment provides the technical validator infrastructure used for staking. Figment does not take custody of clients' crypto-assets and has no independent right to transfer, use, pledge or otherwise control them. The staking service does not create a direct contractual relationship between you and Figment. The use of a third party does not remove Northcrypto's responsibility to arrange the service in accordance with applicable law, the Terms of Use and its own procedures.

Staking reward and Northcrypto's fee

The staking reward paid to you is based on the rewards actually generated by the blockchain protocol of the relevant crypto-asset. The amount may vary based on factors such as the protocol rules, the total amount staked in the network, validator performance, network usage and other matters outside Northcrypto's control.

Calculation principle: Client's net reward = client's calculated share of the realised staking reward less Northcrypto's 25% fee.

Northcrypto's fee is 25% of the gross reward actually received in respect of the amount you have allocated to staking. Figment's fee is included in Northcrypto's 25% fee and is not deducted separately from the client's share. The fee is not deducted from the principal you have allocated to staking.

Example. If the client's calculated share of the realised gross reward is 0.010 ETH, Northcrypto's fee is 0.0025 ETH and the net reward credited to the client is 0.0075 ETH. This example only illustrates the calculation and is not a return estimate.

Automatic restaking

Rewards are automatically restaked only if you select automatic restaking when activating the service.

  • ETH: rewards eligible for restaking are restaked on Mondays.
  • SOL: rewards are restaked when they are received from Figment. Because the timing depends on the SOL protocol, restaking does not occur on a fixed weekday or according to a fixed weekly schedule.

Release of assets and the Staking Buffer

Blockchain protocols may impose technical delays, waiting periods or queues on the commencement or termination of staking. Northcrypto maintains a Staking Buffer to mitigate the effects of these delays.

The Staking Buffer consists of crypto-assets owned by Northcrypto. It is held separately from client assets in its own wallet and under a separate Figment contract. Clients' crypto-assets are not used to form the buffer maintained for Northcrypto's own account, and Northcrypto bears losses relating to the buffer. Buffer losses are not allocated to assets clients have designated for staking or to rewards already credited to clients.

The buffer is intended to allow assets removed from staking to be released without requiring the client to wait for the blockchain's actual unstaking process in every situation. However, the buffer is not an unconditional promise of immediate release. Release may be delayed in exceptional market, network, liquidity, information security or disruption scenarios.

Key staking risks

Staking and crypto-assets involve significant risks. If a risk materialises, it may lead to the loss of rewards, delayed availability of assets or the partial or total loss of staked crypto-assets.

  • Slashing and other penalty risks. A blockchain protocol may penalise a validator for matters such as incorrect operation or downtime. A penalty may reduce rewards or the amount staked.
  • Validator and service provider risk. Validator underperformance, a technical or administrative error, an outage or the actions of an external service provider may affect rewards or service availability.
  • Protocol and technical risk. Software defects, rule changes, congestion, outages or other operation of the blockchain protocol may affect assets, rewards or processing times.
  • Availability and liquidity risk. Staked assets may not be available for use, transfer, sale or withdrawal within the expected timeframe. The Staking Buffer mitigates this risk but does not eliminate it.
  • Information security and cyber risk. Hacking, cyberattacks, compromise of keys or systems, or another information security incident may affect the service or assets.
  • Concentration risk. The technical implementation depends on a limited number of infrastructure components and external service providers. A widespread disruption may affect several clients at the same time.
  • Price volatility risk. The market value of ETH and SOL may decline rapidly and significantly. The euro value of a crypto-asset may decrease even if you receive staking rewards.
  • Reward and restaking risk. Rewards may vary or may not be received at all. Automatic restaking also exposes rewards received to the risks of staking.
  • Regulatory and service change risk. Legislation, regulatory requirements, protocols or market conditions may change and result in the restriction, modification, suspension or termination of the service.

Suspension, modification or termination of the service

Northcrypto does not guarantee that staking will operate without interruption, without errors or according to a particular schedule. Northcrypto may suspend, restrict, modify or terminate the staking service, in whole or in part, for technical, operational, legal, regulatory, risk management or service provider-related reasons.

In such a situation, a staked crypto-asset may cease to generate new rewards, and no future rewards arise for the period after suspension or termination. The release of assets may also be delayed by the protocol or an exceptional situation. Material service or term changes are communicated in accordance with the Terms of Use and applicable requirements.

Ownership, client rights and liability

  • Crypto-assets allocated to staking remain your property.
  • Northcrypto maintains client-specific records of your assets and the rewards attributable to you.
  • You may request that assets be removed from staking through the service, but release may be subject to a waiting period.
  • You are solely responsible for taxes, reporting obligations and other authority obligations relating to staking and staking rewards.
  • The staking service does not include investment advice.

Northcrypto is liable for the loss of crypto-assets in connection with staking to the extent that the loss results from an incident attributable to Northcrypto and liability arises under applicable law or the Terms of Use. A loss arising from the operation of a blockchain protocol or another event outside Northcrypto's control may not be attributable to Northcrypto. Nothing on this page limits any rights you have under mandatory law. The detailed grounds and limitations of liability are set out in the Terms of Use.

Before activation

Read this information page and the Terms of Use in full. In particular, make sure you understand the reward calculation, the 25% service fee, possible delays in the release of assets and the risk of losing staked assets. Activation does not guarantee that rewards will arise or that assets will be immediately available.

Terms of Use: www.northcrypto.com/terms-of-service

Regulatory Information: www.northcrypto.com/regulatory-information

Contacts and complaints

If you have a question about the service, contact support@northcrypto.com. You may submit a complaint about Northcrypto's service free of charge in any official language of the European Union.

You may use the complaint form or submit a free-form complaint by email to complaints@northcrypto.com or by post to NorthCrypto Oy, Complaints team, Kristiinankatu 1 B 25, 20100 Turku, Finland. For the complaint to be handled, provide at least your name and contact details and a short description of the subject matter.

Northcrypto confirms receipt of a complaint without undue delay. A complaint is generally processed within 30 days of receipt. If processing exceptionally takes longer, Northcrypto will inform you.

Customer Complaints Policy: www.northcrypto.com/customer-complaints-policy

Contact us: www.northcrypto.com/contact

Frequently asked questions

Is the staking reward guaranteed?

No. The generation, amount and continuity of rewards are not guaranteed.

Is the 25% fee deducted from the principal I stake?

No. The fee is deducted only from staking rewards actually received.

Are my crypto-assets transferred to Figment?

No. Figment provides validator infrastructure but does not take custody of client assets or control them.

Will my assets be available immediately when I stop staking?

Not necessarily. The Staking Buffer may speed up release, but a delay caused by the protocol or an exceptional situation is possible.

Can assets be lost through staking?

Yes. For example, slashing, a protocol or technical error, a cyber incident or another staking-related risk may result in the partial or total loss of rewards or staked crypto-assets.