Other helpful links include:
- Whitepaper - [https://www.academia.edu/98332701/The_SMARDEX_Protocol_A_Novel_Solution_to_Impermanent_Loss_in_Decentralized_Finance](https://www.academia.edu/98332701/The_SMARDEX_Protocol_A_Novel_Solution_to_Impermanent_Loss_in_Decentralized_Finance)

SMARDEX is an Automated Market Maker (AMM) that addresses the issue of Impermanent Loss (IL) and in some cases transforms it into Impermanent Gain (IG). It is an open-source Smart Contract, which is a decentralized software that runs on compatible Ethereum Virtual Machine blockchains (such as Ethereum, Binance Smart Chain, Avalanche, Polygon, etc.).

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

Theft of unclaimed yield

Theft of unclaimed royalties

Permanent freezing of unclaimed yield

Permanent freezing of unclaimed royalties

Temporary freezing of funds

Smart contract unable to operate due to lack of token funds

Block stuffing

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

Theft of gas

Unbounded gas consumption

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

Permanent freezing of funds

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

Protocol insolvency

SmarDex Codebase

SmarDex Documentation

Rewards are distributed according to the impact the vulnerability could otherwise cause based on the Impacts in Scope table further below. 

__Reward Calculation for Critical Level Reports__

This bug bounty program is divided into Group 1 and Group 2:
- Group 1: consists of Ethereum assets
- Group 2: consists of all other chains

Critical smart contract vulnerability payouts for Group 1 are a minimum of USD 20 000 or 5% of the value at risk at the time of report submission, with a hard cap of USD 500 000, whichever is larger. Value at risk should be calculated primarily (though not exclusively) based on concrete and demonstrable funds at risk.

Critical smart contract vulnerability payouts for Group 2 are a minimum of USD 20 000, or 5% of the value at risk at the time of report submission, with a hard cap of USD 300 000, whichever is larger. Value at risk should be calculated primarily (though not exclusively) based on concrete and demonstrable funds at risk.

__Repeatable Attack Limitations__

In cases of repeatable attacks for smart contract bugs, only the first attack will be counted, regardless of whether the smart contract is upgradable, pausable, or killable.

__Reward Calculation for High Level Reports__

The payout is determined to be 10% of the value at risk. The minimum reward is set at $15,000. The maximum rewards (hard cap) are as follows:  
- USD 50 000 for  Theft of unclaimed yield (for value of USD 500 000 at risk or greater)
- USD 50 000 for Theft of unclaimed royalties (for value of USD 500 000 at risk)
- USD 20 000 for Permanent freezing of unclaimed yield (for value of USD 200 000 at risk)
- USD 20 000 for  Permanent freezing of unclaimed royalties (for value of USD 200 000 at risk)
- USD 15 000 for Temporary freezing of funds (for value of USD 150 000 at risk)

Value at risk should be calculated primarily (though not exclusively) based on concrete and demonstrable funds at risk

__Reward Calculation for Medium Level Reports__

Medium smart contract vulnerabilities will be paid out by the following:
- USD 10 000 for Smart contract unable to operate due to lack of token funds
- USD 5 000 for Griefing (e.g. no profit motive for an attacker, but damage to the users or the protocol)
- USD 5 000 for Block stuffing
- USD 1 000 for Theft of gas
- USD 1 000 for  Unbounded gas consumption

__Public Disclosure of Known Issues__

Bug reports covering previously-discovered bugs acknowledged below are not eligible for any reward through the bug bounty program. 
- Data manipulation with very high and/or very small numbers that would be theoretically possible but not applicable in real conditions.
- Swap with bigger amount than fictive reserves are impossible even if the contracts theoretically hold enough tokens to execute the trade.
- Farming DOS
- Block stuffing to avoid the 300s protection and to exploit the vulnerability described in the white paper, section III. A.
- Any way of exploit the vulnerability described in the white paper, section III. A
- Griefing attack using users permit signature

__Previous Audits__

SmarDex has provided these completed audit review reports for reference. Any fixed, unfixed or acknowledged vulnerability mentioned in these reports are not eligible for a reward.
-[ https://smardex.io/audit-reports](https://smardex.io/audit-reports)

__Proof of Concept (PoC) Requirements__

A PoC is required for the following severity levels:
- Smart Contract - Critical
- Smart Contract - High
- Smart Contract - Medium
- Smart Contract - Low

All PoCs submitted must comply with the Immunefi-wide [PoC Guidelines and Rules.](https://immunefisupport.zendesk.com/hc/en-us/articles/9946217628561-Proof-of-Concept-PoC-Guidelines-and-Rules) Bug report submissions without a PoC when a PoC is required will not be provided with a reward.

__Other Terms and Information__

This bug bounty program is divided into Group 1 and Group 2 for the Critical Smart Contract reward
- Group 1: consists of Ethereum assets
- Group 2: consists of all other chains

__Reward Payment Terms__

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

In the last phase of the resolution process, we'll request that you confirm your Ethereum address. Once confirmed, rewards will be dispatched within three days, based on the CoinGecko price when the tokens are sent.