How Does This Problem Relate to the Finality of Settlement for Derivatives Contracts?

The 'nothing-at-stake' problem directly threatens the finality of settlement. If a malicious validator can vote on multiple chain histories without penalty, the settled state of a smart contract-based derivatives trade could be reversed or invalidated.

Derivatives contracts, such as options, require absolute certainty on the price and execution time. Lack of finality introduces counterparty risk and systemic risk to the decentralized financial system.