Glossary

Arbitration Fee: A refundable fee paid to initiate the arbitration process when there's a disagreement with the Committee's assessment.

Arbitration Mechanism: A system allowing security researchers to challenge the Committee's decisions on submissions, with a third-party arbitrator providing an impartial judgment.

Audit Commencement: The phase where security researchers submit their findings directly on-chain during an audit.

Audit Competition Process: Hats Finance's approach combining traditional audits with decentralized solutions.

Audit Competition Promotion: Campaigns launched in partnership with protocols to engage security researchers.

Audit Competitions: Events where security professionals compete to uncover vulnerabilities in smart contracts.

Audit Request Initiation: The starting point for protocols to engage Hats Finance's audit services.

Audit Slot Reservation: Protocols reserve their audit slot by depositing into a dedicated vault.

Bug Bounties: Programs that reward individuals for identifying and reporting system vulnerabilities.

Challenge Period: A designated timeframe for disputing and reviewing submitted claims.

Code Update Audit: A focused audit on new code or modifications, particularly useful for projects with previous audit participation.

Committee's Preliminary Assessment: The initial evaluation of a claim by the project's committee.

Continued Engagement: Post-audit phase where protocols may opt to keep their vault active for ongoing bug bounties.

Decentralized Arbitration: A system for resolving disputes in audit competitions and bug bounty submissions fairly.

Dynamic Analysis: Testing smart contracts through unit and integration tests to identify untested areas and potential vulnerabilities.

Escalation Period for Additional Issues: A period provided for submitting overlooked issues post-audit.

Expert Committee: A group appointed to review disputes and suggest new payouts for challenged claims.

Hacker: An individual identifying and reporting potential security vulnerabilities.

Initial Claim Submission: The first step in the arbitration process, involving the on-chain submission of findings.

Kleros Court: A decentralized service offering final judgment on escalated disputes.

Liquidity Mining: A process where users provide liquidity to a project's token pool and receive rewards, often in the project's native tokens.

Manual Code Review: A thorough examination of smart contract code by auditors.

Post-Fix Review and Mainnet Launch Sign-Off: The final review stage post-fixes, leading to mainnet deployment approval.

Preliminary Assessment and Proposal: An initial review by Hats Finance based on provided details, shaping the audit process.

Public Competition with FCFS Mechanism: An open audit competition where any auditor can participate and submit vulnerabilities.

Review of Findings: The process of evaluating findings during and at the end of an audit competition.

Safety Period: A timeframe before public disclosure of a vulnerability for committee review and resolution.

Scope and Timeline Discussion: Detailed discussions with the protocol team to define the audit's scope and timeline.

Solo Auditor Engagement: A model where individual auditors are given a base fee for auditing contracts and triaging submissions.

Static Analysis: Using automated tools to scan code for common errors and known vulnerabilities.

Triage Competition: A proposed feature to incentivize community assistance in submission quality control.

Vault Committee: A group responsible for governance and claims management within Hats Finance.

Web3 Security Researchers: Specialists in identifying and addressing vulnerabilities within blockchain and smart contract ecosystems.

Whitehats: Ethical hackers focused on securing systems and reporting vulnerabilities.