# Step 8: Deposit SD collateral

The SD token plays a vital role in the Stader platform, serving as the governance token. It allows the Stader community to actively participate in shaping the platform's direction. Therefore, to add a validator to the nodes on the Stader Network, permissionless node operators are required to bond SD collateral for each validator. In return, the node operators receive SD rewards for their bonded SD collateral.

### Run the below mentioned command to deposit SD as collateral. 

**`~/bin/stader-cli node deposit-sd --amount <0.4ETH worth of SD>`**&#x20;

Please ensure to replace the placeholder "<0.4ETH worth of SD>" with the specific amount of SD tokens you intend to deposit. The minimum deposit requirement is 0.4ETH worth of SD, while the maximum allowed deposit is 8ETH worth of SD. The exact value will vary dynamically based on the current price of ETH and SD.

**To get the amount of SD bond you can:**

* Manually calculate 0.4ETH worth of SD amount OR
* Install Grafana dashboard and get the 10% SD bond number. You can install the dashboard by following the steps provided in the Node Monitoring section.

{% hint style="success" %}
**Note**

* SD collateral snapshots are taken daily at a random block. Therefore, if the SD collateral value falls below the 10% limit, the node operator will not earn SD rewards for that day.
* We recommend maintaining an SD collateral buffer (above the 0.4 ETH worth of SD limit) to avoid any reward loss due to price fluctuations.
* You can deposit more than 8ETH worth of SD as collateral, but any SD collateral exceeding the 8ETH limit will not earn SD rewards.
* For SD collateral withdrawal, the node operators can withdraw any collateral exceeding the 200% SD collateral limit (8 ETH worth of SD). To withdraw the entire SD collateral, the node operator will need to exit the validators.
* Before depositing SD collateral, you will first need to give approval to the collateral contract to access your SD token. This approval step will only be done once.
  {% endhint %}

**SD token address (Mainnet) :** [0x30D20208d987713f46DFD34EF128Bb16C404D10f](https://etherscan.io/address/0x30D20208d987713f46DFD34EF128Bb16C404D10f)

**SD token address (Testnet):** [0x0406f539f24Be69baa8b88ED6eABEdb7b3cfdc60](https://etherscan.io/address/0x0406f539f24Be69baa8b88ED6eABEdb7b3cfdc60)

**Testnet SD tokens:** To receive the Testnet SD tokens for deposit, please visit our [Discord ETHx channel](https://discord.com/channels/839544036984750120/1079816702017155072) and share your Operator Address with our moderators.


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