Setora Labs | Synthetic Dollar using Solana
  • Overview
    • Welcome to Setora Labs
    • USS vs eUSS
    • Problems We Solve
      • Stablecoins are Important
      • Centralized Stablecoins Sucks
      • DeFi Alternatives to Centralized Stablecoins
      • Why Synthetic Derivative-Backed Dollar?
      • Why Solana?
    • Founding Team
    • 100% Mottos
  • Documents
    • How USS and eUSS Work
      • Delta-Neutrality
      • [eUSS] Underlying Derivatives: Perpetual Contracts
      • Hedging Mechanism
    • Let's Talk Yield
      • Yield Explanation
      • Historical Yield
    • Liquidity and Scalability
      • Staked SOL Markets
      • [eUSS Only] SOL Perpetual Market
    • Backtesting Our Model
    • Development Roadmap
  • Risk Management
    • Risks
      • Collateral Risk
      • Exchange Failure Risk
      • Custodial Risk
      • [eUSS Only] Funding Rate Risk
    • Audits
  • Tokenomics
    • $TORA
    • $veTORA
  • Instruction
    • Get Started
    • How to Mint / Redeem USS, eUSS
  • Resources
    • FAQ
    • Important Links
    • Contract Addresses
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On this page
  • Jito Custodial Risk
  • Jito Validator Risk
  1. Risk Management
  2. Risks

Custodial Risk

There is essentially very minimal custodial risk involved in staking with Jito Network

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Last updated 10 months ago

Jito Custodial Risk

Liquid staking with Jito is non-custodial, meaning Jito does not have access to the funds deposited in jitoSOL. In the event that Jito ceases to operate, holders can still withdraw their SOL from validators along with any accumulated rewards.

Jito Validator Risk

Validator risk when staking Solana refers to the potential risks and consequences associated with the performance and reliability of the validators to which staked assets are delegated.

  1. Slashing Risk: Validators can be penalized for malicious behavior or performance issues, such as double-signing transactions or prolonged downtime. This penalty, known as slashing, can result in a loss of a portion of the staked assets.

  2. Downtime Penalties: Validators must maintain high uptime to secure the network. If a validator experiences significant downtime, it may incur penalties, reducing the rewards for the stakers.

  3. Validator Security: If a validator's private keys are compromised due to hacking or other security breaches, the staked assets could be at risk. This could lead to loss of funds or control over the staked assets.

  4. Performance Risk: Poorly performing validators may not efficiently participate in the consensus process, leading to lower rewards for the stakers. Consistent underperformance can reduce the expected returns from staking.

We deem validator risk when staking with Jito is quite minimal given that Jito Network has a large validator pool with more than 160 validators by May 2024. This diversifies away risk of individual validator.

As for security of the whole staking pool, jitoSOL is built on the stake pool program developed by Solana Labs. This program has supported numerous implementations since the network's launch and has undergone extensive.

However, . To manage this risk, Jito employs a multi-signature operation involving over five members of the founding team. Any changes require a majority agreement from the team. Over time, Jito aims to diversify this group to include other respected members from the Solana community.

Jito does control validator selection and fees