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Staking Risks

What can go wrong when staking HYPE for sHYPE. Read before you stake.

Validator Slashing​

If the delegated validator gets slashed, total managed HYPE decreases. This hits the sHYPE exchange rate directly — your sHYPE will redeem for less HYPE.

Mitigation: Protocol selects reputable validators and can migrate to a new one if needed.

Unstaking Delays​

Unstaking isn't instant. Your request enters a FIFO queue, and wait time depends on:

  • Validator undelegation processing
  • Queue depth (requests ahead of yours)
  • Available inline netting from new deposits

No guaranteed max wait time.

Smart Contract Risk​

sHYPE relies on StakingManager, HyperCoreManager, and related contracts. Bugs could mean loss of funds.

Mitigation: Contracts are audited. Built on OpenZeppelin upgradeable patterns with ReentrancyGuard.

Exchange Rate Risk​

The sHYPE rate is designed to only go up, but slashing or contract bugs could cause it to drop. The rate is derived from on-chain state and can't be manually adjusted.