> For the complete documentation index, see [llms.txt](https://etherfi.gitbook.io/etherfi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://etherfi.gitbook.io/etherfi/security/security-and-risks/slashing-risk.md).

# Slashing Risk

Slashing is a penalty that Ethereum, and separately EigenLayer, can take out of staked ETH when a validator or operator breaks the rules. [ether.fi](http://ether.fi) helps secure Ethereum, and through EigenLayer it helps secure other services that run on restaked ETH, so it is worth being clear about where that penalty can come from and how much is at risk.

There are two places slashing can happen:

1. Ethereum validators.
2. EigenLayer services that restaked ETH helps secure.

### Ethereum validator slashing

Ethereum penalizes a validator when it provably breaks the rules, mainly by signing two conflicting blocks or votes. The validator pays an upfront penalty, is removed from staking, and pays a further penalty that grows if many validators are slashed in the same short window.

The upfront penalty is small. After the Pectra upgrade in May 2025 it dropped to one part in 4,096 of the validator's balance, which is about 0.008 ETH for a 32 ETH validator. Before Pectra it was about 1 ETH. The added penalty for correlated slashing only becomes significant if a large share of the whole network is slashed at the same time, which has never happened.

ether.fi stakes through a curated set of professional operators that run different software and infrastructure, which keeps the chance of a shared fault low. — **No ether.fi validator has been slashed since the protocol launched.**

ether.fi is also arranging slashing insurance; TBD.

### EigenLayer restaking slashing

When ETH is restaked through EigenLayer, the services it helps secure can also slash it. This only applies when every party opts in: the service has to turn on slashing, the operator has to sign up to secure it, and the protocol has to choose that operator. Which operators are signed up to slashable services is recorded on-chain and shown in the EigenLayer app, so anyone can check it.

ether.fi's restaked ETH is not signed up to any slashable service, and as a matter of policy ether.fi does not sign up to slashable services. — **There is no restaking slashing risk today.**

Separately, ether.fi is lowering how much of its ETH is restaked at all, from about half in early 2026 to under 20% by Q3 2026. This shrinks the restaking exposure overall, not only the slashable part.

### How much is at risk

<table><thead><tr><th width="121.955810546875">Where</th><th>What triggers it</th><th>Most that can be lost</th><th>Today</th><th>Backstop</th></tr></thead><tbody><tr><td>Ethereum validator</td><td>Signing conflicting blocks or votes</td><td>About 0.008 ETH per 32 ETH validator; more only in a network-wide event</td><td>Spread across diverse operators; never slashed</td><td>Insurance (TBD)</td></tr><tr><td>EigenLayer restaking</td><td>A service's slashing rule is broken</td><td>Limited to what is signed up to slashable services</td><td>Nothing signed up with slashable AVS</td><td>Policy of not joining slashable services, plus lowering the restaked share</td></tr></tbody></table>

Because none of ether.fi's restaked ETH is signed up to slashable services, the restaking slashing risk is effectively zero today, and the overall restaked share is being cut to under 20% by Q3 2026.


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