BAO Finance is a decentralized platform on Ethereum focusing on the creation and use of synthetic assets and markets. Bao aims to shift the power of financial data from institutions to individuals, leveraging synthetics to represent any data globally.

Theft of unclaimed yield

Permanent freezing of unclaimed yield

Temporary freezing of funds

Smart contract unable to operate due to lack of token funds

Griefing (e.g. no profit motive for an attacker, but damage to the users or the protocol)

Manipulation of governance voting result deviating from voted outcome and resulting in a direct change from intended effect of original results

Direct theft of any user funds, whether at-rest or in-motion, other than unclaimed yield

Permanent freezing of funds

Protocol insolvency

Execute arbitrary system commands

Retrieve sensitive data/files from a running server, such as:  /etc/shadow database passwords blockchain keys (this does not include non-sensitive environment variables, open source code, or usernames)

Taking down the application/website

Taking state-modifying authenticated actions (with or without blockchain state interaction) on behalf of other users without any interaction by that user, such as:   Changing registration information Commenting Voting Making trades Withdrawals, etc.

Subdomain takeover with already-connected wallet interaction

Direct theft of user funds

Malicious interactions with an already-connected wallet, such as:  Modifying transaction arguments or parameters Substituting contract addresses Submitting malicious transactions

Bao Finance Codebase

Bao Finance Documentation

Rewards are distributed according to the impact of the vulnerability based on the [Immunefi Vulnerability Severity Classification System V2.3](https://immunefi.com/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 20,000__. 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 6,000__ 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 attacks within the first hour 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.

  - For critical repeatable attacks on smart contracts that cannot be upgraded or paused, the project will consider the cumulative impact of the repeatable attacks for a reward. This is because the project cannot prevent the attacker from repeatedly exploiting the vulnerability until all funds are drained and/or other irreversible damage is done. Therefore, this warrants a reward equivalent to 10% of funds at risk, capped at the maximum critical reward.

__Reward Calculation for High Level Reports__

  - High vulnerabilities concerning theft/permanent freezing of unclaimed yield/royalties are considered at the full amount of funds at risk, capped at the maximum high reward. This is to incentivize security researchers to uncover and responsibly disclose vulnerabilities that may not have significant monetary value today, but could still be damaging to the project if it goes unaddressed.   

  - In the event of temporary freezing, the reward increases at a multiplier of two 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 __Bao Finance__ team directly and are denominated in USD. However, payments are done in __DAI and USDC__.  The ratio will be either __100%__ in __DAI__ or __100%__ in __USDC__. 

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.