Binance ETH Staking Terms
Last Updated: 29 May 2024
A. Acceptance of these Terms
By Subscribing to the ETH Staking Services, you acknowledge and agree that you will be bound by and will comply with these ETH staking service terms (“ETH Staking Terms”), as updated and amended from time to time. By accessing and/or using the ETH Staking Services, you agree that you have read and understood these ETH Staking Terms, together with any additional documents or terms referred to in these ETH Staking Terms. If you do not understand and accept these ETH Staking Terms in their entirety, you should not use the ETH Staking Services.
B. Scope of these Terms and Changes
These terms specifically govern your access to and use of the ETH staking service and any ancillary services made available by Binance (“ETH Staking Services”) in accordance with these ETH Staking Terms.
These ETH Staking Terms are supplemental to and shall be read together with the Binance Terms of Use available here (“Terms of Use”) and the provisions set out in the Terms of Use shall continue to apply. All terms and clauses contained in the Terms of Use (except to the extent expressly modified herein) are incorporated by reference and have the same force and effect as if set out in their entirety in these ETH Staking Terms. In the event of any conflict or inconsistency between these ETH Staking Terms and the Terms of Use, these ETH Staking Terms shall prevail with respect to the services contemplated hereunder, unless expressly stated otherwise. These ETH Staking Terms constitute Product Terms. References in the Terms of Use to the Binance Services shall include references to the ETH Staking Services contemplated hereunder.
Binance may make changes to these ETH Staking Terms (or any terms or information incorporated by reference) at any time in accordance with the Terms of Use.
C. Disclosure and Consent
By Subscribing to a Staking Offer you can earn Staking Rewards in exchange for providing Binance with your Staked Assets. Staking Rewards are not guaranteed or fixed, the Staking Rewards may vary from time to time.
Your Staked Assets will not be segregated from the Digital Assets of others. Your Staked Assets may be commingled in hot wallets and cold wallets with Digital Assets belonging to Binance Group Entities and clients of Binance Affiliates globally. You will not have a right to recover any specific Digital Assets but please see Section G and Section H below on conversion of WBETH and BETH and the redemption of ETH.
Staked Assets do not constitute “Client Digital Assets” for the purposes of the Terms of Use and the use of your Staked Assets is not restricted under the Terms of Use. Staked Assets may be used by Binance Group Entities in on-chain staking activities in a tightly controlled manner to generate On Chain Rewards. Binance Group Entities may, in their sole and absolute discretion:
a. Stake you Staked Assets in whole or in part;
b. act as a validator on an Applicable Network;
c. Delegate to other Binance Group Entities any voting rights that may be attached to your Staked Assets.
Please refer to the risk factor statement for a summary overview of some (but not all) of the risks that may result from Subscribing to a Staking Offer, including the risks that may arise from the use of your Staked Assets.
No Binance Group Entity makes any representation or warranty that ETH Staking is appropriate (a) for any user or in any location, or (b) that the transactions and services described in these ETH Staking Terms are (or will continue to be) available or appropriate for any user or in any location. Binance does not guarantee uninterrupted or error-free operation of the ETH Staking Services or that it can correct all defects or prevent disruptions or authorised access. You are strongly encouraged to carefully review these ETH Staking Terms and seek independent professional advice as to whether ETH Staking Services are appropriate for you having regard to your personal circumstances and objectives, financial position and risk tolerance.
By accepting these ETH Staking Terms, you hereby unconditionally and irrevocably (a) confirm that you understand and accept any and all associated risks with your subscription to the ETH Staking Service including without limitation the risks described in the risk factor statement, (b) explicitly consent to, and grant Binance Group Entities all necessary rights for, Binance Group Entities using your Staked Assets as described in these ETH Staking Terms and any associated risks, and (c) have carefully assessed whether, and determined that, ETH Staking Services are appropriate for you.
D. How to Participate in ETH Staking
By Subscribing to the ETH Staking Service, you can earn Staking Rewards in exchange for providing Binance with your Staked Assets. The only type of Digital Asset that you can use to subscribe to the ETH Staking Service is ETH. Upon your subscription to the ETH Staking Service with your ETH you will automatically receive WBETH in your spot account. Binance no longer provides BETH in exchange for your subscription and no BETH will be distributed to Binance users accounts in relation to the ETH Staking Service.
When you Subscribe to the ETH Staking Service, you will be prompted to:
a. confirm the amount of ETH that you will Subscribe to the Staking Offer; and
b. confirm your agreement to these ETH Staking Terms.
Digital Assets that you Subscribe to a Staking Offer will be treated as received when you subscribe to the ETH Staking Service, provided that Binance reserves the right, at any time time and from time to time in its sole discretion and without prior notice, to:
a. reject or remove Staked Assets from the ETH Staking Service;
b. specify a minimum or maximum amount of ETH required to Subscribe to a Staking Offer;
c. specify, introduct, alter or revoke Subscription Limits that may apply from time to time;
d. mandatorily redeem or otherwise return all or some Staked Assets of one or more users.
E. Calculation and Distribution of Staking Rewards
If you hold BETH (note, BETH is no longer provided in return for staked ETH): Staking Rewards start accruing from 0:00 UTC the day after you Subscribe for the relevant Staking Offer. Staking Rewards will accrue on a daily basis and will be calculated based on the daily APR applicable at 00:00 UTC on the day on which the Staking Rewards are calculated and will be distributed to your Spot Account daily, the day after they accrue, between 04:00 UTC to 10:00 UTC. You will only earn Staking Rewards in respect of BETH that is in your Spot Wallet. You will not earn or receive any Staking Rewards in respect of BETH that is not held in your Spot Wallet.
If you hold WBETH: WBETH represents your Staked Assets plus your accrued Staked Rewards, which is facilitated to you in the form of the WBETH Conversion Rate. Staking Rewards start accruing from 0:00 UTC the day after you Subscribe for the relevant Staking Offer. Staking Rewards will accrue on a daily basis and will be calculated based on the daily APR applicable at 00:00 UTC on the day on which the Staking Rewards are calculated. No Staking Rewards will be distributed to your Spot Wallet directly in respect of WBETH. Instead, the Staking Rewards earned are accrued to, and will increase the value of, your WBETH per the WBETH Conversion Rate. This increased value is reflected by the WBETH:ETH conversion ratio, which is updated daily at 08:00 (UTC+8). You will be able to check the records of your earned Staked Rewards, denominated in ETH, on the WBETH Reward History of Binance ETH Staking page.
Staking Rewards, and any calculations in relation to the Staking Rewards, are rounded down to 8 decimal places. Binance retains all On-Chain Rewards. This amount may be different from Staking Rewards.
F. Variable Staking Rate
The Variable Staking Rate is published on the Platform and may change from time to time as determined by Binance in its sole discretion. Binance may change this rate from time to time at its discretion.
Binance does not in any way represent or guarantee that the Variable Staking Rate applicable at the time you Subscribe for a Simple Earn Offer or anytime thereafter will remain constant. The applicable Variable Staking Rate may fluctuate up or down from time to time. You hereby acknowledge and agree that any representation, whether express or implied, regarding the possible rewards associated with a Staking Offer, applicable or otherwise shown at (or after) the time of Subscribing to a Staking Offer (i) is an estimate based on observations of available on-chain reward rates, general market rates, as well as special rates during promotion periods and is subject to significant risks and uncertainties , (ii) is not guaranteed in any way by any Binance Group Entity or indicative of future performance or rewards, (iii) is calculated based on the on chain rewards and profitability calculations available at the relevant time, which may change from time to time in the sole discretion of Binance, and (iv) is not in any way a form of advice, solicitation or offering for ETH Staking and should not be interpreted as such.
Changes to the Variable Staking Rate will be published on the Platform from time to time. YOU MUST REFER TO THE BINANCE WEBSITE REGULARLY. NO BINANCE GROUP ENTITY WILL HAVE ANY LIABILITY WHATSOEVER FOR ANY LOSSES ARISING FROM, OR CONNECTED WITH, CHANGES TO THE SIMPLE EARN REWARDS RATE, WHETHER OR NOT YOU WERE AWARE OF THOSE CHANGES.
G. Conversion between WBETH and ETH and redemption of ETH
If you hold WBETH and wish to redeem your Staked Assets and Staking Rewards, you will need to convert your WBETH to ETH. You may redeem your Staked Assets and accrued Staking Rewards by converting your WBETH to ETH at any time, subject to availability of the Redemption Pool and your personal Daily Redemption Quota.
Subject to the limitations described above, conversions of ETH to WBETH and WBETH to ETH can be effected at the prevailing WBETH Conversion Rate at any time, except between 23:45 UTC to 00:15 UTC everyday as during this period the Conversion Rate is updated. The WBETH Conversion Rate is a variable conversion rate, designed to allow you to have the benefits of Staking Rewards and also with the flexibility of withdrawing your WBETH off the Platform. The amount of WBETH or ETH that you will receive following a conversion is determined by the WBETH Conversion Rate, which is published on the Platform. When converting between WBETH and ETH, the value of the converted asset will be rounded down to 8 decimal places.
Conversion of ETH to WBETH is instantaneous and WBETH will be deposited into your Spot Account immediately. Conversion of WBETH to ETH is subject to processing. ETH is generally expected to be deposited into your Spot Account approximately 6 calendar days after successfully submitting a request to redeem WBETH, however the exact processing time required will vary. In some circumstances the conversion and therefore delivery of ETH or WBETH to your Spot Account may be subject to additional delay, including but not limited to events of extreme market volatility, network delays and outages, validator or protocol failure, a significant number of simultaneous instructions to convert ETH to WBETH or WBETH to ETH from other Binance users, or other unanticipated events.
Once you convert WBETH to ETH, you will no longer earn Staking Rewards. Converting WBETH to ETH is effectively a redemption from the Staking Offer.
H. Conversion of BETH to ETH and redemption of ETH
If you hold BETH and wish to redeem your Staked Assets, you will need to convert your BETH to ETH. You may redeem your Staked Assets by converting your BETH to ETH at any time, subject to availability of the Redemption Pool and your personal Daily Redemption Quota.
Subject to the limitations described above, BETH can be converted to ETH on a 1:1 basis at any time.
Conversion of BETH to ETH is subject to processing time. ETH is generally expected to be deposited into your Spot Account approximately 6 calendar days after successfully submitting a request to redeem BETH, however the exact processing time required will vary. Conversion and therefore delivery of ETH to your Spot Account may be subject to additional delay in some circumstances, including but not limited to events of extreme market volatility, network delays and outages, validator or protocol failure, a significant number of simultaneous instructions to convert BETH to WBETH or WBETH to ETH from other Binance users, or other unanticipated events.
Once you convert BETH to ETH, you will no longer earn Staking Rewards and you will no longer be able to convert ETH to BETH. Converting BETH to ETH is effectively a redemption from the Staking Offer.
I. Reporting and Valuation
You can access reports on your Staked Assets and Staking Rewards on the Platform at any time. You will be able to view and download reports showing the amount and value of your Staked Assets, as well as any subscriptions, withdrawals and distribution of Staking Rewards. The valuation of your Staked Assets displayed on the Platform is based on the current spot price on the relevant asset the Platform.
J. Termination
We may stop providing ETH Staking Services to you at any time in our sole discretion. Generally we will try to give you at least thirty (30) calendar days’ prior notice of such termination, but we may stop providing ETH Staking Services to you on significantly less (or even no) prior notice in certain circumstances including, for example and without limitation, if we are required to do so by Applicable Law or if your Binance Account is closed in accordance with the Terms of Use.
If we stop providing ETH Staking Services to you, we may determine in our sole discretion to convert all of your WBETH or BETH to ETH, or convert BETH to WBETH using the prevailing applicable conversion rate at the relevant time. Generally you will be permitted to retain any Staking Rewards, however there may be some circumstances in which you will not be permitted to retain Staking Rewards, including for example where you have committed a serious breach of these ETH Staking Terms or the Terms of Use, or where we are required to withhold the Staking Rewards in accordance with Applicable Law.
I. Disputes, Governing Law, Jurisdiction and Arbitration
For the avoidance of doubt, the following clauses relating to Complaints, Notice of claim, Agreement to arbitrate; Governing law; and Class action waiver of the Terms of Use shall apply to any disputes or claims relating to, arising out of or in connection with these ETH Staking Terms, including your agreement to these ETH Staking Terms.
J. Definitions
Unless otherwise defined, capitalised words used in these ETH Staking Terms shall have the same meaning given to them in the Terms of Use. The rules of interpretation set out in the Terms of Use shall apply to these ETH Staking Terms, except that references to clauses are to clauses in these ETH Staking Terms, unless otherwise stated.
Applicable Network means third party 'proof of stake' networks selected by Binance from time to time.
BETH means a tokenized representation of staked ETH that was historically distributed to users of the global Binance platform.
Binance Group Entities means Binance and each Binance Affiliate.
Daily Redemption Quota means the daily staked ETH redemption quota set for each user by Binance as described on [insert link to relevant webpage], which may change from time to time without notice.
ETH means Ether, the native token of the Ethereum network.
ETH Staking Terms has the meaning given to it in clause 1.
On-Chain Rewards means rewards or benefits of any kind, including but not limited to Digital Assets, provided by Applicable Networks for staking, validating, or engaging in any other conduct designated by the Applicable Network, that results in a ‘proof of stake’ reward.
Redemption Pool means the total amount of ETH that Binance has unstaked from the network and which is available each day to satisfy requests for the redemption of Staked Assets.
Spot Account means the Binance Account that you use for spot transactions.
Staked Assets means the ETH that you Subscribe to a Staking Offer.
Staking Offer means an offer by Binance to pay you Staking Rewards in return for you providing Binance with Staked Assets, in accordance with these ETH Staking Terms.
Staking Rewards means the Digital Assets that are provided or accrue to you, as consideration for Subscribing to a Staking Offer, in accordance with these ETH Staking Terms.
Subscribe means accepting and subscribing to a Staking Offer.
Subscription Limit means the maximum amount of Staked Assets that may be used to Subscribe to a Staking Offer, as determined by Binance at its sole discretion, from time to time.
Variable Staking Rate or “APR” is the annual percentage rate used to calculate Staking Rewards, as determined by Binance at its sole discretion, from time to time.
WBETH means a tokenized representation of staked ETH on the Platform and represents your staked ETH, plus the Staking Reward accrued, in a tradable and transferable form.
WBETH Conversion Rate is a variable conversion rate between ETH and WBETH, which increases incrementally over time to reflect the accrued Staking Rewards and is displayed here.
