Impacts only apply to assets in active use by the project like contracts on mainnet or web/app assets used in production. Any impact that applies to assets not in active use, like test or mock files, are out-of-scope of the bug bounty program unless explicitly mentioned as in-scope. 

- All smart contracts of DeGate can be found at: [https://github.com/degatedev/protocols/tree/degate1.1.0/packages/loopring_v3/contracts](https://github.com/degatedev/protocols/tree/degate1.1.0/packages/loopring_v3/contracts)

__Dev Environment and Documentation:__

DeGate has included dev documentation and/or instructions to help in reviewing code and exploring for bugs:
- [https://docs.degate.com/v/product_en/overview](https://docs.degate.com/v/product_en/overview)
- [https://github.com/degatedev/protocols/blob/degate1.1.0/DeGate%20Protocol%20Specification%20Document.md](https://github.com/degatedev/protocols/blob/degate1.1.0/DeGate%20Protocol%20Specification%20Document.md)
- [https://github.com/degatedev/protocols/blob/degate1.1.0/Circuit%20Design.md](https://github.com/degatedev/protocols/blob/degate1.1.0/Circuit%20Design.md)
- [https://github.com/degatedev/protocols/blob/degate1.1.0/Smart%20Contract%20Design.md](https://github.com/degatedev/protocols/blob/degate1.1.0/Smart%20Contract%20Design.md)

__Impacts to other assets__ 

Hackers are encouraged to submit issues outside of the outlined Impacts and Assets in Scope. 

If whitehats can demonstrate a critical impact on code in production for an asset not in scope, DeGate encourages you to submit your bug report using the “primacy of impact exception” asset. 


[DeGate](https://degate.com/) is a decentralized orderbook exchange (DEX) built on the Ethereum blockchain that utilizes zero-knowledge technology. DeGate DEX offers spot market trading with limit orders and also offers a grid trading function.

Direct theft of funds exceeding 1,000,000 USD from the Default Deposit Contract

Permanent freezing of funds exceeding 2,500,000 USD in the Default Deposit Contract

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 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, making trades, internal transfer, withdrawals, etc.

Malicious interactions with an already-connected wallet such as: modifying transaction arguments or parameters, substituting contract addresses, submitting malicious transactions

Theft of funds from the Default Deposit Contract that requires malicious actions from the DeGate Operator

Permanent freezing of funds from the Default Deposit Contract that requires malicious actions from the DeGate Operator

Direct theft of user funds from the Default Deposit Contract that is less than 1,000,000 USD

Permanent freezing of funds in the Default Deposit Contract that is less than 2,500,000 USD

Force DeGate into Exodus Mode

Impact of this malicious contract verification through zk-proof

The amount of tokens in the L2 is inconsistent with that of the L1, except for Non-Standard tokens (Zero Knowledge Proof Circuit)

Climbing blocks fails to recovery the asset tree (Zero Knowledge Proof Circuit)

Temporary freezing of funds: Minimum freezing of 15 days (Zero Knowledge Proof Circuit)

Prevent new token from registering (Zero Knowledge Proof Circuit)

Steal trading fee or gas fee (Zero Knowledge Proof Circuit)

Prevent new users from registering (Zero Knowledge Proof Circuit)

The account cannot be used (Zero Knowledge Proof Circuit)

Theft of unclaimed yield

Permanent freezing of unclaimed yield

Injecting/modifying the static content on the target application without Javascript (Persistent) such as: HTML injection without Javascript Replacing existing text with arbitrary text Arbitrary file uploads, etc

Smart contract unable to operate due to lack of token funds: Minimum 24hrs

Block stuffing for profit

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

Unbounded gas consumption

Changing non-sensitive details of other users (including modifying browser local storage) without already-connected wallet interaction and with up to one click of user interaction, such as: theme config, langage config,  post only config, traded pairs

Injecting/modifying the static content on the target application without Javascript (Reflected) such as: reflected HTML injection, loading external site data

Redirecting users to malicious websites (Open Redirect)

Circuit fails to work correctly, but doesn’t lose value (Zero Knowledge Proof Circuit)

Contract fails to deliver promised returns, but doesn't lose value

Changing details of other users (including modifying browser local storage) without already-connected wallet interaction and with significant user interaction such as: iframing leading to modifying the backend/browser state (demonstrate impact with PoC)

Taking over broken or expired outgoing links such as: Social media handles, etc

Temporarily disabling user to access target site, such as: locking up the victim from login, cookie bombing, etc

If whitehats can demonstrate a critical impact on code in production for an asset not in scope, DeGate encourages you to submit your bug report using the “primacy of impact exception” asset. 


__Reward Distribution__

Please review how rewards are distributed based on the [Immunefi Vulnerability Severity Classification System V2.3](https://immunefi.com/immunefi-vulnerability-severity-classification-system-v2-3/). This is a simplified 4-level scale system with separate scales for Smart Contracts and Websites/Apps.

__Reward Calculation for Critical Level Reports__

For critical and high smart contract bugs, the reward amount is paid at a fixed rate of __$1.1M and $100,000__ respectively. This means than in order to qualify, the security researcher must demonstrate: 

__Reward of $1.1M:__

  - Direct theft of funds greater than $1M  
  - Direct permanent freezing of funds greater than $2.5M

__Reward of 100K:__

  - Direct theft of funds less than $1M
  - Direct permanent freezing of less than $2.5M
  - Theft of any funds that requires malicious actions of DeGate operator
  - Permanent freezing of any funds requires malicious actions of DeGate operator

__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 can not 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__

  - In the event of temporary freezing, the reward increases at a multiplier of two from the full frozen value for every additional 15 days that the funds are temporarily frozen, up until a max cap of the high reward. This is because as the duration of the freezing lenghents, 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. 

For critical web/apps, bug reports will be rewarded with __USD 100 000__, only if the impact leads to a direct loss of funds without any user action required.

All other impacts that would be classified as Critical would be rewarded within the range based on demonstrated ‘non-funds at risk’ impact, at the discretion of DeGate. The rest of the severity levels are paid out according to the Impact in Scope table. 

__Reward Payment Terms__

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.


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