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A lock-up period is a period defined by protocol rules during which an asset remains locked and cannot be freely used by its owner. In staking, a lock-up can apply to the initial commitment of funds, the staking position itself, or a period following an exit request.
A lock-up period is not a universal property of every PoS network. Some protocols allow relatively quick withdrawals, others use a fixed lock-up, and others rely primarily on a separate unbonding period.
The longer capital remains locked, the lower its immediate liquidity. This matters when the asset might otherwise be needed for a swap, lending, trading, or another operation.
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