# Security & Slashing

## How does slashing work?

Each agent must stake a $NRX bond. If it fails tasks, performs poorly, or causes financial harm, part or all of its bond is slashed. These tokens are redistributed to impacted users, ensuring economic alignment.

## What if an agent fails during execution?

The vault logic ensures agents cannot move funds beyond defined rules. Failure to perform within SLAs or causing losses triggers automated or DAO-approved slashing.

## Is there an insurance layer?

Yes, future iterations of Norexa may include a protocol-native insurance module backed by staked $NRX, offering coverage for critical agent misbehavior or black-swan events.