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Can insurers cap liability per epoch to manage risk? Yes, capping liability per epoch is a sophisticated and highly effective risk management tool for insurers. An epochal aggregate cap sets a maximum total amount the insurance fund will pay out for all slashing claims within a single epoch (a fixed time period, e.g., a day or a week). If total claims in an epoch exceed this cap, payouts are pro-rated among all claimants. This directly addresses the risk of a "slashing storm"—a correlated event where a bug or attack causes many operators to be slashed simultaneously within a short timeframe. By limiting their exposure per epoch, insurers ensure that a single catastrophic event cannot completely drain the treasury, thus protecting the long-term solvency of the fund and the interests of all policyholders.

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