A slashing penalty will be immediately applied to the balance in the validator. The validator will be automatically exited after 36 days. During that period, if the protocol determines that the validator was colluding with others then further penalties will be applied.
Once exited, the validator account will no longer participate in protocol duties and the account ETH balance will be fixed. Once withdrawals are enabled, the ETH balance can be transferred either to a new active validator or to the withdrawal key holder’s wallet. Should a slashing event occur, Codefi Staking will provide a full incident report.
It is worth noting that our track record since December 1, 2020 shows zero slashing and an up-time of over 99.95%.