Security subDAO Pre-Proposal Module(without timelock)

Neutron’s codebase can be found at [https://github.com/neutron-org](https://github.com/neutron-org). Documentation and further resources can be found on [https://docs.neutron.org/](https://docs.neutron.org/).

By granting smart contracts the powers of an appchain, Neutron enables developers to build breakthrough applications and onboard users from anywhere. For more information about Neutron, please visit [https://www.neutron.org/](https://www.neutron.org/).  

Network not being able to confirm new transactions (total network shutdown)

Unintended permanent chain split requiring hard fork (network partition requiring hard fork)

Direct loss of funds

Permanent freezing of funds (fix requires hardfork)

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

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

Direct theft of any treasury funds

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

Permanent freezing of funds

Permanent freezing of NFTs

Unauthorized minting of NFTs

Predictable or manipulable RNG that results in abuse of the principal or NFT

Unintended alteration of what the NFT represents (e.g. token URI, payload, artistic content)

Protocol insolvency

Unintended chain split (network partition)

Temporary freezing of network transactions by delaying one block by 2400% or more of the average block time of the preceding 24 hours beyond standard difficulty adjustments

Causing network processing nodes to process transactions from the mempool beyond set parameters

RPC API crash affecting projects with greater than or equal to 25% of the market capitalization on top of the respective layer

Theft of unclaimed yield

Theft of unclaimed royalties

Permanent freezing of unclaimed yield

Permanent freezing of unclaimed royalties

Temporary freezing of funds

Temporary freezing of NFTs

Increasing network processing node resource consumption by at least 30% without brute force actions, compared to the preceding 24 hours

Shutdown of greater than or equal to 30% of network processing nodes without brute force actions, but does not shut down the network

A bug in the respective layer 0/1/2 network code that results in unintended smart contract behavior with no concrete funds at direct risk

Block stuffing

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

Unbounded gas consumption

Shutdown of greater than 10% or equal to but less than 30% of network processing nodes without brute force actions, but does not shut down the network

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__

For critical Blockchain/DLT bugs, the reward amount is 10% of the funds directly affected, capped at the maximum critical reward USD 1 000 000. However, a minimum reward of USD USD 20 000 is to be rewarded in order to incentivize security researchers against withholding on a bug report.

For critical Blockchain/DLT bugs with a non-funds-at risk impact, the reward will be paid out as follows: 
Network not being able to confirm new transactions (total network shutdown)
USD 20 000  
Unintended permanent chain split requiring hard fork (network partition requiring hard fork)
USD 20 000   
Permanent freezing of funds (fix requires hardfork)
USD 10 000 

For high Blockchain/DLT non-funds-at risk impacts, the reward will be paid out as follows: 

- Temporary freezing of network transactions by delaying one block by 2400% or more of the average block time of the preceding 24 hours beyond standard difficulty adjustments - USD 10 000  
- Causing network processing nodes to process transactions from the mempool beyond set parameters - USD 10 000 
- RPC API crash affecting projects with greater than or equal to 25% of the market capitalization on top of the respective layer - USD 10 000 

For critical smart contract bugs, the reward amount is 10% of the funds directly affected up to a maximum of USD 1 000 000. 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 5 000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.

__Repeatable Attack Limitations__

- If the smart contract where the vulnerability exists can be upgraded or paused, only the initial attack 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 cannot 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 Payment Terms__

Payouts are handled by the Neutron team directly and are denominated in USD. However, payments are done in NTRN. 

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.

Neutron

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