Hermetica

Hermetica brings decades of experience from leading crypto and financial institutions, including Kraken, to build Bitcoin finance.

Hermetica believes a decentralized, Bitcoin-powered financial system is a foundational pillar of a prosperous and free society. Hermetica builds open, durable financial infrastructure designed to operate globally and at scale, empowering individuals with resilient financial tools in their pursuit of financial freedom.

There's one product in scope for the program: hBTC, a Bitcoin yield vault written in Clarity with ERC-4626–style share mint/redeem, daily NAV updates, and strategy execution via external protocol integrations.

For more information about Hermetica, please visit https://docs.hermetica.fi/

Rewards

Hermetica provides rewards in USDC on Ethereum, denominated in USD.

Rewards by Threat Level

Smart Contract

Critical

• Max: $100,000
• Min: $20,000
• Primacy of Impact

High

• Max: $20,000
• Min: $1,000
• Primacy of Impact

Websites and Applications

Critical

• Max: $25,000
• Min: $5,000

Critical Reward Calculation

Mainnet assets:

Reward amount is 10% of the funds directly affected up to a maximum of $100,000.

Minimum reward to discourage security researchers from withholding a bug report: $20,000

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 100,000. 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 20,000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.

For critical web/apps bugs, reports will be rewarded with USD 25,000, 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.

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
• The amount of funds at risk will be calculated with the impact of the first attack being at 100% 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.

Reward Calculation for High Level Reports

High vulnerabilities concerning theft/permanent freezing of unclaimed yield/royalties are rewarded within a range of USD 1,000 to USD 20,000 depending on the funds at risk, capped at the maximum high reward.

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 lengthens, 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 Hermetica team directly and are denominated in USD. However, payments are done in USDC on Ethereum.

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.

Program Policies

Responsible Publication

Hermetica adheres to Category 3: Approval Required. This Policy determines what information researchers are allowed to make public from their submitted bug reports.

Primacy of Impact vs Primacy of Rules

Hermetica adheres to the Primacy of Impact for the following impacts:

• Smart Contract — Critical
• Smart Contract — High

Primacy of Impact means that the impact is prioritized rather than a specific asset. This encourages security researchers to report on all bugs with an in-scope impact, even if the affected assets are not in scope.

When submitting a report on Immunefi's dashboard, the security researcher should select the Primacy of Impact asset placeholder. If the team behind this project has multiple programs, those other programs are not covered under Primacy of Impact for this program. Instead, check if those other projects have a bug bounty program on Immunefi.

If the project has any testnet and/or mock files, those will not be covered under Primacy of Impact.

All other impacts are considered under the Primacy of Rules, which means that they are bound by the terms and conditions set within this program.

Proof of Concept (PoC) Requirements

A PoC, demonstrating the bug's impact, is required for this program and has to comply with the Immunefi PoC Guidelines and Rules.

Proof of concept is always required for all severities.

Previous Audits

Hermetica's completed audit reports can be found at https://docs.hermetica.fi/hbtc/audits. Any unfixed vulnerabilities mentioned in these reports are not eligible for a reward.

KYC not required

No KYC information is required for payout processing.

Prohibited Activities

• Any testing on mainnet or public testnet deployed code; all testing should be done on local-forks of either public testnet or mainnet
• Any testing with pricing oracles or third-party smart contracts
• Attempting phishing or other social engineering attacks against our employees and/or customers
• Any testing with third-party systems and applications (e.g. browser extensions) as well as websites (e.g. SSO providers, advertising networks)
• Any denial of service attacks that are executed against project assets
• Automated testing of services that generates significant amounts of traffic
• Public disclosure of an unpatched vulnerability in an embargoed bounty
• Any other actions prohibited by the Immunefi Rules

Feasibility Limitations

The project may be receiving reports that are valid (the bug and attack vector are real) and cite assets and impacts that are in scope, but there may be obstacles or barriers to executing the attack in the real world. In other words, there is a question about how feasible the attack really is. Conversely, there may also be mitigation measures that projects can take to prevent the impact of the bug, which are not feasible or would require unconventional action and hence, should not be used as reasons for downgrading a bug's severity.

Therefore, Immunefi has developed a set of feasibility limitation standards which by default states what security researchers, as well as projects, can or cannot cite when reviewing a bug report.