> For the complete documentation index, see [llms.txt](https://bitcoin-munari.gitbook.io/bitcoin-munari-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitcoin-munari.gitbook.io/bitcoin-munari-whitepaper/validator-network-architecture/slashing-and-penalties.md).

# Slashing and Penalties

To maintain network integrity, validators face penalties for malicious or negligent behavior:

**Slashing Conditions:**

* **Double signing**: Validator signs two conflicting blocks (5-10% stake slashed)
* **Extended downtime**: More than 48 hours offline without notice (1-3% stake slashed)
* **Invalid transactions**: Attempting to validate fraudulent transactions (10-20% stake slashed)
* **Coordination attacks**: Participating in 51% attacks (100% stake slashed + permanent ban)

**Grace Periods:**

* **First-time minor infractions**: Warning with 24-hour grace period
* **Scheduled maintenance**: Validators can announce downtime to avoid penalties
* **Network-wide issues**: No slashing during verified network outages

**Slashed Fund Distribution:**

* 50% burned (removed from circulation)
* 50% distributed to honest validators as bonus rewards