How Does the Threat of Slashing Affect a Validator's Risk Management Strategy? ▴ Learn

How Does the Threat of Slashing Affect a Validator’s Risk Management Strategy?

The threat of slashing forces validators to implement rigorous operational risk management, including robust security measures, redundant infrastructure, and failover systems. They must actively monitor network conditions to avoid accidental double-signing.

This risk can also be partially hedged by using insurance protocols designed to cover slashing losses.

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