@k15873d64

What’s the expected cost (in ETH) of a false-positive slash? The expected cost of a false-positive slash is a function of the slashing penalty and the probability of it occurring. It is calculated as: Expected Cost = (Probability of FP Slash) * (Slashing Penalty in ETH). For an individual operator, if the annualized FP probability is estimated at 0.5% and the penalty for a specific AVS is 1 ETH, the expected annual cost is 0.005 ETH. However, this financial cost is only part of the picture. The full cost must include the opportunity cost of frozen funds during a dispute, the operational cost of mounting an appeal, and the reputational damage incurred. For the ecosystem, the "cost" includes the erosion of trust and potential centralization if small operators are driven out. The financial amount is therefore a baseline for a much larger implicit cost.

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