🚨Early Unstakes
Understand how early withdrawals will affect your investment should you choose to end your stake early
Last updated
Understand how early withdrawals will affect your investment should you choose to end your stake early
Last updated
When you interact with the Axion Smart Contract, you are - in essence - creating a contract with yourself. You are turning your AXN into Shares for a period of time, and then when that time is complete, you withdraw your shares and turn it back into AXN, including any rewards or bonuses paid out by the auction system. However, in the event that you want to gain access back to your staked investment, the Smart Contract has a feature called Early Withdraw. This allows you to break the contract early and withdraw a portion of your investment. But be warned: breaking your contract early comes with penalties.
Core to Axion's ecosystem is its long-term staking, so in order to incentivize all stakers to keep their investment secure within the ecosystem, a penalty system is implemented for all Early Withdrawals. The amount you are penalized is proportional to the completion of your staking term. So, for example, if you created a stake that lasted for 100 days, and you want to withdraw early at day 35, then you would be only 35% of the way through your term. Thus, only 35% of your staked AXN (principal + interest) would be available to be withdrawn back into your wallet, and 65% of your AXN (principal+interest) would be penalized. All penalized AXN is then distributed into the next day's auction system, available for bidders. If you were 90% of the way through your term, then only 10% would be penalized, etc.
This penalty does not apply to any Bitcoin rewards you have received from the accelerator; those are yours to withdraw and spend at any time. If you do choose to withdraw any active stakes, those stakes immediately stop earning interest, and Bitcoin rewards.
For example, a user stakes 100 AXN and receives 50 AXN as their share in the payout pools for the days that they are staked for.
The user commits to stake for 100 days but unstakes early after day 20.
The payout penalty is 80/100 or 80% of the final payout.
The final payout is 20% of earned interest + the principal.
Only 30 AXN will be returned, which is 20% of 150 AXN.
You can withdraw your investment at any time by going to the Axion Portal and scrolling down to your Active Stakes. There, you can see a "Withdraw" button next to your stakes. Note the Progress column, which shows a percentage completion for each stake you have. This will help you know the percentage return in AXN you can expect to receive when you early withdraw.
To get started, simply click on the Withdraw button next to the stake that you want to withdraw. When you click the button, a warning window will appear that will show the amount of AXN that you will receive, and how much will be penalized. To confirm, click the "Withdraw" button.
A transaction window will appear in MetaMask that authorizes the withdrawal. Make sure to leave the Gas Fees section untouched, else your withdrawal may not process. Also make sure you have enough MATIC in your wallet to pay for the gas.
Click on the "Confirm" button to send your transaction to the network. When it is complete, your non-penalized AXN will be made immediately available in your wallet.
Instead of early unstaking, you can also turn your stake into a Galaxy Stake NFT.
