Slashing Risk
Slashing is HIP-3's enforcement mechanism. Stratium's 500,000 HYPE stake serves as collateral that can be partially or fully slashed for protocol violations.
How It Works
Validators decide slashing through stake-weighted voting. If they determine a deployer's actions harmed protocol correctness, uptime, or solvency, they can vote to slash.
Scope — Partial to full confiscation, determined by median of validator votes
Burned — Slashed HYPE is burned, not redistributed
Timing — Stake remains slashable during the entire 7-day unstaking queue
What Can Cause Slashing
Slashing focuses on technical impact, not intent. Malicious behavior and incompetent mistakes are treated equally if they harm the protocol.
Slashable behaviors include:
Irregular inputs harming protocol uptime
Irregular inputs threatening solvency
Irregular inputs affecting protocol correctness
Oracle manipulation or failure
Market parameter mismanagement
Even attempted malicious inputs that don't cause issues are slashable.
Impact on Traders
If Stratium's stake is slashed:
Your collateral stays in Hyperliquid's contracts, not with Stratium
Open positions settle at prevailing mark price
Markets may pause or delist depending on severity
Collateral remains accessible through Hyperliquid
Traders maintain custody. HIP-3 inherits Hyperliquid's solvency guarantees.
Realistic Assessment
From Hyperliquid's documentation: "In the most likely outcome, slashing never happens on mainnet. A large amount of technical work has gone into making HIP-3 a self-contained and technically robust system."
Slashing remains a protocol-level risk. Once slashed, HYPE is burned and cannot be recovered.
Resources
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