diff --git a/lib/autonolas-registries b/lib/autonolas-registries
index f68ab3c..2ce07e8 160000
--- a/lib/autonolas-registries
+++ b/lib/autonolas-registries
@@ -1 +1 @@
-Subproject commit f68ab3c2025721dda66aca778bda4ca44ca69193
+Subproject commit 2ce07e89e070230675727cf9c91d223d5f8e8ada
diff --git a/lib/forge-std b/lib/forge-std
index 267acd3..2f11269 160000
--- a/lib/forge-std
+++ b/lib/forge-std
@@ -1 +1 @@
-Subproject commit 267acd30a625086b3f16e1a28cfe0c5097fa46b8
+Subproject commit 2f112697506eab12d433a65fdc31a639548fe365
diff --git a/test/ServiceStakingMechUsage.js b/test/ServiceStakingMechUsage.js
index f87a569..b4b5182 100644
--- a/test/ServiceStakingMechUsage.js
+++ b/test/ServiceStakingMechUsage.js
@@ -38,6 +38,7 @@ describe("ServiceStakingMechUsage", function () {
         maxNumServices: 10,
         rewardsPerSecond: "1" + "0".repeat(15),
         minStakingDeposit: 10,
+        maxNumInactivityPeriods: 3,
         livenessPeriod: livenessPeriod, // Ten seconds
         livenessRatio: "1" + "0".repeat(16), // 0.01 transaction per second (TPS)
         numAgentInstances: 1,
@@ -45,6 +46,7 @@ describe("ServiceStakingMechUsage", function () {
         threshold: 0,
         configHash: bytes32Zero
     };
+    const maxInactivity = serviceParams.maxNumInactivityPeriods * livenessPeriod + 1;
 
     beforeEach(async function () {
         signers = await ethers.getSigners();
@@ -173,15 +175,15 @@ describe("ServiceStakingMechUsage", function () {
             await serviceStakingMechUsage.stake(serviceId);
 
             // Check that the service is staked
-            const isStaked = await serviceStakingMechUsage.isServiceStaked(serviceId);
-            expect(isStaked).to.equal(true);
+            const stakingState = await serviceStakingMechUsage.getServiceStakingState(serviceId);
+            expect(stakingState).to.equal(1);
 
             // Get the service multisig contract
             const service = await serviceRegistry.getService(serviceId);
             const multisig = await ethers.getContractAt("GnosisSafe", service.multisig);
 
             // Increase the time while the service does not reach the required amount of transactions per second (TPS)
-            await helpers.time.increase(livenessPeriod);
+            await helpers.time.increase(maxInactivity);
 
             // Calculate service staking reward that must be zero
             const reward = await serviceStakingMechUsage.calculateServiceStakingReward(serviceId);
@@ -217,8 +219,8 @@ describe("ServiceStakingMechUsage", function () {
             await serviceStakingMechUsage.stake(serviceId);
 
             // Check that the service is staked
-            const isStaked = await serviceStakingMechUsage.isServiceStaked(serviceId);
-            expect(isStaked).to.equal(true);
+            const stakingState = await serviceStakingMechUsage.getServiceStakingState(serviceId);
+            expect(stakingState).to.equal(1);
 
             // Get the service multisig contract
             const service = await serviceRegistry.getService(serviceId);
@@ -228,7 +230,7 @@ describe("ServiceStakingMechUsage", function () {
             await agentMech.increaseRequestsCount(service.multisig);
 
             // Increase the time while the service does not reach the required amount of transactions per second (TPS)
-            await helpers.time.increase(livenessPeriod);
+            await helpers.time.increase(maxInactivity);
 
             // Calculate service staking reward that must be zero
             const reward = await serviceStakingMechUsage.calculateServiceStakingReward(serviceId);
@@ -280,7 +282,7 @@ describe("ServiceStakingMechUsage", function () {
             await safeContracts.executeTx(multisig, txHashData, [signMessageData], 0);
 
             // Increase the time for the liveness period
-            await helpers.time.increase(livenessPeriod);
+            await helpers.time.increase(maxInactivity);
 
             // Call the checkpoint at this time
             await serviceStakingMechUsage.checkpoint();
@@ -292,7 +294,7 @@ describe("ServiceStakingMechUsage", function () {
             await safeContracts.executeTx(multisig, txHashData, [signMessageData], 0);
 
             // Increase the time for the liveness period
-            await helpers.time.increase(livenessPeriod);
+            await helpers.time.increase(maxInactivity);
 
             // Calculate service staking reward that must be greater than zero
             const reward = await serviceStakingMechUsage.calculateServiceStakingReward(serviceId);
@@ -373,7 +375,7 @@ describe("ServiceStakingMechUsage", function () {
             await safeContracts.executeTx(multisig, txHashData, [signMessageData], 0);
 
             // Increase the time for the liveness period
-            await helpers.time.increase(livenessPeriod);
+            await helpers.time.increase(maxInactivity);
 
             // Calculate service staking reward that must be greater than zero
             const reward = await serviceStakingTokenMechUsage.calculateServiceStakingReward(sId);
diff --git a/test/ServiceStakingMechUsages.t.sol b/test/ServiceStakingMechUsages.t.sol
index 3b7df2a..404790a 100644
--- a/test/ServiceStakingMechUsages.t.sol
+++ b/test/ServiceStakingMechUsages.t.sol
@@ -59,6 +59,8 @@ contract BaseSetup is Test {
     uint256 internal rewardsPerSecond = 0.0001 ether;
     // Minimum service staking deposit value required for staking
     uint256 internal minStakingDeposit = regDeposit;
+    // Max number of accumulated inactivity periods after which the service is evicted
+    uint256 internal maxNumInactivityPeriods = 3;
     // Liveness period
     uint256 internal livenessPeriod = 1 days;
     // Liveness ratio in the format of 1e18
@@ -107,7 +109,8 @@ contract BaseSetup is Test {
 
         // Deploy service staking native token and arbitrary ERC20 token
         ServiceStakingBase.StakingParams memory stakingParams = ServiceStakingBase.StakingParams(maxNumServices,
-            rewardsPerSecond, minStakingDeposit, livenessPeriod, livenessRatio, numAgentInstances, emptyArray, 0, bytes32(0));
+            rewardsPerSecond, minStakingDeposit, maxNumInactivityPeriods, livenessPeriod, livenessRatio,
+            numAgentInstances, emptyArray, 0, bytes32(0));
         agentMech = new MockAgentMech();
         serviceStakingMechUsage = new ServiceStakingMechUsage(stakingParams, address(serviceRegistry),
             multisigProxyHash, address(agentMech));
@@ -236,7 +239,7 @@ contract ServiceStakingMechUsages is BaseSetup {
             }
 
             // Move one day ahead
-            vm.warp(block.timestamp + 1 days);
+            vm.warp(block.timestamp + serviceStakingMechUsage.maxAllowedInactivity() + 1);
 
             // Call the checkpoint
             serviceStakingMechUsage.checkpoint();
@@ -246,7 +249,7 @@ contract ServiceStakingMechUsages is BaseSetup {
                 for (uint256 j = 0; j < numServices; ++j) {
                     uint256 serviceId = j + 1;
                     // Unstake if the service is not yet unstaked, otherwise ignore
-                    if (!serviceStakingMechUsage.isServiceStaked(serviceId)) {
+                    if (uint8(serviceStakingMechUsage.getServiceStakingState(serviceId)) > 0) {
                         vm.startPrank(deployer);
                         serviceStakingMechUsage.unstake(serviceId);
                         vm.stopPrank();
@@ -307,7 +310,7 @@ contract ServiceStakingMechUsages is BaseSetup {
             }
 
             // Move one day ahead
-            vm.warp(block.timestamp + 1 days);
+            vm.warp(block.timestamp + serviceStakingMechUsage.maxAllowedInactivity() + 1);
 
             // Call the checkpoint
             serviceStakingMechUsage.checkpoint();
@@ -317,7 +320,7 @@ contract ServiceStakingMechUsages is BaseSetup {
                 for (uint256 j = 0; j < numServices; ++j) {
                     uint256 serviceId = j + 1;
                     // Unstake if the service is not yet unstaked, otherwise ignore
-                    if (!serviceStakingMechUsage.isServiceStaked(serviceId)) {
+                    if (uint8(serviceStakingMechUsage.getServiceStakingState(serviceId)) > 0) {
                         vm.startPrank(deployer);
                         serviceStakingMechUsage.unstake(serviceId);
                         vm.stopPrank();
@@ -387,7 +390,7 @@ contract ServiceStakingMechUsages is BaseSetup {
             }
 
             // Move one day ahead
-            vm.warp(block.timestamp + 1 days);
+            vm.warp(block.timestamp + serviceStakingMechUsage.maxAllowedInactivity() + 1);
 
             // Call the checkpoint
             serviceStakingMechUsage.checkpoint();
@@ -397,7 +400,7 @@ contract ServiceStakingMechUsages is BaseSetup {
                 for (uint256 j = 0; j < numServices; ++j) {
                     uint256 serviceId = j + 1;
                     // Unstake if the service is not yet unstaked, otherwise ignore
-                    if (!serviceStakingMechUsage.isServiceStaked(serviceId)) {
+                    if (uint8(serviceStakingMechUsage.getServiceStakingState(serviceId)) > 0) {
                         vm.startPrank(deployer);
                         serviceStakingMechUsage.unstake(serviceId);
                         vm.stopPrank();
@@ -467,7 +470,7 @@ contract ServiceStakingMechUsages is BaseSetup {
             }
 
             // Move one day ahead
-            vm.warp(block.timestamp + 1 days);
+            vm.warp(block.timestamp + serviceStakingMechUsage.maxAllowedInactivity() + 1);
 
             // Call the checkpoint
             serviceStakingTokenMechUsage.checkpoint();
@@ -477,7 +480,7 @@ contract ServiceStakingMechUsages is BaseSetup {
                 for (uint256 j = 0; j < numServices; ++j) {
                     uint256 serviceId = j + numServices + 1;
                     // Unstake if the service is not yet unstaked, otherwise ignore
-                    if (!serviceStakingTokenMechUsage.isServiceStaked(serviceId)) {
+                    if (uint8(serviceStakingTokenMechUsage.getServiceStakingState(serviceId)) > 0) {
                         vm.startPrank(deployer);
                         serviceStakingTokenMechUsage.unstake(serviceId);
                         vm.stopPrank();