Ethereum Staking on Coinbase Question

I've tried to find the answer to this a couple different ways but haven't had any luck.

Q: If you stake ETH on Coinbase, can you lose your principal, or just the staking rewards? The language in their FAQ seems extremely unclear, and was wondering if someone with a bit better legal terminology knowledge could explain it?

Coinbase language:

An important risk to be aware of is the possibility of losing your staked assets (also known as your “principal funds'') due to slashing. Slashing is a penalty enforced at the protocol level associated with a network or validator failure.

Coinbase has taken measures to minimize the risk of slashing. However, slashing can be caused by events outside of our control that could lead to the loss of staked ETH. If a slashing event occurs, Coinbase will replace your slashed principal promptly at no extra cost. If you started staking after August 30, 2021, Coinbase will only cover slashing penalties to the extent they are a result of an action or omission within our reasonable control.