> For the complete documentation index, see [llms.txt](https://docs.stfx.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stfx.io/staking-usdstfx.md).

# Staking $STFX

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**Staking is available on Ethereum and Arbitrum**- <https://stfx.io/stake>
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**Staking $STFX** unlocks **a series of exclusive benefits** including:

* &#x20;10% APR
* Trading & Investment Rebates (up to 0.05% of personal volume)
* Greater Vault Capacities
* Greater Performance Fees
* Longer Vault Duration
* More Simultaneous Vaults
* Secret Vaults (hiding trade details)
* and much more

<figure><img src="/files/oeLvUf9I38H8EC2ioJwQ" alt=""><figcaption><p><a href="https://stfx.io/stake">STFX Staking Tiers</a></p></figcaption></figure>

The **STFX** token provides the opportunity for staking over a span of six months, enabling holders to accumulate rewards at an annualized rate of **10%**. This translates to a *5% return over the designated six-month staking period*. These rewards can be claimed and received as liquid $**STFX** tokens at any given time.

### Single Sided Staking

<figure><img src="/files/tjDbLGTudrkOpCxokZGU" alt=""><figcaption></figcaption></figure>

**STFX** tokens can be staked in a fixed term, six-month duration escrow contract. During this lockup phase, stakers will receive rewards at a **10%** annualized interest rate (**5%** notional return over the life of the term). These APR-based rewards can be claimed at any point in time as liquid **STFX** tokens.

Although users can unstake their tokens at any time, if they choose to do so before the six-month period concludes, a burn formula will be applied, resulting in a reduced amount returned to the user:

<figure><img src="/files/8THKxes12ldtpniOTnhr" alt=""><figcaption></figcaption></figure>

STFX deducted from users as a penalty will be burned from circulating supply.

> **Example A.** *No Burn (Unstaking after 180 days):*
>
> Suppose a user possesses *1,000 STFX tokens* and chooses to engage in the *six-month (180-day) staking period*. At the end of the *180 days*, the user decides to unstake their tokens, resulting in a *5% return* on their initially staked quantity. In this particular scenario, no tokens are burned, and the user is rewarded with their original *1,000 tokens* alongside an additional *50 tokens* as a token of appreciation, thereby accumulating a total of *1,050 STFX tokens*.

> **Example B.** *Burn Applied (Unstaking after 60 days):*
>
> A user holds *1,000 STFX tokens* and stakes them for *six months (180 days)*. The user decides to unstake tokens after just *60 days*. In this period, user have accrued *1.67% in rewards (60 days is 1/3 of the 180-day period, so 5% \* 1/3 = 1.67%)*. User’s total holdings, including rewards, would be *1,016.7 STFX tokens*. Since he is unstaking before the six-month period ends, the burn formula is applied. With 2/3 of the time remaining *(120 days)*, *20%* of the remaining 2/3 portion of the staked amount (*133.4 tokens*) will be burnt. In this case, the user will receive his original *1,016.7 STFX tokens* minus the burnt *133.4 STFX tokens*, resulting in a total of *883.3 STFX tokens* returned to the user.

{% content-ref url="/pages/K3w1CJyL6CCP5S85pMjW" %}
[$STFX Token](/usdstfx-token.md)
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