> For the complete documentation index, see [llms.txt](https://docs.icn.global/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.icn.global/icn-economics/hardware-providers-hps/collateral/slashing.md).

# Slashing

Slashing is a penalty mechanism within the Impossible Cloud Network (ICN), designed to ensure that Hardware Providers (HPs) consistently meet network standards. If an HP violates their obligations, a portion of their locked collateral is slashed, protecting network reliability and incentivising consistent performance.

### How Slashing Works

Slashing penalties are triggered by Service Downtime, detected by Hypernodes.

### Slashing Timeline

Slashing operates on an era-based system. Collateral remains exposed to slashing from the moment of staking (Era E-2) until slashing has been evaluated and executed (end of Era E+1).

### Slashed Collateral Usage

Slashed collateral is transferred to the Protocol Treasury.

For additional details, refer to the Collateral and Delegation pages.