NFTX

Triaged by Immunefi

Submit a Bug
22 February 2024
Live since
No
KYC required
$150,000
Maximum bounty
05 March 2024
Last updated

VaultImmunefi vault program

This project deposits assets in a decentralized vault to publicly show proof of assets for paying out bug bounty rewards on-chain via the Immunefi dashboard

VaultPublic vault address
0xEF1BBf1Bf0DeFe69138b8F023b4E2df1c6329DFe
VaultFunds available
$5,005
Vault30d Avg. Funds availability
$4,999.11
VaultAssets in vault
  • 5.0k  USDC

Program Overview

NFTX is a protocol for wrapping similar-value NFTs into fungible ERC20 "vTokens" and incentivizing liquid markets for those vTokens, which, in turn, creates liquid markets for the NFTs.

For more information about NFTX, please visit https://docs.nftx.io/protocol-overview.

NFTX provides rewards in USDC on Ethereum Mainnet, denominated in USD. For more details about the payment process, please view the Rewards by Threat Level section further below.

Responsible Publication

NFTX adheres to category 3 - Approval Required. This Policy determines what information researchers are allowed to make public from their submitted bug reports. For more information about the category selected, please refer to our Responsible Publication page.

Primacy of Impact vs Primacy of Rules

NFTX adheres to the Primacy of Impact for the following impacts:

  • Smart Contract - Critical
  • Smart Contract - High

Primacy of Impact means that the impact is prioritized rather than a specific asset. This encourages security researchers to report on all bugs with an in-scope impact, even if the affected assets are not in scope. For more information, please see Best Practices: Primacy of Impact

When submitting a report on Immunefi’s dashboard, the security researcher should select the Primacy of Impact asset placeholder. If the team behind this project has multiple programs, those other programs are not covered under Primacy of Impact for this program. Instead, check if those other projects have a bug bounty program on Immunefi.

If the project has any testnet and/or mock files, those will not be covered under Primacy of Impact.

All other impacts are considered under the Primacy of Rules, which means that they are bound by the terms and conditions set within this program.

Proof of Concept (PoC) Requirements

A PoC, demonstrating the bug's impact, is required for this program and has to comply with the Immunefi PoC Guidelines and Rules.

Known Issue Assurance

NFTX commits to providing Known Issue Assurance to bug submissions through their program. This means that NFTX will either disclose known issues publicly, or at the very least, privately via a self-reported bug submission.

In a potential scenario of a mediation, this allows for a more objective and streamlined process, in order to prove that an issue is known. Otherwise, assuming the bug report is valid, it would result in the report being considered as in-scope, and due a reward.

Public Disclosure of Known Issues

Bug reports covering previously-discovered bugs (listed below) are not eligible for a reward within this program. This includes known issues that the project is aware of but has consciously decided not to “fix”, necessary code changes, or any implemented operational mitigating procedures that can lessen potential risk.

  • NFTs may get “stuck” in a vault if the user balance is off by just 1 wei, which can happen when adding liquidity to our NFTX AMM or InventoryStaking. We have shut down ability in our vaults to allow the DAO to liquidate the underlying NFTs and distribute them to the remaining holders, when requested by them.
  • In NFTXVaultUpgradeableV3 during initialization, the NFTs are currently being delegated to the NFTXVaultFactory.

Previous Audits

NFTX’s completed audit reports can be found at https://docs.nftx.io/audit-reports. Any unfixed vulnerabilities mentioned in these reports are not eligible for a reward.

Feasibility Limitations

The project may be receiving reports that are valid (the bug and attack vector are real) and cite assets and impacts that are in scope, but there may be obstacles or barriers to executing the attack in the real world. In other words, there is a question about how feasible the attack really is. Conversely, there may also be mitigation measures that projects can take to prevent the impact of the bug, which are not feasible or would require unconventional action and hence, should not be used as reasons for downgrading a bug's severity.

Therefore, Immunefi has developed a set of feasibility limitation standards which by default states what security researchers, as well as projects, can or cannot cite when reviewing a bug report.

Immunefi Standard Badge

By adhering to Immunefi’s best practice recommendations, NFTX has satisfied the requirements for the Immunefi Standard Badge.

Rewards by Threat Level

Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System V2.3.

Reward Calculation for Critical Level Reports

For critical smart contract bugs, the reward amount is 10% of the funds directly affected up to a maximum of USD 150,000. The calculation of the amount of funds at risk is based on the time and date the bug report is submitted. However, a minimum reward of USD 50,000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.

Repeatable Attack Limitations

If the smart contract where the vulnerability exists can be upgraded or paused, only the initial attack will be considered for a reward. This is because the project can mitigate the risk of further exploitation by upgrading or pausing the component where the vulnerability exists. The reward amount will depend on the severity of the impact and the funds at risk.

Reward Calculation for High Level Reports

High vulnerabilities concerning theft/permanent freezing of unclaimed yield/royalties are rewarded within a range of USD 5000 to USD 40,000 depending on the funds at risk, capped at the maximum high reward.

In the event of temporary freezing, the reward doubles from the full frozen value for every additional 24h that the funds are temporarily frozen, up until a max cap of the high reward. This is because as the duration of the freezing lengthens, the potential for greater damage and subsequent reputational harm intensifies. Thus, by increasing the reward proportionally with the frozen duration, the project ensures stronger incentives for bug disclosure of this nature.

Reward Payment Terms

Payouts are handled by the NFTX team directly and are denominated in USD. However, payments are done in USDC on Ethereum Mainnet

The calculation of the net amount rewarded is based on the average price between CoinMarketCap.com and CoinGecko.com at the time the bug report was submitted. No adjustments are made based on liquidity availability.

Smart Contract

Critical
Level
USD $50,000 to USD $150,000
Payout
PoC Required
High
Level
USD $5,000 to USD $40,000
Payout
PoC Required

Assets in scope

Finding More Assets in Scope

NFTX vaults and UniswapV3 pools are permissionlessly deployed as BeaconProxies.

NFTX’s codebase can be found at https://github.com/NFTX-project/nftx-protocol-v3/. Documentation and further resources can be found on https://docs.nftx.io/.

The following functions can be called to obtain a list of smart contract addresses that are currently in Production and that are covered by the program:

  • NFTXVaultFactoryUpgradeableV3 allVaults()
    Lists all NFTX vaults. This function returns an array of vault addresses managed by the NFTX Vault Factory.

  • UniswapV3FactoryUpgradeable getPool() Queries the UniswapV3 pool for a specific token pair. It takes two token addresses and fee as inputs and returns the address of the pool

Impacts in scope

Only the following impacts are accepted within this bug bounty program. All other impacts are not considered as in-scope, even if they affect something in the assets in scope table.

Smart Contract

  • Direct theft of any user funds, whether at-rest or in-motion, other than unclaimed yield
    Critical
    Impact
  • Direct theft of any user NFTs, whether at-rest or in-motion, other than unclaimed royalties
    Critical
    Impact
  • Permanent freezing of funds
    Critical
    Impact
  • Permanent freezing of NFTs
    Critical
    Impact
  • Protocol insolvency
    Critical
    Impact
  • Theft of unclaimed yield
    High
    Impact
  • Permanent freezing of unclaimed yield
    High
    Impact

Out of Scope & Rules

These impacts are out of scope for this bug bounty program.

All Categories:

  • Impacts requiring attacks that the reporter has already exploited themselves, leading to damage
  • Impacts caused by attacks requiring access to leaked keys/credentials
  • Impacts caused by attacks requiring access to privileged addresses (governance, strategist) except in such cases where the contracts are intended to have no privileged access to functions that make the attack possible
  • Impacts relying on attacks involving the depegging of an external stablecoin where the attacker does not directly cause the depegging due to a bug in code
  • Mentions of secrets, access tokens, API keys, private keys, etc. in Github will be considered out of scope without proof that they are in-use in production
  • Best practice recommendations
  • Feature requests
  • Impacts on test files and configuration files unless stated otherwise in the bug bounty program

Smart Contract Specific:

  • Incorrect data supplied by third party oracles
    • Not to exclude oracle manipulation/flash loan attacks
  • Impacts requiring basic economic and governance attacks (e.g. 51% attack)
  • Lack of liquidity impacts
  • Impacts from Sybil attacks
  • Impacts involving centralization risks

Prohibited Activities:

  • Any testing on mainnet or public testnet deployed code; all testing should be done on local-forks of either public testnet or mainnet
  • 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 that are executed against project assets
  • Automated testing of services that generates significant amounts of traffic
  • Public disclosure of an unpatched vulnerability in an embargoed bounty