# Non-custodial vs custodial staking

> In non-custodial staking you keep control of your keys and assets while they earn protocol rewards; in custodial staking a third party, such as an exchange, holds them for you. The difference decides who you must trust, whether funds are locked while staked, and whether you share slashing penalties. Cardano delegation is fully non-custodial, with no lock-up.

**In one line:** Custody decides who can move your assets; on Cardano, delegation leaves them in your wallet with no lock-up and no unbonding.

In [non-custodial](/yield/glossary#non-custodial) staking you keep control of your keys and assets while they earn protocol rewards; in [custodial](/yield/glossary#custodial) staking a third party, such as an exchange, holds them and you rely on it to give them back. Custody decides who you must trust, and each chain then adds its own rules on lock-ups and [slashing](/yield/glossary#slashing). Cardano delegation is non-custodial with no lock-up, which is why Gatewayz started its yield-as-inference program with ADA.

## Key takeaways

- Non-custodial means no one else can move your assets; custodial means a third party holds them or their keys.
- Custody is only one axis: lock-ups, [unbonding periods](/yield/glossary#unbonding-period) and slashing differ by chain even when you keep your keys.
- Cardano delegation keeps ADA in your wallet, spendable, with no lock-up; you can switch pools at any time.
- Polkadot unbonding takes 28 days and Ethereum exits go through a queue; both chains can slash stake.
- Exchange staking adds counterparty risk on top of whatever the chain itself imposes.

## What is the difference between custodial and non-custodial staking?

The difference is who controls the keys. In non-custodial staking, your own keys authorize staking and only you can move the assets; the protocol pays rewards to an account you control. In custodial staking, you hand the assets, or the keys to them, to a third party that stakes on your behalf and credits you.

Non-custodial does not always mean the asset stays put. On some chains the asset moves into a protocol account or a pool contract that only you can withdraw from; on Cardano it does not move at all. Custodial always means you hold a claim on a third party rather than the asset itself.

## How does custody compare across chains?

It varies widely. The table summarizes how native staking works on six options, from primary sources as of 2026-10-27.

| Option | Who controls the asset | Lock-up / unbonding | Slashing |
| --- | --- | --- | --- |
| **Cardano delegation** | You: ADA stays in your wallet, spendable | None; switch pools any time | None for delegators |
| **Ethereum validator** | ETH locked in a validator; leaves only to a withdrawal address set once | No fixed period; exits queue (about 3.5 to 7 days for 400k to 800k withdrawals, per ethereum.org) | Yes: under 0.1% alone, up to 100% in a correlated mass event |
| **Ethereum pooled staking** | Not native to Ethereum; terms set by the pool | Set by the pool | Set by the pool |
| **Solana stake account** | Your stake account; only your withdraw authority can move funds | Deactivation takes several epochs; duration hard to predict | Not active in the protocol today |
| **Polkadot nomination pool** | Bonded DOT stays in your own account, locked | 28 days (28 eras) | Yes: members share a slash of a validator the pool backs |
| **TON pool contract** | TON is transferred into a pool smart contract | Frozen for the round plus a hold period; pool withdrawals may queue | Yes: validator's balance first, then nominators proportionally |
| **Exchange staking** | The exchange holds your assets | Set by the exchange's terms | Depends on the exchange's terms |

Each chain has its own page with more detail: [ETH](/yield/assets/eth), [SOL](/yield/assets/sol), [DOT](/yield/assets/dot) and [TON](/yield/assets/ton).

## What does custody change?

Custody changes three things: who you have to trust, whether you can get out quickly, and who bears penalties.

**Counterparty risk.** With custodial staking you rely on the custodian to stay solvent, honest and operating, and to return your assets when you ask. With non-custodial staking there is no one to rely on for the principal; your exposure is to the protocol and the asset's price.

**Lock-ups.** A lock-up is set by the chain or by the custodian. Polkadot's 28-day unbonding applies whether or not you hold your own keys, and a custodian can add its own terms on top. Cardano has none: your ADA is spendable throughout.

**Slashing exposure.** On chains with slashing, a validator's provable misbehavior burns stake. On Ethereum, double signing can cost under 0.1% if a validator is slashed alone and up to 100% in a correlated mass event. On Polkadot, all active nominators of a slashed validator are slashed, as are members of a pool backing it. In a TON nominator pool, the validator's balance absorbs penalties first and any remainder is shared by nominators. Solana has no slashing in the protocol today, though it is on the roadmap.

## Is Cardano staking custodial?

No. Cardano staking is [delegation](/yield/glossary#delegation): a [delegation certificate](/yield/glossary#delegation-certificate) assigns your stake to a pool without transferring your ADA. Your ADA stays in your wallet and can be spent at any time, there is no lock-up, and you can switch pools whenever you like. The pool operator never holds your ADA.

## Why did Gatewayz start with ADA?

Because Cardano's native model needs no custody, no lock-up and no smart contract. For ADA, delegation is a native Cardano certificate, Gatewayz has no contract holding funds, and it cannot move your ADA. Leaving is a redelegation in your wallet and is never blocked.

That lets the program hold one promise cleanly: your principal stays yours, and the only thing that changes is what the rewards become. Other assets are on the [assets](/yield/assets) list, and their pages explain how each chain's staking and custody would work; for example, Solana supports native delegation from your own wallet, the same non-custodial model as Cardano. Assets that need contracts or lending will list their contract risk on their own page. What Gatewayz can and cannot touch is on [Security](/yield/security), and the remaining trade-offs are on [Risks](/yield/risks).

- **Your ADA.** Delegation never moves your ADA. There is no Gatewayz contract holding it and no lock-up. Your ADA's market price still moves, as it would in your wallet anyway.
- **Rewards you give up.** The pool takes nearly all of its rewards as its fee (99% margin plus Cardano's minimum fixed cost), so you do not receive ADA staking rewards while delegated. You receive an inference discount instead.
- **Pool performance.** Rewards depend on the blocks the pool mints. A new or small pool mints blocks less often, so its rewards vary more from epoch to epoch, and an epoch with no blocks has nothing to share.

## Frequently asked questions

### Is non-custodial staking safer than custodial staking?

It removes one risk: relying on a third party to return your assets. It does not remove the chain's own risks, such as lock-ups or slashing on chains that have them, or the asset's price risk. Compare both custody and the chain's rules.

### Can a Cardano stake pool take my ADA?

No. Delegation only assigns your stake to a pool. Your ADA stays in your wallet under your keys and remains spendable, and the pool operator has no way to move it.

### Does Cardano have slashing?

No, not for delegators. Cardano delegation has no slashing, no lock-up and no minimum amount ([Cardano.org Glossary: Staking](https://cardano.org/glossary/staking/)); a poorly run pool simply earns less, for example in an epoch where it mints no blocks or misses its pledge. The [Cardano Developer Portal](https://developers.cardano.org/docs/developers/curriculum/staking-governance/staking/) contrasts this with Ethereum, where validators can be slashed.

### Is exchange staking custodial?

Yes. When you stake through an exchange, the exchange holds your assets and stakes them on your behalf. Lock-ups, fees and how penalties are handled depend on the exchange's terms, and you rely on it to return your assets.

### Is Gatewayz custodial?

No, not for ADA. You delegate from your own wallet to the Gatewayz pool and link the wallet by signing a message. Gatewayz never holds your ADA and cannot move it.

## Sources

- [Cardano.org Glossary: Staking](https://cardano.org/glossary/staking/), as of 2026-10-28
- [Cardano Developer Portal: Staking](https://developers.cardano.org/docs/developers/curriculum/staking-governance/staking/), as of 2026-10-28
- [Cardano.org Glossary: Delegation](https://cardano.org/glossary/delegation/), as of 2026-10-27
- [Cardano.org: Stake your ada on Cardano](https://cardano.org/stake-pool-delegation/), as of 2026-10-27
- [ethereum.org: Staking](https://ethereum.org/en/staking/), as of 2026-10-27
- [ethereum.org: Staking withdrawals](https://ethereum.org/en/staking/withdrawals/), as of 2026-10-27
- [ethereum.org: Proof-of-stake](https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/), as of 2026-10-27
- [solana.com: Stake accounts](https://solana.com/docs/references/staking/stake-accounts), as of 2026-10-27
- [solana.com: Staking](https://solana.com/docs/references/staking), as of 2026-10-27
- [Polkadot Wiki: Nominator](https://wiki.polkadot.com/learn/learn-nominator/), as of 2026-10-27
- [Polkadot Wiki: Nomination pools](https://wiki.polkadot.com/learn/learn-nomination-pools/), as of 2026-10-27
- [TON docs: Staking overview](https://docs.ton.org/ecosystem/staking/overview), as of 2026-10-27
- [TON docs: Nominator pools](https://docs.ton.org/ecosystem/staking/nominator-pools), as of 2026-10-27

## Related

- [Is delegating ADA to a stake pool safe?](https://www.gatewayz.ai/yield/security)
- [Which crypto assets can pay for AI inference?](https://www.gatewayz.ai/yield/assets)
- [How Cardano staking works](https://www.gatewayz.ai/yield/learn/how-cardano-staking-works)
- [The risks of ADA delegation with Gatewayz](https://www.gatewayz.ai/yield/risks)
- [Use ETH staking rewards to pay for AI](https://www.gatewayz.ai/yield/assets/eth)

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Discounts are a share of staking rewards Gatewayz actually received, can change at any time, and are not a guaranteed return. Not available to US or Canadian persons. Every participant must confirm they are not a US or Canadian person before linking a wallet. Not investment, legal or tax advice. Figures as of 2026-10-27.

Updated 2026-10-28. Canonical page: https://www.gatewayz.ai/yield/learn/non-custodial-vs-custodial-staking