What Are the Risks a Validator Faces When Staking ETH?

Validators face several operational and financial risks. Operational risks include hardware failure, power outages, and incorrect client configuration, leading to minor "inactivity" penalties.

Financial risks include the risk of "slashing" for malicious behavior, which burns a portion of their stake. Furthermore, validators face market risk, where the value of their staked ETH may decline relative to other assets.

The staked ETH is also locked and illiquid for a period.

What Is the Concept of ‘Slashing’ in Staking?
What Is ‘Slashing’ in a PoS System?
What Is “Slashing” in a Proof-of-Stake System and How Does It Deter Malicious Behavior?
What Is the Concept of “Slashing” in a Proof-of-Stake Consensus Mechanism?
What Is the Difference between ‘Slashing’ and ‘Inactivity Leak’?
How Can a PoS Validator Be Penalized for Malicious MEV Extraction?
What Are the Primary Risks Associated with Staking Cryptocurrency?
What Is “Slashing” and How Does It Deter Malicious Behavior in PoS?

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