Slashing

Programmatic confiscation of a validator's stake for provably malicious behavior such as double signing (attesting to two conflicting blocks). Prolonged downtime triggers inactivity penalties, a gradual balance reduction that is distinct from slashing but similarly erodes capital. Restakers can be slashed by any AVS they opt into, compounding the risk surface. Unlike a fine or penalty in TradFi, slashing is automated, immediate, and irreversible.