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Copy file name to clipboardExpand all lines: storage-providers/filecoin-economics/slashing.md
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This term encompasses a broad 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:
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***Fault fees** are incurred 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.
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***Fault fees** are incurred 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 fault fees are equal to 3.51 days of expected block rewards.
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***Sector penalties** are incurred 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.
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***Termination fees** are incurred when a sector is voluntarily or involuntarily terminated and is removed from the network.
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***Consensus fault slashing** is a penalty incurred when committing consensus faults. This penalty is applied to storage providers that have acted maliciously against the network’s consensus functionality.
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## Consensus fault slashing
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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.
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## Honest Storage Providers
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Note that occasionally, storage providers may experience operational issues, such as downtime or bugs, that cause them to miss their delivery of a WindowPoSt. To ensure reliability and to encourage smaller miners to join the network, there are built-in exceptions to the fault fees:
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* If the Storage Provider has a history of acting honestly, there is no penalty in the current proving period for a faulted sector in the case of a missed WindowPoSt.
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* There are no fees if the sector is successfully recovered in a later proving period.
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* The fault fee applies only to the sectors already faulty, meaning, they are from a previous proving period, or marked for recovery. Penalties are only applied to faulty sectors from previous proving periods, never the current proving period.
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