Slashing penalizes storage providers that either fail to provide reliable uptime or act maliciously against the network. In Filecoin, storage providers are succeptible to two different kinds of slashing: storage fault slashing, and consensus fault slashing.

Storage fault slashing

This term encompasses a broader set of penalties which are to be paid by storage providers if they fail to provide sector reliability or decide to voluntarily exit the network. These include:

  • Fault fees: a penalty that a storage provider incurs for each day a storage provider’s sector is offline (fails to submit Proofs-of-Spacetime to the chain). Fault fees continue until the associated wallet is empty and the storage provider is removed from the network. In the case of a faulted sector, there will be an additional sector penalty added immediately following the fault fee.
  • Sector penalties: a penalty that a storage provider incurs for a faulted sector that was not declared faulted before a WindowPoSt check occurs. The sector will pay a fault fee after a Sector Penalty once the fault is detected.
  • Termination fees is a penalty that a storage provider incurs when a sector is voluntarily or involuntarily terminated and is removed from the network.

Consensus fault slashing

This penalty is incurred when committing consensus faults. This penalty is applied to storage providers that have acted maliciously against the network’s consensus functionality.