# FAQ: Self-custodial BTC Staking (Babylon)

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<summary><strong>Is my BTC safe?</strong></summary>

Absolutely. You never hand your coins to anyone.

* You sign a locking transaction from your own Bitcoin wallet.
* Your BTC stays at that address under your keys.
* Babylon Genesis simply verifies the lock on-chain to confirm it's valid for voting power and network security contribution.
* You (and only you) can unlock it once the timelock expires.

There’s no bridge, no wrapped token, and no smart contract risk.

This locking mechanism follows Babylon’s native BTC staking standard, end to end.

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<details>

<summary><strong>Does my BTC leave my wallet once staked?</strong></summary>

No, your BTC always stays in your own Bitcoin wallet. When you stake, your BTC is locked using a self-custodial Bitcoin staking script that you control. You're not sending it to anyone else.

However, current wallet softwares have not been updated to display staked BTC balances, so it might not show up but rest assured, it’s there, securely locked and verifiable on-chain.

You are the only one who can unbond the stake and withdraw.

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<details>

<summary><strong>How are yields generated?</strong></summary>

Your yield comes from two sources:

* **BTC staking rewards:** Your BTC contributes to Babylon’s finality providers, helping secure the Babylon Genesis chain.
* **Co-staking rewards:** Babylon Genesis offers additional incentives when BTC and BABY are staked together. Through b14g Merge Marketplace, your BTC can be matched with BABY stakers to earn these extra rewards, boosting your APY without requiring you to hold BABY.

Learn more: [Co-staking on Babylon](https://www.mintscan.io/babylon/proposals/15)

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<summary><strong>What is b14g Merge Marketplace?</strong></summary>

The b14g Merge Marketplace is an on-chain coordination layer that connects BTC stakers and BABY stakers for co-staking.

It solves a key problem in Babylon co-staking: most users only hold one asset (either BTC or BABY), but co-staking requires both. The marketplace bridges this gap by allowing:

* BTC stakers to list their BTC lock as an open order.
* BABY stakers to match those orders with their BABY stake.

Once matched, both sides share boosted co-staking rewards based on the ratio set in the Order.

In short, even if you only hold BTC or only hold BABY, the Merge Marketplace lets you earn co-staking yield without needing both assets.

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<details>

<summary><strong>Is my BTC ever held by b14g or Babylon?</strong></summary>

No.

Your BTC always stays in your own Bitcoin address, locked under Babylon’s native BTC staking mechanism.

b14g contracts only manage reward coordination and co-staking logic, never custody.

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<details>

<summary><strong>How are rewards paid out?</strong></summary>

Rewards are distributed per block in **BABY**, the native token of the Babylon Genesis Chain. Rewards are **NOT auto-compounded**, so you’ll need to **manually claim** them.

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<details>

<summary><strong>Why does the APR vary for each BTC lock?</strong></summary>

APR depends on multiple factors:

1. BABY emission from Babylon Genesis.
2. Finality Provider performance and commission rates.
3. The reward-sharing ratio set by each BTC Order.
4. The amount of BABY staked that joins your Order — more BABY staked means higher co-staking rewards.

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<details>

<summary><strong>What is slashing, and can it happen to me?</strong></summary>

Babylon has a slashing mechanism to keep the network secure. When you stake, you pre-authorize a slashing condition within the self-custodial Bitcoin staking script. If a cryptographic offense occurs, such as a Finality Provider (FP) you staked against double-signing, up to 0.1% of your BTC stake can be slashed (burned) without needing further authorization from you.\
\
Choose reliable finality providers to minimize risk.

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<summary><strong>What happens if I want to stop staking?</strong></summary>

You can unbond your BTC stake anytime you want. This starts a 301-block (\~3 days) unbonding period before your BTC becomes withdrawable.

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