> For the complete documentation index, see [llms.txt](https://novacont.gitbook.io/nova-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://novacont.gitbook.io/nova-docs/decentralized-jury-system/rewards-and-penalties.md).
# Rewards & Penalties
NovaJury's integrity depends on jurors who participate actively and vote honestly. To ensure this, the system uses a carefully designed incentive structure. One that rewards correct participation and penalizes negligence or dishonest behavior. This page explains exactly how that structure works.
### How Jurors Earn Rewards
When a dispute is opened, both parties contribute to a **fee pool**. This pool is the source of juror rewards. Once a case is resolved, a portion of the collected fees is distributed among the jurors who actively participated. That is, those who cast a vote within the voting window.
**The distribution breakdown:**
* **70% of the total fee pool** is distributed equally among the jurors who voted
* **30% of the total fee pool** is retained by the protocol to cover operational costs
This means that as a juror, your reward for each case is determined by the size of the dispute fee pool. Which itself scales with the value of the underlying contract. Higher-value disputes generate larger fee pools and therefore larger juror rewards.
> Rewards are credited to your pending withdrawal balance on the NovaJury contract immediately after verdict execution. You can withdraw them at any time from the jury dashboard.
### The Importance of Active Participation
Rewards are only distributed to jurors who voted. If you are assigned to a case and fail to cast your vote before the deadline (whether due to inactivity, negligence, or any other reason) you receive no reward for that case. There are no partial rewards and no exceptions.
Beyond missing the reward, failing to vote also triggers the penalty system.
### Warning System
Every juror starts with a clean record. Warnings are issued when a juror fails to meet their obligations on an assigned case.
**A warning is issued when:**
* A juror fails to vote within the 24-hour replacement window and is replaced by another participant
* A juror is removed from a case due to inactivity
Warnings
Consequence
1 Warnings
Recorded on profile. No immediate action.
2 Warnings
Recorded on profile. Stake monitored closely.
3 Warnings
Permanent ejection from the juror pool.
Warnings are permanent and cannot be cleared or appealed. They are recorded on-chain and visible to anyone reviewing your juror profile.
### Stake Slashing
When a juror is replaced due to inactivity, a **5% slash** is applied to their current stake balance in addition to the warning. This amount is deducted from your staked USDT immediately and non-refundably.
{% hint style="info" %}
**Example:** A juror with a 500 USDT stake fails to vote and is replaced. 5% of 500 USDT (that is, 25 USDT) is slashed from their stake. Their remaining stake is now 475 USDT.
{% endhint %}
Slashing compounds with each offense. If your stake falls below the **500 USDT minimum** as a result of accumulated slashes, you are automatically ejected from the juror pool. Your remaining stake is returned to you, but your juror status is permanently revoked.
> There is no grace period and no warning before an automatic ejection triggered by falling below the minimum stake. Monitor your balance regularly and top it up if it approaches the threshold.
### Ejection
Ejection is the permanent removal of a juror from the NovaJury pool. It can occur in two ways:
**Warning-based ejection** Accumulating 3 warnings results in immediate and permanent ejection regardless of your current stake balance.
**Stake-based ejection** If your stake falls below the 500 USDT minimum at any point (due to slashing or any other reason) you are automatically ejected.
**What happens upon ejection:**
* You are immediately removed from the active juror pool
* You will not be assigned to any new cases
* Your remaining stake, after all penalties have been deducted, is returned to your wallet
* Your ejection is recorded permanently on-chain
* Re-registration as a juror is not possible from an ejected address
> Ejection is irreversible. The wallet address associated with an ejected juror cannot be used to register again. If you intend to participate long term, treat your warnings and stake balance as seriously as you would any financial commitment.
### Honest Voting and Long-Term Participation
The penalty system is designed to target negligence and inactivity. Not voting outcomes. Jurors are never penalized simply for voting differently from the majority. There is no mechanism that tracks whether your vote matched the final verdict and punishes you for disagreeing.
What the system does penalize is failure to participate at all. A juror who consistently shows up, reviews the evidence carefully, and votes according to their honest assessment will never face a warning or a slash. Regardless of whether their votes align with the majority.
Long-term, consistent participation is the most rational strategy. Jurors who remain active across many cases accumulate rewards steadily while maintaining their full stake. Those who treat the role casually (accepting the registration but ignoring assigned cases) will find themselves ejected and at a net financial loss.
### Summary
| Action | Reward | Penalty |
| --------------------------------------------- | ---------------------------------- | ------------------------- |
| Voting on an assigned case | 70% of fee pool split among voters | None |
| Failling to vote within 24 hours | No reward for that case | 5% stake slash +1 warning |
| Accumulating 3 warnings | — | Permanent ejection |
| Stake falling below 500 USDT | — | Automatic ejection |
| Voting honestly but differently from majority | No penalty | None |