Slashing & Delegator Protection Policy

Last Updated:

This Slashing & Delegator Protection Policy (“Policy”) explains AstroStake’s approach to slashing risks, operational safeguards, and our commitments to delegators. It applies to AstroStake.xyz and subdomains, including stake.astrostake.xyz, as well as validator operations we perform across supported networks.

1. Introduction

Staking on public blockchains involves protocol-level risks, including slashing. This Policy outlines how AstroStake minimizes such risks through engineering and operational practices, how incidents are handled, and what delegators can expect. Nothing in this Policy eliminates on-chain risk or guarantees specific outcomes.

2. What Is Slashing

“Slashing” is a protocol-defined penalty applied to validators (and, in many networks, proportionally to their delegators) for violations such as double-signing, extended downtime, or other consensus faults. Penalties, recovery processes, and disclosure requirements vary by network protocol and are outside AstroStake’s unilateral control.

3. Delegator Risk Acknowledgement

  • Delegators retain full control of their assets (non-custodial). Rewards and penalties are determined by the underlying protocol.
  • By delegating to AstroStake, you acknowledge the inherent risks of staking, including but not limited to slashing, reduced rewards, and network instability.
  • You are responsible for your own research (DYOR) and for understanding each network’s slashing rules, unbonding periods, and reward mechanics.

4. AstroStake Operational Commitments

We implement multi-layered safeguards to minimize the likelihood of slashable events:

  • High Availability Architecture: sentry-node topology, geo-redundant infrastructure, automated failover, and controlled validator exposure.
  • Key Management & Signing Safety: when possible, we deploy Horcrux (multi-party signing) and hardware security modules (HSM) for validator key protection. Where not feasible, equivalent isolation and security best practices are applied.
  • Monitoring & Alerting 24/7: real-time telemetry, alert thresholds, on-call rotations, and playbooks for rapid response to performance anomalies.
  • Change Management: staged upgrades, pre-flight tests, maintenance windows, and rollback plans for client/protocol updates.
  • Security Controls: firewalls, network segmentation, DDoS protection, log auditing, and periodic security reviews.
  • Governance & Protocol Awareness: active participation in governance, release notes review, and consensus changes to stay aligned with best practices.

5. Delegator Protection Measures

  • Transparency: if a slashable incident occurs, we will disclose a summary, impact assessment, and remediation steps via official channels (website and/or social).
  • Best-Effort Mitigation: architecture and procedures are designed to minimize double-signing and downtime; however, zero-risk cannot be guaranteed.
  • Optional Relief Programs (If Announced): from time to time, AstroStake may announce network-specific goodwill gestures or relief programs at our sole discretion. Such programs, if any, will be publicly documented with scope and eligibility criteria. They are voluntary and not an ongoing obligation.

6. Slash Protection Program

AstroStake operates a community-oriented Slash Protection Program to help protect retail delegators from the impact of protocol slashing events. Under this program:

  • Coverage Scope: Community delegations (retail / non-foundation) are eligible for coverage. Foundation delegations, institutional delegations, and strategic grants are explicitly excluded.
  • Funding Source: Coverage is supported by a validator-operated reserve, funded from a portion of validator commission.
  • Compensation: In the event of a slash, AstroStake will use this reserve to reimburse eligible delegators proportionally to their stake.
  • Limitations: Coverage is best-effort and limited to the balance of the reserve at the time of the incident. Full reimbursement cannot be guaranteed.
  • Transparency: The reserve address and program updates may be disclosed publicly for delegator confidence.

This program does not constitute an insurance contract. It is a voluntary commitment by AstroStake to prioritize community delegator protection to the best of our ability.

7. Incident Response

In the event of a slashable event or material performance issue affecting delegators, AstroStake will follow an internal incident response process:

  1. Detection: alerts trigger on-call response.
  2. Containment: pause risky operations, isolate nodes, rotate keys if required.
  3. Remediation: fix misconfigurations, apply patches, restore compliance.
  4. Postmortem & Disclosure: publish a summary and next steps.
  5. Follow-Up: corrective actions, runbook updates, and goodwill measures if applicable.

8. No Warranty; No Fiduciary Duty

Staking services are provided on an “as is” and “as available” basis. AstroStake is not a fiduciary or financial advisor and does not provide investment, financial, or legal advice.

The Slash Protection Program described in this Policy is a voluntary, best-effort commitment funded by validator commission reserves. While AstroStake will endeavor to protect community delegators from the impact of slashing, this does not constitute an insurance contract or a legally enforceable guarantee of loss prevention. Coverage is limited to the available reserve at the time of any incident.

9. Limits of Liability

To the maximum extent permitted by law, AstroStake shall not be liable for indirect, incidental, special, consequential, exemplary, or punitive damages, or for losses resulting from protocol rules, client software defects, third-party services, force majeure, or other circumstances beyond our reasonable control.

10. Delegator Responsibilities

  • Evaluate network-specific slashing parameters, reward rates, and unbonding periods.
  • Use secure wallets; protect seed phrases and private keys.
  • Monitor your positions and stay informed about protocol changes.
  • Understand tax, regulatory, and jurisdictional implications applicable to you.

11. Communication & Disclosures

Official communications regarding incidents, upgrades, or material changes will be posted on AstroStake.xyz and/or our official social channels. For individual inquiries, use the contact form on our website. Do not send private keys or sensitive credentials.

12. Relationship to Other Policies

This Policy complements (and does not override) our Terms of Use and Privacy Policy. In case of conflict, the Terms of Use govern your legal relationship with AstroStake.

13. Changes to This Policy

We may update this Policy from time to time. Material changes will be posted with an updated “Last Updated” date. Continued delegation or use of services after updates constitutes acceptance.

14. Governing Law & Dispute Resolution

This Policy is governed by the laws of Indonesia, without regard to its conflict-of-laws rules. Disputes shall be subject to the exclusive jurisdiction of the courts in Indonesia, unless otherwise required by applicable law.

15. Contact

Questions about this Policy can be submitted via our website’s contact form. We will respond within a reasonable timeframe as resources permit.