How it works
Networks use different triggers and penalty sizes. Some punish double-signing heavily while treating downtime differently.
What to check
Read the protocol's official slashing rules and the staking provider's policy on whether customer losses are absorbed or passed through.
- Read protocol penalty rules
- Check provider loss-sharing policy
- Understand validator dependence
Limits and risks
Delegators can be exposed to behavior they do not control. Provider marketing about staking should therefore be checked against both protocol rules and legal terms.
Primary sources
Bitcoin Developer Reference↗Ethereum developer documentation↗FATF: Virtual Assets↗General information only. Investment products can lose value, and terms, fees and regulation can change.