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A service level agreement (SLA) is a written contract that specifies the minimum level of service a provider must deliver. It includes criteria for measuring the provider's performance, often through key performance indicators (KPIs). Unlike KPIs, which assess performance against targets, an SLA outlines consequences for failing to meet the agreed standards, often involving financial compensation to the client for losses due to underperformance. SLAs are monitored regularly to track service levels and implement corrective actions as needed. For more on KPIs, viewers are encouraged to check out another video on the channel.