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A Service Level Agreement (SLA) is a written contract that outlines the minimum service requirements from a service provider. Unlike Key Performance Indicators (KPIs), which measure performance against targets, SLAs specify the required service level and detail actions to be taken if these levels are not met. This often includes financial penalties aimed at reimbursing clients for losses resulting from underperformance. SLAs are regularly monitored to ensure that the service provider's performance is tracked and corrective measures are applied as needed.