Penalties
Emergency End Stake Penalty
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.
Example #1
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
Example #2
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
Example #3
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
Late End Stake Penalty
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.
Where do Hex penalties go?
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.