In the Github link in the Assets in Scope table, only Exact Match Verified smart contracts are considered as in-scope of the bug bounty program.

Folks Finance is a community-driven DeFi protocol offering a variety of tools for digital asset management

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

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

Permanent freezing of funds

Protocol insolvency

Theft of unclaimed yield

Permanent freezing of unclaimed yield

Temporary freezing of funds for at least 48 hours

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

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)

Temporary freezing of funds for at least 24 hours

Rewards are distributed according to the impact of the vulnerability based on the [Immunefi Vulnerability Severity Classification System V2.2](https://immunefi.com/immunefi-vulnerability-severity-classification-system-v2-2). This is a simplified 5-level scale, with separate scales for websites/apps, smart contracts, and blockchains/DLTs, focusing on the impact of the vulnerability reported. 

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

High and 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__ for Critical and __USD 10 000__ for High. 

All vulnerabilities marked in the following Github repository [https://github.com/Folks-Finance/audits](https://github.com/Folks-Finance/audits) are ineligible for a reward

Bug reports related solely to external incentives distributed on top of the protocol are downgraded in severity by one level. 

Bug reports covering previously-discovered bugs are not eligible for any reward through the bug bounty program. If a bug report covers a known issue, it may be rejected together with proof of the issue being known before escalation of the bug report via Immunefi. Previous known issues can be found at https://github.com/Folks-Finance/folks-finance-xchain-contracts/issues?q=is%3Aissue+is%3Aclosed. 

In addition, below are known issues that the project is aware of but has consciously decided not to “fix”:

- Griefing through consuming external rate limits of tokens e.g. Circle CCTP rate limits for USDC
- Griefing through consuming internal rate limits where we have the ability to respond by temporarily boosting capacity
- Dust positions not being liquidated because of gas fees
- Manipulation of stable borrow rate to get cheaper borrow
- Liquidation leading to bad debt when we are prioritising the certainty of a lesser amount of bad debt against the risk of incurring a larger amount of bad debt

__KYC__ shall be completed for bug bounty hunters submitting a vulnerability report and requesting a reward for Critical and High Smart Contracts vulnerabilities. The basic information needed is full name, residential address, and passport details (DOB, issuing country and passport number). Based on the basic information submitted, Folks Finance team may request further information at its sole discretion for compliance with applicable
Laws.

Additionally, all levels of bug bounty hunters submitting a vulnerability report and requesting a reward need to submit certification that 
- (i) they are not acting, directly or indirectly, for or on behalf of any person, group entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule or regulation that is
enforced or administered by the Office of Foreign Assets Control; and  
- (ii) they are not engaging in, instigating or facilitating this transaction, directly or indirectly, on behalf of any such person, group,
entity, or nation. They also need to submit an attestation that all information provided is true, correct, up-to-date and not misleading. The collection of this information will be done by the Folks Finance team.

Payouts are handled by the __Folks Finance__ team directly and are denominated in USD. However, payouts are done in __USDCa__.