Explanation
Even an honest validator can be slashed through a technical fault, such as double signing. Staking through a provider shares that risk.
01
Punishment for misbehaviour
A validator signing two conflicting blocks or staying offline for long loses part of its collateral. Double signing is the serious offence and can cost a large share of the stake; simply being offline usually costs only missed rewards plus a small penalty.
02
What it means for you
If you stake via a platform you share that risk without controlling the operation. Ask about the operator's track record, whether insurance or a compensation scheme exists, and how the infrastructure is distributed. A provider running everything in one data centre is vulnerable to a single outage.
Key takeaways
- Double signing is the gravest fault.
- Being offline mainly costs missed rewards.
- Ask about your operator's track record.