# Security

#### What is Slashing

Slashing is HIP-3's primary enforcement mechanism for market integrity. Stratium's 500K HYPE stake serves as collateral that can be partially or fully slashed for protocol violations.

#### How It Works

Slashing decisions are made by validators through stake-weighted voting. The amount slashed can range from partial to full confiscation. Slashed HYPE is burned (not redistributed), preserving platform neutrality.

Even during the \~8 day unstaking queue, the stake remains slashable.

#### Slashable Behaviors

According to Hyperliquid's documentation, slashing may occur for:

* Irregular inputs that harm protocol uptime
* Irregular inputs that threaten solvency
* Irregular inputs affecting protocol correctness
* Attempted malicious inputs, even if unsuccessful

The guiding principle is that any slashable behavior should be accompanied by a bug fix. Hyperliquid's stated goal is that slashing should not be required in its final state.

#### Impact on Traders

Traders maintain custody of their collateral in Hyperliquid's smart contracts, not with Stratium. In the event of a slashing incident, open positions would be settled at prevailing mark prices. HIP-3 inherits Hyperliquid's mathematical solvency guarantees.

#### Realistic Assessment

Per Hyperliquid's documentation: in the most likely outcome, slashing never happens on mainnet. Despite mitigation efforts, slashing remains a protocol-level risk that participants should understand.

For complete details, see [Hyperliquid HIP-3 documentation](https://hyperliquid.gitbook.io/hyperliquid-docs/hyperliquid-improvement-proposals-hips/hip-3-builder-deployed-perpetuals).

### Smart Contract Security

The **Stratium Staking Vault Contract** and **srHYPE (Stratium Liquid Staking Token)** have been audited by [Halborn](https://www.halborn.com/), one of the leading and most trusted smart contract security firms in the blockchain industry.

This independent review ensures the protocol meets high standards of security, reliability, and smart contract best practices before public deployment.

### Full Audit Report

You can review the complete audit report below

{% file src="/files/VKsj1psTaAPkZus56tpJ" %}


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