this is the Penalty System in another league I'm (and some of you) are in (ADHL):
Penalty System for going over/under the cap:
For going over the cap:
If after roster lock in a given matchup a team is over the cap, their team is effectively disqualified and they lose all matchups that week. That's a first infraction.
For each additional week of non-cap-compliance during the same season, on top of being disqualified for that week, the team is docked $1mil in cap space for the remainder of the season.
If any single GM allows his team to be non-cap-compliant for five or more weeks in a season, the GM is removed from the league.
For going under the cap floor:
If after roster lock in a given matchup a team is under the cap, the GM is given a warning.
Their team is NOT disqualified for that week.
For each additional week of non-cap-compliance during the same season, the team will be assigned a one-spot-drop draft penalty, where all draft picks owned by that GM at the draft drop one spot post-lottery.
If any single GM allows his team to be non-cap-compliant for five or more weeks in a season, the GM is removed from the league.