How Does a Margin Call Differ from a Slashing Event in Terms of Trigger? ▴ Learn

How Does a Margin Call Differ from a Slashing Event in Terms of Trigger?

A margin call is triggered by adverse market movement causing the value of a trader's collateral to fall below the maintenance margin level, signaling insufficient funds to cover potential losses. A slashing event is triggered by a validator's misbehavior or failure to perform their duties honestly, as proven by on-chain cryptographic evidence.

One is a response to market risk, the other to security risk.

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