Penalties

If you cut a stake short, you will pay a penalty. The longer your stake, the bigger the potential penalty. The early you cut a stake short, the higher the penalty. If you have served less than half your stake, the penalty will eat into your principal.

• 100,000 Hex staked for 100 days
• Emergency end-stake on day 12
• Assume interest received is 2000 Hex for this example
• Half of committed days is equal to 50. This variable must be 90 or more, so 90 takes its place.
• Penalty = (2000 Hex) * (90 days) / (12 days) = 15,000 Hex
• Hex Received Back = 100,000 Hex - 15,000 Hex + 2000 Hex = 87,000 Hex

• 2,300,000 Hex staked for 3600 days
• Emergency end-stake on day 80 of the stake
• Assume interest received is 120,000 Hex for this example
• Penalty = (120000 Hex) * (1800 days) / (80 days) = 2,700,000 Hex
• Hex Received Back = 2,300,000 Hex - 2,700,000 Hex + 120,000 Hex = 0 Hex
• In this example you would lose all your Hex. You can never go negative and “owe” Hex

• 1,000,000 Hex staked for 210 days
• Emergency end-stake on day 110 of the stake
• Assume interest received is 39,000 Hex for this example
• Also assume interest received at the 50% mark (105 days) was 38,000 Hex
• Penalty = 38,000 Hex
• Interest = The interest accrued after the 50% mark, 1000 Hex
• Hex Received Back = Principal plus the interest accrued after the 50% mark, = 1,001,000 Hex

There is a 14 day grace period to choose either “End Stake” or “Good Accounting” once your stake ends After 14 days, you will suffer a 1% weekly penalty for every week you do not “End Stake” or select “Good Accounting”. Learn more about these two options at the bottom of the staking page.

50% of all penalties paid get returned as interest to stakers.

The other 50% is sent to the origin address

Reference the wall of shame on https://hex.vision to see past history on penalties people have paid when ending their stakes early.