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Deregistration

Deregistration allows registered validators to leave Overlap and withdraw their stake.
The platform preserves their performance metrics and voting power.
Similar to registration, deregistration follows a cross-chain workflow where a validator’s state is updated on L2, and the funds are processed on L1.

Deregistration Process​

Leaving the platform is straightforward:

  1. Visit the Validators Page – Go to overlap.fi/validators.
  2. Open the Menu – Expand the burger icon and select the Deregister button.
  3. Confirm the request – Submit the transaction to process the deregistration request.
  4. Cross-Chain Finalization – Wait for finality. The protocol automatically synchronizes your status across Ethereum and Arbitrum.
  5. Exit the platform – Your validator profile is disabled, and your stake is withdrawn.
Deregistration Process
Flexible Exit

During deregistration, historical performance is traced across all assigned tasks.
A cumulative penalty is applied to the initial deposit.
The exiting validator receives an amount proportional to their performance while active.

Metrics and Penalties​

  • Clean record – Validators with consistent majority alignment receive no penalties.
  • Penalty deductions – Deviations from consensus introduce penalties that are subtracted from the total deposit.
  • Proportional penalties – Penalties are predictable, capped, and proportional to the degree of deviation.
  • Immutable preservation – A validator's performance index is not affected by deregistration. Overlap maintains a record of past performance even if a validator leaves.

Wish to Rejoin?​

Deregistration preserves your information for future participation:

  • Vote retention – Delegated votes remain associated with your profile as long as voters haven’t redirected their support.
  • Performance continuity – Your performance index stays intact, maintaining your historical metrics.
  • Immediate eligibility – Return from where you left off without starting over.