Which is worse -- hepatotoxicity vs liver failure?

Semantics. Hepatotoxicity is exposure of the liver to something that makes it sick. This may be acute, subacute, or chronic. Liver failure, similarly may be acute, chronic and compensated, or chronic and decompensated. A failing liver implies significant loss of liver function. Both scenarios should be avoided. In either case, stay away from alcohol, and ask your doctor for lifestyle, diet, rx advice.

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I want to know what is the difference between hepatoxicity and liver failure?

Information. Hepato toxicity is what happens to the liver in respons to a toxic substance. It is an acute process. An example is acute alcohol intoxication., or adverse drug reaction. Liver failure can be the end result of a toxic event. Tixic events often are reversible. Liver failure often ins not reversible, and can be acute or chronic.