Kwenta is a decentralized derivatives trading platform offering perpetual futures and options trading on Optimism. Trader’s can cain exposure to a variety of on-chain and real-world assets, and access advanced functionality through the Kwenta Smart Margin Wallet. 

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 (does not include nonsensitive environment variables, open source code, or usernames), Taking down the application/website, Taking down the NFT URI

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.

Changing NFT metadata

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

Direct theft of user NFTs

Injection of malicious HTML or XSS through metadata

Theft of unclaimed yield

Permanent freezing of unclaimed yield

Temporary freezing of funds

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

Changing 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: Email, Password of the victim etc.

Improperly disclosing confidential user information, such as: Email address, Phone number, Physical address, etc.

Subdomain takeover without already-connected wallet interaction

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__

Rewards for critical smart contract bug reports will be capped at __10%__ of funds  directly affected up to a maximum of __USD 500 000__. 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 50 000__ is to be rewarded in order to incentivize security researchers against withholding a bug report.

For critical web/apps bug reports will be rewarded with __USD 5 000__, only if the impact leads to:

  - A loss of funds involving an attack that does not require any user action
  - Unauthorized minting of tokens on-chain
  - Private key or private key generation leakage leading to unauthorized access to user funds 
  - All other web/app impacts that would be classified as critical would be rewarded in a range between __USD 1 000__ and __USD 5 000__. The rest of the severity levels are paid out according to the Impact in Scope table. 

__Repeatable Attack Limitations__

In cases of repeatable attacks on smart contracts, only the first attack is considered unless the smart contract cannot be upgraded or paused. If the attack impacts a smart contract directly holding funds that cannot be upgraded or paused, the amount of funds at risk will be calculated with the first attack being at 100% of the funds that could be stolen and then a reduction of 25% from the amount of the first attack for every 300 blocks the attack needs for subsequent attacks from the first attack, rounded down. For avoidance of doubt, if a second attack would happen at 600 blocks and then a third at 900 blocks, the funds at risk would be counted at 50% and 25% from the first attack, respectively.

__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 300 block that the funds are temporarily frozen, up until a max cap of the high reward of __USD 10 000__. 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.    

__Reward Payment Terms__

Payouts are handled by the __Kwenta__ team directly and are denominated in __USD__. However, payments are done in __sUSD, USDC__ and __KWENTA__. Kwenta commits to honoring payouts according to the terms set out in this program at the time of report submission, and to treat this program as the agreement and source of truth concerning bug reports and responsible disclosures.

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.