Trading glossaryReviewed 16 July 2026
Definition
Principal is the original amount of money committed, borrowed, or placed into a product before adding interest, rewards, fees, gains, or losses.
In market context
In fixed-term savings, principal is the base on which interest is usually calculated and the amount expected back under the contract’s repayment terms. In staking, the committed asset units may remain exposed to price movement and protocol penalties while rewards accrue separately. Users should verify whether fees or early-withdrawal penalties can reduce principal and whether any repayment protection applies if the provider fails.
Source
Use the primary source for fuller regulatory or market context.