Exits, Rewards & Slashing

This guide covers the end-of-lifecycle operations: collecting rewards, handling slashing proposals, and safely exiting the registry.

Rewards

Rewards are distributed through BondingRegistry.distributeRewards after successful E3 completions.

How Rewards Work

1. E3 completes successfully with plaintext output published
2. Reward distributor calls distributeRewards with the reward token
3. Committee members receive payouts based on participation
4. RewardsDistributed event is emitted

Monitoring Rewards

Watch for reward events and ensure your wallet can receive the reward token:

# Check your status including any pending rewards
enclave ciphernode status

Keep your operator wallet funded with ETH for gas - claiming rewards through automation scripts still requires transaction fees.

Slashing

Slashing penalizes operators who miss duties or behave maliciously. The SlashingManager contract handles proposals, appeals, and execution.

Slashing Lifecycle

Slash Policy Structure

Each slash reason has an associated policy:

struct SlashPolicy {
  uint256 ticketPenalty; // Tickets to burn
  uint256 licensePenalty; // ENCL to confiscate
  bool requiresProof; // Whether evidence is needed
  uint64 appealWindow; // Time to file appeal
  bool appealable; // Whether appeals are allowed
}

Responding to Slashing

1. Monitor for proposals: Watch SlashProposed events targeting your address
2. Review the policy: Check if appeals are allowed and the window duration
3. File appeal if applicable:

   # Using cast (or implement in automation)
   cast send $SLASHING "fileAppeal(uint256,string,string)" $E3_ID "reason" "evidence_uri" \
     --rpc-url $RPC --private-key $OPERATOR_KEY
4. Track resolution: Watch for finalization events

Slashing Penalties

Some policies skip the appeal process entirely. Always check the policy before assuming you can appeal.

Exit Process

To safely exit the ciphernode registry:

Step 1: Deregister

Request deregistration with your IMT proof siblings:

enclave ciphernode deregister --proof 0x123...,0x456...,0x789...

Save your sibling proof from the CiphernodeAdded event when you first register. You'll need it to deregister.

Step 2: Wait for Exit Delay

Assets enter a queue with a delay period (7 days on Sepolia):

Check your exit status:

enclave ciphernode status

Look for "Exit pending" and "Pending exits" fields.

Step 3: Claim Exits

After the delay period:

# Claim all pending exits
enclave ciphernode license claim
 
# Or specify maximum amounts
enclave ciphernode license claim --max-ticket 100 --max-license 50

Cancel Exit

To cancel an exit and return to active status:

enclave ciphernode register

This clears the exit queue and re-registers you in the registry.

CLI Commands Summary

Monitoring Checklist

Troubleshooting

Post-Exit Cleanup

After successfully claiming exits:

1. Wipe local secrets:

   enclave purge-all

2. Revoke access:

   • RPC credentials
   • Firewall rules
   • Any automation keys

3. Document for compliance:

   • Exit timestamp
   • Final balances
   • Reason for exit

Slashing Prevention

To minimize slashing risk:

1. Stay online during active E3s - Check for ongoing jobs before maintenance
2. Monitor events - Alert on SlashProposed targeting your address
3. Archive logs - You'll need evidence for appeals
4. Verify isActive after changes - Any stake modification could deactivate you

Summary