Daimo codebase can be found at [https://github.com/daimo-eth.](https://github.com/daimo-eth) Documentation and further resources can be found on [https://github.com/daimo-eth/daimo ](https://github.com/daimo-eth/daimo)and [https://daimo.com/blog/p256verifier](https://daimo.com/blog/p256verifier)

Daimo is an ERC-4337 wallet on Ethereum. Daimo is used to send and receive stablecoin payments. Assets are held in self-custody in a secure and UX-friendly way using device-bound (Secure Enclave or Android KeyStore) keys and Passkeys.

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

Permanent freezing of funds

Protocol insolvency

Unauthorized spending of user funds without access to user keys

Execute arbitrary system commands

Retrieve sensitive data/files from a running server, such as:   /etc/shadow, database passwords, blockchain keys (this does not include non-sensitive environment variables, open source code, or usernames)

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.

Direct theft of user funds

Temporary freezing of funds

Temporary freezing of NFTs

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

Injecting/modifying the static content on the target application without JavaScript (reflected), such as:  Reflected HTML injection, Loading external site data

Redirecting users to malicious websites (open redirect)

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 smart contract bugs, the reward amount is 10% of the funds directly affected up to a maximum of USD 15 000. 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 10 000 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 attacks within the first hour 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 Calculation for High Level Reports__

High vulnerabilities concerning theft/permanent freezing of unclaimed yield/royalties are considered at the full amount of funds at risk, capped at the maximum high reward. This is to incentivize security researchers to uncover and responsibly disclose vulnerabilities that may have not have significant monetary value today, but could still be damaging to the project if it goes unaddressed.   

In the event of temporary freezing, the reward doubles from the full frozen value for every additional 24h that the funds are temporarily frozen, up until a max cap of the high reward. 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.

For critical web/apps bug reports will be rewarded with USD 10 000, only if the impact leads to:
- A loss of funds involving an attack that does not require any user action
- Private key or private key generation leakage leading to unauthorized access to user funds 

All other impacts that would be classified as Critical would be rewarded a flat amount of USD 5 000. The rest of the severity levels are paid out according to the Impact in Scope table.  

__Reward Payment Terms__

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

Daimo

Resources & Documentation