Drift Protocol is a decentralized, fully on-chain perpetual swap exchange built on Solana. Drift Protocol also is the first perpetual swap exchange to leverage a Dynamic AMM. A Dynamic AMM is based on a virtual AMM (vAMM), but its key innovative is that it introduces repegging and adjustable k mechanisms to recalibrate liquidity in a trading pool based on participant demand.

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

Theft of unclaimed yield

Permanent freezing of unclaimed yield

Temporary freezing of funds

Smart contract unable to operate due to lack of token funds

Block stuffing for profit

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

Theft of gas

Unbounded gas consumption

Any governance voting result manipulation

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

Permanent freezing of funds

Miner-extractable value (MEV)

Protocol insolvency

Oracle failure/manipulation

Rewards are distributed according to the impact of the vulnerability based on the [Immunefi Vulnerability Severity Classification System](https://immunefi.com/severity-updated/). 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.

All Critical Smart Contract bug reports require a PoC and a suggestion for a fix to be eligible for a reward. All High Smart Contract bug reports require a PoC to be eligible for a reward. Explanations and statements are not accepted as PoC and code is required. 

Critical smart contract vulnerabilities are capped at 10% of economic damage, primarily taking into consideration funds at risk, but also PR and branding aspects, at the discretion of the team. However, there is a minimum reward of __USD 50 000__.

Payouts are handled by the __Drift Protocol__ team directly and are denominated in USD. However, payouts are done in __USDC__.