USDT0 acts as a one stop solution for USDT’s interoperability and expansion to new chains. At the heart of USDT0 is LayerZero’s Omnichain Fungible Token (OFT).

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

Protocol insolvency

Permanent freezing of funds

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

Documentation

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__

Critical Smart Contracts reports are reports that affect USDT redemptions on Ethereum, by either exploiting the Lockbox on ETH, or minting unbacked USDT0 on receival chains that will then be able to be redeemed on ETH.

For critical smart contract bugs, the reward amount is 10% of the funds directly affected up to a maximum of USD 6 000 000. 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 50 000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.


USDT0 is built on LayerZero, using the OFT v2 standard. Reports with impacts that are  already covered under the LayerZero Bug Bounty Program will be forwarded to the relevant LayerZero Bug Bounty Program. If the report is accepted by LayerZero's program, rewards will be determined and paid through their bounty program. Additional rewards from the USDT0 program for such issues are discretionary and may be awarded by the USDT0 team.


For the Protocol Insolvency impact, the amount considered at risk is the amount of USDT tokens kept in the USDT0 lockbox on ETH.

__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 USDT0 team directly and are denominated in USD. However, payments are done in Fiat USD via wire transfer or USDT and USDT0.

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.