Charm

Program Overview

Charm is a breakthrough Automatic Market Maker (AMM) that can create liquid options on the blockchain. By applying a prediction market scoring rule to the options world, we have invented a new model for options creation, pricing, trading, and settlement. This model powers a new type of AMM that can offer cheap options and higher profits for traders and lower risk for liquidity providers (LPs).

The bug bounty program is focused around its smart contracts used in its products and is mostly concerned with the loss of user funds.

Verification

Verification of Charm’s bug bounty program on Immunefi is available at https://twitter.com/CharmFinance/status/1357769860911095809

Rewards by Threat Level

Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System. This is a simplified 5-level scale, with separate scales for websites/apps and smart contracts/blockchains, encompassing everything from consequence of exploitation to privilege required to likelihood of a successful exploit.

Level
Critical	$20,000
High	$7,500
Medium	$3,000
Low	$750

Payouts are handled by the Charm team directly and are denominated in USD. However, payouts are done in ETH or USDC.

Assets in Scope

Target	Type
https://github.com/charmfinance/charm-options	Smart contract

Prioritized Vulnerabilities

We are especially interested in receiving and rewarding vulnerabilities of the following types:

Smart Contracts/Blockchain:

• Re-entrancy
• Logic errors
  • Including user authentication errors
• Solidity/EVM details not considered
  • Including integer over-/under-flow
  • Including unhandled exceptions
• Trusting trust/dependency vulnerabilities
  • Including composability vulnerabilities
• Oracle failure/manipulation
• Novel governance attacks
• Economic/financial attacks
  • Including flash loan attacks
• Congestion and scalability
  • Including running out of gas
  • Including block stuffing
  • Including susceptibility to frontrunning
• Consensus failures
• Cryptography problems
  • Signature malleability
  • Susceptibility to replay attacks
  • Weak randomness
  • Weak encryption
• Susceptibility to block timestamp manipulation
• Missing access controls / unprotected internal or debugging interfaces

Out of Scope & Rules

The following vulnerabilities are excluded from the rewards for this bug bounty program:

• Attacks that the reporter has already exploited themselves, leading to damage
• Attacks requiring access to leaked keys/credentials
• Attacks requiring access to privileged addresses (governance, strategist)
• Incorrect data supplied by third party oracles
  • Not to exclude oracle manipulation/flash loan attacks
• Basic economic governance attacks (e.g. 51% attack)
• Lack of liquidity
• Best practice critiques
• Sybil attacks

The following activities are prohibited by bug bounty program:

• Any testing with mainnet or public testnet contracts; all testing should be done on private testnets
• Any testing with pricing oracles or third party smart contracts
• Attempting phishing or other social engineering attacks against our employees and/or customers
• Any testing with third party systems and applications (e.g. browser extensions) as well as websites (e.g. SSO providers, advertising networks)
• Any denial of service attacks
• Automated testing of services that generates significant amounts of traffic
• Public disclosure of an unpatched vulnerability in an embargoed bounty