How Does a ‘Margin Call’ in Derivatives Compare to the Security Mechanism of ‘Slashing’ in PoS?
A margin call occurs when the collateral in a derivatives trading account falls below the maintenance margin level, requiring the trader to deposit more funds or face liquidation. Slashing is the automatic forfeiture of a validator's staked collateral due to a breach of protocol rules.
Both are economic penalties triggered by a breach of a predefined security or solvency threshold. The margin call aims to maintain solvency; slashing aims to enforce honest behavior.