Validator & Staking Risk
Slashing is measured in days and dollars.
Running validators exposes you to protocol-enforced penalties. A double-sign event can destroy a share of stake in a single epoch; extended downtime erodes rewards; and assets in an unbonding period are exposed to events you cannot exit from. This cover quantifies and transfers that operational exposure.
Maximum available limit CAD 15 million, subject to underwriting
What the cover addresses
Slashing penalties
Stake destroyed by protocol slashing following a double-sign or equivocation event.
Downtime penalties
Penalties for missed attestations beyond a defined threshold caused by an infrastructure failure.
Unbonding loss
Covered loss events occurring while stake is locked in the unbonding period.
Delegator reimbursement
Your contractual liability to reimburse delegators for a covered slashing event.
Conditions underwriters expect
- Remote signer with slashing protection
- 24/7 monitoring and alerting
- Documented key migration procedure
- Client diversity policy
Not covered
- Variability in staking rewards
- Penalties applied network-wide by protocol failure
- Validators without monitoring and alerting
- Key migration performed outside procedure