Withdrawal Options

Last Update: 3/27/2025

The Hydra Swap Staking Program is designed with flexibility and autonomy in mind, offering users two distinct withdrawal pathways to accommodate different needs, timelines, and risk preferences. This trigger-based system allows stakers to initiate withdrawals on their own terms—striking a balance between liquidity, long-term alignment, and ecosystem stability. Option 1: 90-Day Notice — Full Withdrawal, No Penalty Ideal for long-term stakers, this option allows users to unstake 100% of their balance without incurring a penalty by signaling their intent to exit in advance.

- 90-Day Notice Period: Users initiate a withdrawal request and enter a 90-day lock period. During this time, staked tokens remain locked, and no new rewards accrue.

- Full Recovery: After the notice period, users may claim the entire balance, including principal and all rewards earned prior to initiating the notice.

- Preserves Token Value: This delay mechanism supports protocol health by reducing sudden sell pressure and allowing treasury planning. Option 2: Immediate Unstake — Early Exit with Penalty For users needing instant liquidity, Hydra Swap offers an immediate withdrawal option—with a 25% penalty applied to the total staked amount.

- Instant Access: Users can withdraw their full balance (100% of staked tokens + earned rewards) at any time.

- Penalty Structure: A flat 25% deduction is applied to the total, and the penalized amount is permanently removed from circulation via token burn.

- Deflationary Contribution: This penalty helps offset the impact of early exits while contributing to Hydra’s deflationary supply model. Unstaking Rule: All or Nothing To maintain simplicity and smart contract efficiency, partial withdrawals are not supported. Users must unstake their full balance when opting out of the staking program—regardless of the method selected.