Validator penalty (slashing)
Slashing is a penalty that certain networks provide for validation offenses, such as conflicting messages. It can reduce the value in staking; the effect on delegators depends on the network and on the conditions of the service.
O alcance de cada cobertura depende das condições expressas no contrato.
How it happens
- Taking part in validation follows the consensus and penalty rules of the network chosen. Whoever delegates needs to know how those rules reach their position.
- An offense set out in the rules, such as signing conflicting messages, can produce evidence of behavior that may be penalized.
- The network applies the corresponding procedure and penalty. The size of the penalty and the other effects depend on the rules and on the incident.
- Depending on the network and the service, part of the loss can reach whoever delegated, even without having operated the validator.
An example, with no proper name
In a hypothetical situation, an operator runs two instances with the same key during a migration. If they sign conflicting messages for the same function and the same period, they can produce an offense subject to slashing. The rule deals with the signed behavior, regardless of any intention to avoid an interruption.
The example describes the mechanism, not a real incident. Concrete cases in this segment belong to the people who lived them, and presenting them here would suggest an involvement that did not happen.
What the impact is
Consult the rule to identify the reduction in value and the effects on rewards, exit and delegation. A penalty and mere unavailability should not be treated as if they always produced the same result.
What reduces the exposure
- Map the dependencies among operators, networks and infrastructure. Different names may share a provider or an operational process.
- Consult the published records of availability and of penalties, noting the period and the source. A history with no incidents does not guarantee the absence of future events.
- Read which behaviors are penalized and how far the loss can reach on the network and in the service. Also check how the penalty is attributed to delegators.
What a claim in this family needs to prove
- The validator identifier and the epoch in which the penalty was recorded.
- The record of the penalty on the network itself.
- The protected address declared at purchase, corresponding to the delegation.
The exact requirement is the one in the published version of the purchased coverage contract. This list is what is usually necessary in this family.
Coverages in this family
What the operator has already published for Validator penalty (slashing).
No coverage in this family has been published yet. The risk is still recognized by the product. What does not exist yet is the corresponding offer.
FINOVEX Capital Protection
If it happens, this is the process.
See the steps for submission, review and decision. Decisions to approve, deny or pay require a second authorized person, and the process is recorded.
Consulting this site does not create coverage. Protection applies to the covered events and to the conditions of the collective policy.