Slashing is to address issues like manipulating governance to direct liquidity for wrong reasons, sabotaging the governance, etc. Validators failing to carry out their responsibilities also results in slashing. All of the slashed assets automatically go to the Lemmatron treasury and are used to build the ecosystem. There are various measures a bad actor might take to sabotage the system. They are mentioned below along with the kind of slashing they face for it.
If we take a look at how liquidity prize is determined, it depends upon the total staked value in the network. Validators being offline is considered a risk to the network which is why they are expected to always be online. Being online simply means voting in the governance. The severity of slashing for offline validators depends upon the number of validators offline in any given governance and is calculated by the following:
Therefore, the maximum slashing for being offline is capped at 7%. An important note to remember here is that the slashing applies to the offline validator(s) only.
This is considered a serious act against the network and anyone doing so is penalized accordingly. The slashing for manipulating the governance is 50%-100% of the staked asset depending upon the nature of manipulation. The wallet is also added to the blocklist. Blocklist wallets will never be able to participate in any of the activities in the ecosystem. From taking advantage of code loopholes to disinforming the community, blackmailing, etc are all considered under manipulating governance.
Running overwritten software results in 100% slashing of the staked asset and getting added to the blocklist wallets.