# Understanding the Risks

Staking $SQR involves interacting with a decentralized service via smart contracts. It's essential to know the inherent risks of decentralized finance (DeFi) and smart contract staking. These risks include potential vulnerabilities, market volatility, and the speculative nature of digital asset returns. Magic Square, through its decentralized system, does not control the staked assets or the functionality of the smart contract post-launch.


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