# Penalty

Calculates penalties for SLA breaches in **Statistics, Events, and Incidents,** with options to configure applicability (percentage, fixed amount, or cost points), metrics, configuration type (value or time-bound), and penalty type (default, priority, or vendor).

Users can also define service cost, maximum cost, allow partial penalties, handle multiple downtimes, and override costs from asset properties.

## **Add Penalty**

* Go to the **Penalty Configuration** page and click **Add** (top-right corner).
* Enter a **Name** and **Description** for the penalty configuration.

![](/files/Bm9QW8aZmFPoi3NBiPuC)

<table data-header-hidden><thead><tr><th width="131.79998779296875"></th><th width="173.7999267578125"></th><th></th></tr></thead><tbody><tr><td><strong>Label</strong></td><td><strong>Action</strong></td><td><strong>Description / Example</strong></td></tr><tr><td>Name*</td><td>Enter text input</td><td><p>Unique identifier for the penalty rule</p><p><strong>Example:</strong> Asset SLA Penalty Report</p></td></tr><tr><td>Description*</td><td>Enter text input</td><td><p>Brief explanation of the penalty configuration</p><p><strong>Example:</strong> Penalty applied when incident downtime exceeds defined SLA thresholds.</p></td></tr></tbody></table>

{% hint style="info" %}
The Penalty Configuration module lets you define SLA penalty rules for **Statistics, Events, and Incidents**. Fields are dynamic, and change based on the selected module (e.g., Incidents have additional fields compared to Events).
{% endhint %}

### **Module**

When creating a new penalty configuration, the first step is to **choose the module**. This choice determines the type of SLA penalties you are configuring. The system dynamically updates the configuration fields based on the selected module.

#### **Statistics**

Defines penalties based on service availability or performance statistics. Penalties trigger when thresholds (e.g., uptime %, latency) fall below agreed SLA levels.

#### **Events**

Applies penalties when specific system or network events occur (e.g., access point down, repeated SLA breaches). Event type selection drives the penalty conditions.

#### **Tickets**

Calculates penalties for SLA breaches in incidents. Penalties can be configured by defaul&#x74;*,* priorit&#x79;*, or* vendor, with options for maximum cost, accumulation, and cost overrides.

### **Configuration Fields**

![](/files/Z98yrDWp4GxctS6tDpdv)

<table data-header-hidden><thead><tr><th width="170.20001220703125"></th><th width="254.60009765625"></th><th></th></tr></thead><tbody><tr><td><strong>Field</strong></td><td><strong>Description</strong></td><td><strong>Use Case / Example</strong></td></tr><tr><td><strong>Penalty Applicability*</strong></td><td>Defines how the penalty amount will be applied.</td><td><strong>Options include:</strong> Fixed Amount, Percentage of Service Cost, or Points of Service Cost.</td></tr><tr><td><strong>Fixed Amount</strong></td><td>A flat penalty value applied for SLA breach.</td><td>If downtime exceeds SLA, apply a penalty of $200 per incident.</td></tr><tr><td><strong>Percentage of Service Cost</strong></td><td>Penalty is calculated as a percentage of the configured service cost.</td><td>For a service cost of $1000 and a penalty rate of 15%, the penalty = $150.</td></tr><tr><td><strong>Points of Service Cost</strong></td><td>Deducts cost points instead of currency. Useful where penalty tracking is non-monetary.</td><td><strong>Example:</strong> Deduct 5 service points for every breach.</td></tr><tr><td><strong>Statistics / Event Type*</strong></td><td>Defines the measurement domain for penalties (Availability, Performance, etc.).</td><td><strong>Example:</strong> For network SLA, select Availability. For server load SLA, select Performance.</td></tr><tr><td><strong>Availability</strong></td><td>Measures uptime against defined thresholds.</td><td><strong>Example:</strong> Penalize the vendor if uptime drops below 99.5%.</td></tr><tr><td><strong>Performance</strong></td><td>Measures efficiency metrics such as latency, throughput, or error rates.</td><td><strong>Example:</strong> If latency exceeds 200ms, a penalty is triggered.</td></tr><tr><td><strong>Statistics (Dropdown)</strong></td><td><p>Lists specific statistics for SLA calculation. Varies by module.</p><p><strong>Note:</strong> This field only applies when the Statistics and Events module is selected.</p></td><td><p><strong>Network Availability:</strong></p><p>Tracks % of network uptime. Example: If network availability falls below 98%, apply SLA penalty.</p><p><strong>Access Point Down:</strong></p><p>Penalty condition triggered when the access point is unavailable.<br>Example: Apply a penalty if the access point downtime > 2 hours.</p><p><strong>Breach Count:</strong></p><p>Penalty condition based on the number of SLA breaches.<br>Example: If breach count > 3 in a week, apply a penalty.</p></td></tr><tr><td><strong>Metric Type</strong>*</td><td><p>Select from the drop-down.</p><p><strong>Note:</strong> This field only applies when the Tickets module is selected.</p></td><td><p>Defines the SLA metric used to calculate the penalty.</p><p>Example: Resolution Metric.<br>Metrics are preconfigured in <strong>SLA → Metric</strong>, and represent measurable SLA targets (e.g., Resolution within 8 hours, Response within 30 minutes).</p></td></tr><tr><td><strong>Configuration*</strong></td><td>Defines how the penalty is calculated: Time Bound or Value.</td><td><p><strong>Example:</strong></p><p>Time Bound → calculate penalties per downtime hour; Value → penalties based on breach count.</p></td></tr><tr><td><strong>Time Bound</strong></td><td>Penalty calculated on elapsed downtime (minutes).</td><td><strong>Example:</strong> $100 penalty per hour of downtime.</td></tr><tr><td><strong>Value</strong></td><td>Penalty calculated on occurrence count.</td><td><strong>Example:</strong> 5% penalty if the response SLA is breached more than 5 times.</td></tr><tr><td><strong>Type (Tickets Only)</strong></td><td>Defines penalty logic for tickets: Default, Priority, or Vendor.</td><td>Example: Priority → higher penalties for high-priority incidents.</td></tr><tr><td><strong>Default (Type)</strong></td><td>Applies the penalty to all tickets equally.</td><td>Example: Flat penalty of $50 per breach.</td></tr><tr><td><strong>Priority (Type)</strong></td><td>Applies penalties based on ticket priority (e.g., Critical, High, Medium).</td><td>Example: $500 penalty for Critical, $200 for High.</td></tr><tr><td><strong>Vendor (Type)</strong></td><td>Penalties applied based on vendor accountability.</td><td>Example: If vendor SLA breached, apply agreed penalty. Select the appropriate vendor from the drop-down list.</td></tr><tr><td><strong>Maximum Cost</strong></td><td>Upper limit for penalty cost. Prevents unlimited charges.</td><td>Example: Cap penalties at $10,000 per month.</td></tr><tr><td><strong>Accumulate Each Cost</strong></td><td>If enabled, penalties accumulate across multiple breaches.</td><td>Example: If three breaches occur, apply a penalty for each breach instead of only once.</td></tr><tr><td><strong>Override Cost from Asset Property</strong></td><td>Pulls penalty cost directly from asset configuration instead of manually entering it.</td><td>Example: For a server asset with cost = $2000, penalty percentage will auto-calculate using this value.</td></tr><tr><td>Multiple Downtime</td><td>Allows penalties to be applied multiple times for repeated downtime events within the SLA window.</td><td>If downtime occurs 3 times in a day, penalties apply for each instance separately.</td></tr></tbody></table>

### **Target**

**Target Configuration | Basic Details**

<table data-header-hidden><thead><tr><th width="103.800048828125"></th><th></th><th></th></tr></thead><tbody><tr><td><strong>Field</strong></td><td><strong>Description</strong></td><td><strong>Example / Use Case</strong></td></tr><tr><td><strong>Operator</strong></td><td><p>Defines the condition for evaluating SLA data.</p><p><strong>Options include:</strong> Range (From – To), Less Than, Less Than or Equal, Greater Than, Greater Than or Equal, Equal To, Not Equal To<em>.</em></p></td><td>Set “Greater Than 60 mins” downtime → penalty applies if downtime exceeds 1 hour.</td></tr><tr><td><strong>Value</strong></td><td>Specifies threshold values for the selected operator.</td><td>From: 98, To: 99 → penalty applies within this downtime range.</td></tr></tbody></table>

#### **Penalty-Type–Specific Fields**

**1. Fixed Amount**

![](/files/847GXjUq1Pr4l0dLWNrs)

| **Field**             | **Description**                                               | **Example / Use Case**                     |
| --------------------- | ------------------------------------------------------------- | ------------------------------------------ |
| **Credit**            | Defines a fixed penalty amount for the breach.                | $500 penalty for downtime between 98-99.   |
| **Additional Credit** | Adds an extra fixed penalty when specific conditions are met. | An extra $200 penalty if downtime exceeds. |

\
**2. Percentage of Service Cost**

![](/files/VsIsnmmMANLmYlxTcA9a)

| **Field**                      | **Description**                                                                             | **Example / Use Case**                                                          |
| ------------------------------ | ------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- |
| **For Each**                   | Applies penalty repeatedly for each interval difference (except when operator = Range).     | Penalty applies for every extra 30 minutes (Value/ Min) of downtime beyond SLA. |
| **Credit (% Cost)**            | Percentage-based penalty is applied to the service or asset cost.                           | 10% of $10,000 service cost = $1,000 penalty.                                   |
| **Additional Credit (% Cost)** | Extra percentage penalty applied under defined conditions (not applicable with “For Each”). | An additional 5% penalty if the breach continues beyond 6 hrs.                  |

\
**3. Points of Service Cost**

![](/files/rLENZg2RvsRYJ7ILlFz9)

| **Field**                          | **Description**                                                                        | **Example / Use Case**                          |
| ---------------------------------- | -------------------------------------------------------------------------------------- | ----------------------------------------------- |
| **For Each**                       | Applies penalty points repeatedly for each interval difference.                        | Deduct 10 points for every 1 hr of downtime.    |
| **Credit (Point Cost)**            | Penalty expressed in points, applied to the service/asset cost.                        | Deduct 50 points for SLA breach in P1 incident. |
| **Additional Credit (Point Cost)** | Extra penalty points added under specific conditions (not applicable with “For Each”). | Extra 20 points deducted if breach > 4 hrs.     |

#### **Calculation**

The system allows entering **Sample Data** to test how penalties are calculated based on the configured rules. The engine checks each condition in sequence, validates whether it is satisfied, and then applies the defined **Credit** (percentage, fixed, or points) to the **Service Cost**.

**Example:**

![](/files/HyPfj3PzN1lRSxRsx4va)

* **Service Cost**: 12,000
* **Sample Data Entered**: 96

#### **Condition Checks (Step-by-Step)**

When you enter a sample value (96 in this case), the system goes through each configured rule under **Target** and verifies if the value falls within the specified range:

1. **Rule 1**: Range **98 – 99**
   * Check: Is 96 between 98 and 99?
   * Result: ❌ No → Condition Not Satisfied
2. **Rule 2**: Range **97 – 98**
   * Check: Is 96 between 97 and 98?
   * Result: ❌ No → Condition Not Satisfied
3. **Rule 3**: Range **94 – 97**
   * Check: Is 96 between 94 and 97?
   * Result: ✅ Yes → Condition Satisfied → Apply Credit = 20%
4. **Rule 4**: **Less Than 94**
   * Check: Is 96 less than 94?
   * Result: ❌ No → Not Applicable

Since only **Rule 3** is satisfied:

* Formula: (Credit % \* Service Cost) / 100
* Substitution: (20 \* 12000) / 100
* **Penalty Amount**: 2400

**Result Summary**

* Effective Credit Percentage Applied: 20%
* Final Penalty Amount: **2400.0**


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