A dwarf who has been cast out of his clan as punishment for a crime is said to have been declared vargrimst (the word "vargrimstn" literally means "no halls"). A dwarf may only be named vargrimstn if all clan leaders agree to do so, depending on the severity of his crimes. A vargrimstn will be completely ignored by other dwarves, except for when attacking somebody, where guards will ward him off impassively and then pay him no further heed. Eragon believed this fate to be "worse than death" and had some sympathy for Vermûnd when he was named vargrimstn, which dissipated as he recalled how Kvîstor had died as a result of Vermûnd's orders.

The punishment may or may not be lasting. After the attempt on Eragon's life, all of Dûrgrimst Az Sweldn rak Anhûin was named vargrimstn but only until they had replaced their leader. Vermûnd, however, was to be vargrimstn until the day he died. It was widely considered to be the most severe dwarven punishment.