Coinbase added a new section to its User Agreement governing third-party liquid staking tokens (Third-Party LSTs). The updated terms explain how users can wrap staked assets into these tokens and later unwrap them, clarify that Coinbase facilitates but does not control the underlying protocols, and establish that users bear the risks of validator penalties, protocol failures, and price volatility. The terms also state that Coinbase does not guarantee the value, security, or successful redemption of Third-Party LSTs.
The updated terms establish a new section governing third-party liquid staking tokens held in Coinbase accounts. The agreement clarifies that when users wrap staked assets into these tokens, Coinbase facilitates the blockchain operations but does not control the underlying protocols, mint the tokens, or hold the underlying assets. The terms state that users remain entitled to the economic value and rewards of the underlying staked asset but bear all risks, including validator penalties, protocol failures, and price volatility. Coinbase explicitly does not guarantee the value of the underlying asset, the security of third-party protocols, or successful unwrapping or sale of the tokens. Users can wrap eligible staked assets and later unwrap them subject to protocol timing and eligibility requirements.
→ Review Section 1.9 of the User Agreement if you hold or plan to wrap staked assets into third-party liquid staking tokens.
→ Understand that wrapping locks your asset in the third-party protocol until you unwrap it, and unwrapping may not be immediate.
Coinbase disclaims liability for validator penalties, protocol failures, price volatility, and unsuccessful unwrapping; users bear all protocol-level risks.
Coinbase facilitates blockchain operations but does not govern third-party protocols or underlying networks.
This change record describes what was added, removed, or modified in the document. Analysis reflects what the updated agreement states or permits. It does not constitute a legal determination about enforceability. Applicability may vary by jurisdiction. Methodology
Wording edits to this record that do not change what it claims. Changes to a claim are published as corrections.
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