Slashing is a mechanism built into Proof of Stake networks to discourage validators’ misbehaviors. Slashing penalties affect both validators and token holders and vary depending on the network. They typically involve partial or entire loss of existing funds and may have temporary or permanent suspension from the active set, resulting in missed rewards during the time the validator is not in the active set.
Figment offers peace of mind to its customers by operating a robust infrastructure strategy and the most holistic coverage in the space so that risks and impact of slashing events are drastically reduced.
We quantify risk exposure per network and protect client delegations through multiple layers of coverage, mitigating the three kinds of loss:
If you want to learn how Figment mitigates staking-type risks and protects against loss of funds, please reach out through the contact form below.
To learn more about common slashing risks and correlated penalties read here.
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