Q: What is staking?
A: Staking is a way to earn rewards by holding certain digital assets. When you stake your assets, you contribute to the operation, security, and efficiency of the blockchain network. In return, you receive rewards over time, typically in the form of additional tokens of the same asset.
Q: What is the staking program offered by iTrustCapital?
A: The staking program offered by iTrustCapital allows clients to stake eligible digital assets (ETH and SOL) within their retirement and Premium Custody accounts to earn rewards. Clients can deposit supported assets into staking directly from their dashboards and accumulate rewards, which are distributed once they choose to unstake their assets.
Q: Who is providing the Staking program services?
A: iTrustCapital utilizes a third-party Staking Infrastructure provider, as well as an Institutional Storage Provider, for the Staking Program.
Q: How do I start staking with iTrustCapital?
A: The process is initiated directly from the dashboard. To start staking, log in to your iTrustCapital dashboard and locate your assets. If the asset is available to be staked, follow the prompts to deposit your desired amount into the staking program.
Q: How many rewards will I earn from staking?
A: Staking rewards are dynamic and vary based on several factors, including network conditions, validator performance, and overall participation rates. Because of this, the exact rewards can fluctuate over time. iTrustCapital passes rewards through based on protocol-level earnings, which are distributed after clients choose to unstake.
Q: Is staking available in both IRA and non-IRA accounts?
A: Yes. Staking is available for both Crypto IRAs (including Traditional, Roth, or SEP IRAs) and Premium Custody Accounts, as long as you have eligible assets in your account to stake.
Q: How long does it take for my assets to start earning staking rewards?
A: The current estimated bonding and unbonding times are displayed on the staking confirmation screen within your account. Staking bonding and unbonding times are dependent on each asset's network dynamics that are well beyond iTrustCapital’s control.
Q: How do I stop staking my crypto?
A: To stop staking, you can unstake your tokens directly from your iTrustCapital dashboard in the same area where you initiated staking.
Q: How long does it take to receive my tokens and rewards after unstaking (unbounding)?
A: Unstaked tokens will be available in your account within 2-45 business days, along with any accrued rewards, based on which asset you are staking.
Staking bonding and unbonding times are dependent on each asset's network dynamics, which are beyond iTrustCapital’s control.
Q: What fees does iTrustCapital charge for staking?
A: With iTrustCapital’s staking program, you can earn passive rewards on your crypto holdings within your IRA and Premium Custody Account, with iTrustCapital and its trusted third-party provider applying a competitive fee on the staking rewards. Please note that the annual reward rate shown is on a “net of fee” basis, meaning it includes all applicable fees. When you stake SOL, for example, if the reward rate displayed is 6.39%, this reflects the approximate rate you will receive after the 22% fee. All iTrustCapital and third-party vendor fees have been deducted. Staking rewards offered by the third-party validator are subject to change without notice.
In this example, you keep 78% of the rewards, which are seamlessly credited to your account upon unstaking. For example, if you earn $10 in rewards during the staking period, your fees will be $2.20, netting you $7.80 in rewards, which will be deposited back into your iTrustCapital account. Rewards will be paid out in the staked token.
Q: What happens to my staked tokens if I want to trade or sell it during the staking period?
A: Staked tokens are locked during the staking period, so you must unstake them before selling.
Q: Are the staking rewards taxable within my IRA account?
A: Staking rewards earned within an IRA account generally grow tax-advantaged, meaning they are not taxed until distribution (for Traditional IRAs) or are tax-free upon qualified distribution (for Roth IRAs). However, specific tax implications depend on your IRA type and personal circumstances, so consult a tax professional for advice.
Q: What are the risks of staking with iTrustCapital?
A: Staking involves risks, including the speculative nature of cryptocurrencies, potential loss of value, slashing, and the possibility that rewards may vary or not be earned. Additionally, staked tokens may be locked during the staking period, limiting liquidity. Consult a financial advisor to assess if staking aligns with your investment goals. Staking Risks - Click here for more info
Q: Are my rewards automatically re-staked?
Rewards are not automatically re-staked at this time. To stake your earned rewards, you’d need to unstake, receive your rewards, and then stake once again.