Is there any risk staking MIR in governance?

Hi, I’ve been invested in BTC, ETH and EOS since 2017, but brand new to MIR and trying to understand the risks involved.
Two questions on risks of staking:

-Is there any risk of loss when staking MIR in governance and how quickly can I unstake and sell if needed?

-If staking in an asset pool and impermanent loss occurs, can you recover your loss by simply holding on for a long enough time as with the stock market when it crashes? Just trying to understand if it’s just a matter of holding and letting the market recover or if this is something completely different.

Thank you in advance for any insight you can give me on this.
Steve

Hey Steve,

  • There is no risk like in a liquidity pool that the size of your MIR position could drop. Of course, there is smart contract risk - as always in crypto. You can unstake and sell immediately. But remember that your MIR are locked if you have voted for a proposal for the time of the voting. Normally a few days.

  • As is the stock market is not sure if prices will recover. Since MIR liquidity pools are paired with UST your risk is not a ratio of two assets but just the price fluctuation of one asset. So it is similar to the stock market. Also, take into account that impermanent loss is your loss compared to a buy-and-hold position not compared to your invested capital. You suffer from impermanent loss when the asset goes up or down in price. But if it is going up, then your position is still making gains - just not as many compared to buy and hold.