# What precautions should be considered before staking $VENOM with Venom Pools? Staking tokens in Venom Pools is a relatively low risk investment mechanism because users do not suffer from impermanent loss as they do in cases of liquidity pools. Also, if there is no locking period, the tokens can be pulled out at any moment, thus if the owner expects that the tokens are going to significantly drop in value, the tokens can be pulled out. The main risk comes from the high volatility of crypto market itself. Some risks, however, do come straight from the Validators - there is a slight possibility of users losing part or all of their stake in case of a node malfunction or slashing – those are the penalties which would be incurred by Validators that make mistakes when they set up or configure nodes. Always do your own research. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.venompools.com/docs/general/what-precautions-should-be-considered-before-staking-usdvenom-with-venom-pools.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.