Using MetaMask 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 using this offering, to determine for yourself whether it makes sense for you in light of the risks, and to understand that you, and you alone, are responsible for any losses that may occur. The risks set out below are not comprehensive nor discussed in any depth. Use this information as the starting point for further inquiry. Your use is also subject to ConsenSys’s Terms of Use and Beta Terms, which you agree to when using this offering.
- Third-Party Software – This offering relies upon software that ConsenSys 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. ConsenSys does not guarantee the security or functionality of any third-party software or protocol intended to be compatible with MetaMask Staking and is not responsible for any losses due to the failure 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 – Through this offering, you may purchase, trade for, or come into possession of digital tokens that may fluctuate greatly in the exchange rate it has with fiat currency, particularly the US Dollar. Market changes and technical developments, including problems with the platform code, may greatly affect the dollar price of any tokens you acquire. Your ability to convert one token into a different token, or a token into fiat currency, may also be greatly impacted by the lack of liquid markets for such transactions.
- Governance – The smart contract protocols you interact with through this offering are not governed by ConsenSys but instead may be governed by a Digital Autonomous Organization (“DAO”) that is 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. ConsenSys has no obligation to assess any changes to smart contracts or warn you about any governance actions that might lead to a smart contract change.
- Intermediation – The protocols may require off-chain software and information flows to function properly. For instance, information from the Ethereum consensus layer must be sent off-chain to the protocol’s smart contracts that exist on the Ethereum execution layer. There is a risk that this process will fail or even be manipulated in a way that results in a loss to you.
- 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 – Neither this offering nor the third party services that it connects to are, in our view, regulated activities in any jurisdiction where the legal framework in that jurisdiction would restrict ConsenSys, the third party software provider, or a user from engaging in this activity. However, as the law changes going forward, the law may come to require licenses or other legal measures to be taken for this offering to be offered and/or used in certain jurisdictions. Changes in the law or in the application of current rules and regulations may negatively affect your use of this offering, which may result in a loss to you. ConsenSys has no obligation and will not notify you of any relevant changes in the law.
- Risk with private keys – The theft of digital assets through hacks, phishing attacks, and other illicit schemes is a serious problem. You 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.