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description: Detailed breakdown of HEX Staking model
---

# HEX Certificate of Deposit



### Early Unstaking Fee

Users are able to unstake earlier (than their lock time expires) for a fee. The fee is equal to the reward amount that they would get in the first 50% of days they committed to stake. Eg. if a user commits to stake for 200 days and unstakes after 50 days, he will not have enough reward to cover the fee, therefore the fee will be paid with some amount of his stake. If he unstakes after 101 days, he gets back all the stake amount + reward for 1 day. The minimum fee days is set to 30 days.

Exact equations\
fee days = max(30, committed stake days / 2)\
early fee = sum of the unstakers rewards of days from starting day to (starting day + fee days)

If starting day + fee days > unstaking day, the staker doesn’t get any reward and loses some percentage of his stake. The early fee is averaged as following:

raw early fee = sum of the unstakers rewards of days from starting day to unstaking day\
early fee = raw early fee × fee days / (unstaking day — starting day)

The minimum number of fee days is set to 30. Meaning if somebody commits to stake for 50 days and unstakes after 26 days, he will still pay fees for 30 days (instead of 25), resulting in losing some percentage of his stake.\
Users that move their tokens from their wallets to the Venture Yield Contracts will not lose their future unlocks of SHOs.

Tokens taken from the early unstake fee are split three ways. Half (50%) are returned to the staking pool, one-third (30%) will be liquidated and added to the DAO Ecosystem growth pool and one-fifth (20%) will be burned. The DAO ecosystem growth pool is funds that buy into all major DAO Maker launched projects. Purchased tokens will be burned, creating a positive feedback loop between DAO and its ecosystem. The detailed process has not been defined yet and will be public in the future.



### Unstacking too late fee <a href="#id-45e2" id="id-45e2"></a>

Users are charged a fee if they unstack more than 30 days after their lock time expires. The fee increases linearly for 100 days. After 100 days, the fee is .equal to the total stake + reward (meaning that users get 0 DAO back). Anybody can call the smart contract and send staking rewards to users that **finished their staking period** to their wallets. Once the function is called, the user will not receive rewards anymore, however, his stake remains meaning vested Tokens from SHOs are not affected.

Anybody can unstake for anybody (who is in the late days period) to prevent the fee increases and to distribute the accumulated fee to the other stakers. That late unstake fee ensures clear price predictability to protect DAO holders.

late days = unstacking day -(lock expiration day + 30)

If late days >0, the user pays the late fee, calculated as follows:

late fee =(stake + reward) \*late days / 100
