Risk Disclosure

1.1 Slashing Risk

Staked SOL is delegated to the Toshi CSS validator. If the validator engages in malicious behavior (e.g., double-signing) or experiences extended downtime, the Solana network may impose penalties (“slashing”) that reduce your staked principal. While the Toshi CSS validator maintains strong performance, no validator is immune to slashing events, including those caused by infrastructure failures, software bugs, or network-level attacks.

1.2 Reward Variability

Staking rewards are determined by the Solana network protocol and fluctuate based on:

• Validator performance (vote success, vote accuracy, skip rate)
• Total SOL staked across the network
• Solana’s inflation schedule (which decreases over time)
• Network congestion and epoch timing

Advertised APY figures are estimates based on historical data and are not guaranteed. Actual returns may be higher or lower.

1.3 Lockup and Illiquidity

When you unstake SOL, a cooldown period of approximately 2–4 days (one Solana epoch) is required before your tokens become available for transfer. During this period:

• You do not earn staking rewards on the unstaking amount.
• You cannot transfer or sell the unstaking SOL.
• If SOL price drops significantly during cooldown, you cannot exit your position until the cooldown completes.

2.1 Price Volatility

The value of SOL tokens is highly volatile and can fluctuate significantly over short periods. You may experience substantial losses in fiat-equivalent value even while earning staking rewards. Staking rewards denominated in SOL do not protect against price declines.

2.2 No Guaranteed Returns

Toshi CSS does not guarantee any specific return, yield, or financial outcome. Past staking performance, including historical APY, is not indicative of future results. The total return on your staked SOL depends on both staking rewards and the market price of SOL, either of which may move against you.

3.1 Smart Contract and Protocol Risk

Solana staking relies on the Solana runtime and native staking program. While these have been extensively audited, bugs or vulnerabilities in the protocol could result in loss of staked funds, incorrect reward distribution, or network downtime.

3.2 Wallet and Account Security

GrandmaStake offers two wallet modes: a managed wallet (where we create and store an encrypted wallet on your behalf) and a bring-your-own-wallet (BYOW) path (where you connect Phantom, Solflare, Ledger, etc.).

For managed wallets, the security of your funds depends on:

• The confidentiality of your passphrase
• The offline safety of your 12-word recovery phrase backup
• The security of our server infrastructure and encrypted database
• The integrity of our AWS Nitro Enclave signing environment

For BYOW wallets, the security of your funds depends entirely on the security of your connected wallet. Additional risks include vulnerabilities in wallet software, compromised devices or browsers, phishing attacks, and malicious browser extensions.

In both cases, your recovery phrase (or seed phrase) is your ultimate backup and your unconditional proof of ownership on the Solana blockchain.

3.3 Passphrase Loss and Credential Recovery

3.4 Stake Account Authority Structure

Solana stake accounts carry two independent on-chain authorities:

• Stake authority — permits delegation, undelegation, redelegation, and merging. For managed-wallet stake accounts, this authority is held by Toshi CSS to perform routine staking logistics on your behalf.
• Withdraw authority — the only credential that can move or liquidate the SOL in a stake account. This authority is held exclusively by your wallet. Toshi CSS never holds it and cannot exercise it.

Because Toshi CSS holds only the stake authority, it can manage staking operations but cannot withdraw, redirect, or liquidate your staked SOL under any circumstances. Your withdraw authority is your unconditional break-glass control — it is enforced cryptographically by the Solana protocol and cannot be overridden by Toshi CSS, its employees, or any third party.

3.5 Network Risk

The Solana network may experience congestion, outages, or degraded performance. During such events, staking, unstaking, and transfer transactions may be delayed or fail. Network-wide issues are outside the control of Toshi CSS.

3.6 Service Provider Risk

GrandmaStake is a convenience service. Your on-chain SOL and staked assets exist independently on the Solana blockchain and do not depend on GrandmaStake’s continued operation. However, access to your wallet through GrandmaStake’s interface depends on our servers being available and our database being intact.

• Your on-chain assets are always yours. In the event of any service disruption, your SOL and staked positions remain on the Solana blockchain unaffected.
• Recovery phrase is your independence. With your 12-word recovery phrase, you can access your funds through any Solana-compatible wallet application at any time, independent of GrandmaStake.
• Without your recovery phrase.If you do not have your recovery phrase backup and GrandmaStake’s service is unavailable, access to your funds through our platform would be interrupted. This risk is solely mitigated by keeping your recovery phrase backed up offline and securely.

The Solana blockchain — not GrandmaStake — is the authoritative record of your wallet balance and ownership. Your private key and recovery phrase are the definitive credentials that prove that ownership.

4.1 Regulatory Uncertainty

The regulatory landscape for digital assets and staking services is evolving and varies by jurisdiction. Changes in law or regulation may:

• Restrict or prohibit staking services in certain jurisdictions
• Impose licensing, registration, or reporting requirements on the Platform
• Classify staking rewards as taxable income or securities
• Require the Platform to modify or discontinue certain features

4.2 Tax Obligations

Staking rewards may be subject to income tax, capital gains tax, or other taxes in your jurisdiction. You are solely responsible for determining your tax obligations and filing appropriate returns. Toshi CSS does not provide tax advice and does not report to tax authorities on your behalf.

4.3 Sanctions Compliance

Use of the Platform by persons or entities subject to economic sanctions is prohibited. Access to the Platform may be restricted in certain jurisdictions to comply with applicable sanctions laws.

• Solana RPC Providers: The Platform relies on Solana RPC endpoints for on-chain data and transaction submission. RPC provider outages may temporarily affect Platform functionality.
• Wallet Providers: The security and availability of your connected wallet (Phantom, Solflare, Ledger) is governed by the wallet provider. Toshi CSS is not responsible for vulnerabilities or outages in third-party wallet software.
• Price Feeds: SOL price data is fetched from third-party sources and may be delayed or inaccurate. Price display is for informational purposes only.

All stakes through Toshi CSS are delegated to a single validator:

• Concentration Risk: Your stake is not diversified across multiple validators. Poor performance or failure of this single validator directly impacts all your staked SOL.
• Commission Changes: The validator may change its commission rate. Commission increases reduce your net rewards.
• Validator Discontinuation: If the validator ceases operations, your SOL remains staked but stops earning rewards until you unstake and re-delegate (which you can do via any Solana wallet interface).

Nothing on the Toshi CSS platform or in our communications constitutes financial, investment, legal, or tax advice. All information is provided for informational purposes only. You should consult qualified professionals before making any financial decisions. The decision to stake SOL is yours alone, and you bear full responsibility for the outcomes.

For questions about risks associated with the Platform:

• Email: info@toshicss.com
• Support: info@toshicss.com