Owning BENQI (QI): Uses, Storage and Risks

BENQI is a decentralized lending and borrowing protocol built on Avalanche. You can deposit supported digital assets to earn interest or borrow against collateral; borrowing is over-collateralized, so you generally need to put up more value than you borrow. Rates and collateral rules can change, so check the current terms before supplying assets or opening a loan.

QI is BENQI’s token, associated with governance of the protocol. Holding QI does not by itself deposit funds into BENQI, earn lending interest, or guarantee voting power on every decision. Those actions depend on how the protocol’s governance is operating and what you do with the token. Keep QI separate in your mind from assets you supply to the lending market: each can have different risks and uses.

QI is issued on Avalanche. It is not the network’s native gas token, so you may need a separate balance of Avalanche’s native token to pay transaction fees when sending QI or using Avalanche applications. Confirm the exact network and token details in your wallet before transferring; sending a token to an address on the wrong network can make it difficult or impossible to recover.

You can hold QI in a self-custody wallet that supports the relevant Avalanche token, or use a custodial service that supports QI deposits and withdrawals. With self-custody, you control the recovery phrase and are responsible for protecting it. A hardware wallet can keep signing keys offline, but it does not protect you from approving a malicious transaction or entering the wrong recipient address. Check that any wallet or exchange supports the specific QI asset you intend to use.

The reported supply is 7.2 billion QI in circulation, with 7.2 billion total and maximum supply, as of November 8, 2026. That means the reported circulating supply equals the stated cap; it does not mean QI’s market value is fixed. Token prices can move sharply, and supply figures or market conditions can change.

Treat QI’s token price separately from the returns on assets deposited into BENQI. Lending rates depend on market conditions and are not guaranteed by simply owning QI. If you are comparing a possible protocol return with the value of your token holdings, account for transaction costs, asset-price changes, and the possibility that you may not be able to withdraw or trade at the price you expect.

The main risks are token-price volatility, protocol and smart-contract failure, and mistakes when signing transactions. A bug, exploit, or outage could affect assets used in a DeFi protocol. If you borrow, a fall in the value of your collateral can put your position at risk of liquidation under the protocol’s rules. Interest rates and transaction costs can also change, so check them before committing funds.

If you use BENQI’s liquid-staking products, consider additional risks: the liquid-staking token may not always trade at the same value as the underlying staked asset, and access to the underlying asset can depend on protocol and network processes. To reduce avoidable custody risks, keep your recovery phrase offline, never share it, and verify transaction details before signing. Do not use funds you cannot afford to lose.