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

Unhandled erasure of user data

Theft of rewards

Theft of yield

Flaws in implementation of calculations

Smart contract deviates from expected protocol behavior

Retrieval of supposed locked funds

Unrecoverable failure of smart contracts

Theft of pooled assets

Theft of fTokens

Manipulation of asset prices

**From December 9th through December 19th Folks Finance is hosting an [Audit Competition](https://immunefi.com/audit-competition/folks-finance-liquid-staking-audit-competition/information/) on their new Liquid Staking contract.**

**For the duration of the Audit Competition, all vulnarbilities submitted on https://lora.algokit.io/mainnet/application/1134695678 for this Bug Bounty Program will be closed as out-of-scope and will not be rewarded.**

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 25 000__ for Critical and __USD 5 000__ 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 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
- LiquidationLogic::getMaxRepayBorrowValue can panic if privileged address sets certain parameters

__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__.