# How Reputation Works

Nexus Nodes build reputation by correctly verifying external deposits and processing withdrawals back to original chains.

**Reputation Calculation Logic**\
Current Reputation equals Initial Score plus Total Valid Signatures plus Random Luck Factor minus Time Decay Penalty.

* **Valid Signatures:** Reputation points gained for every valid cross-chain attestation signaling that a user deposited funds on an external chain.
* **Time Decay:** Reputation rots over time. If a node stops verifying external chains or goes offline, its score drops automatically.
* **Slashing:** If a Nexus Node signs a fake deposit, pretending funds arrived on Ethereum when they did not, their staked SPECTRA and delegated assets are slashed.


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