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A Service Level Agreement (SLA) is a written contract that specifies the minimum service expected from a service provider. It includes mechanisms to measure performance, often referred to as SLAs or Key Performance Indicators (KPIs). While SLAs define the minimum service levels, KPIs assess performance against specific targets. The SLA outlines actions to be taken if the agreed service levels are not met, which can include financial compensation to the client for losses due to underperformance. Performance under SLAs is monitored regularly to track compliance and implement corrective actions as needed.