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Documentation Index

Fetch the complete documentation index at: https://docs.monolith.market/llms.txt

Use this file to discover all available pages before exploring further.

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Overview

Monolith has adopted the SEAL Whitehat Safe Harbor Agreement, a legal framework developed by the Security Alliance that authorizes ethical security researchers to intervene during active exploits in order to rescue user funds. Under this framework, whitehats who detect an ongoing attack may take emergency action to recover funds on behalf of affected users. In exchange for a successful rescue, the whitehat is entitled to a bounty deducted from the recovered assets. The agreement provides legal protection to both the rescuing whitehat and the protocol community, and establishes clear rules governing when and how rescue attempts may occur. Monolith’s adoption was governed by the Inverse Finance DAO governance proposal available here.
Safe Harbor does not replace or modify the standard bug bounty program. It applies exclusively to scenarios involving active, ongoing exploitation of the protocol.

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How It Works

When an active exploit is detected, an authorized whitehat may:
  1. Intervene to halt or redirect the exploit
  2. Recover funds on behalf of affected users
  3. Receive a bounty deducted from the rescued assets as compensation
The rescued funds are returned to the protocol or to affected users. The bounty percentage and eligibility conditions are governed by the terms of the Whitehat Agreement. Whitehat actions taken in good faith under this framework are granted legal safe harbor — meaning the protocol community agrees not to pursue legal action against them for conduct covered by the agreement.

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User Agreement

By depositing assets into the Monolith protocol, users acknowledge and agree to the terms of the Safe Harbor Agreement as set out below.

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Exhibit D: User Adoption Procedures

User Agreement to be Bound By Agreement, Consent to Attempted Eligible Funds Rescues and Payment of Bounties The User hereby acknowledges and agrees to, and consents to be bound by the terms and conditions of, that certain Safe Harbor Agreement for Whitehats, adopted by the Inverse Finance DAO on March 5th, 2025 (the “Whitehat Agreement”), available here, as a “User” and member of the “Protocol Community” thereunder. Without limiting the generality of the foregoing:
  • the User hereby consents to Whitehats attempting Eligible Funds Rescues of any and all Tokens deposited into the Protocol by the User and the deduction of Bounties out of User’s deposited Tokens to compensate Eligible Whitehats for successful Eligible Funds Rescues;
  • the User acknowledges and agrees that Tokens may be lost, stolen, suffer diminished value, or become disabled or frozen in connection with attempts at Eligible Funds Rescues, and assumes all the risk of the foregoing;
  • the User acknowledges and agrees that payment of the Bounty as a deduction from User’s Tokens to an Eligible Whitehat may constitute a taxable disposition by the User of the deducted Tokens, and agrees to assume all risk of such adverse tax treatment; and
  • the User agrees to hold the other Protocol Community Members harmless from any loss, liability or other damages suffered by the User in connection with attempted Eligible Funds Rescues under the Whitehat Agreement.

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Further Reading

Bug Bounty

Report vulnerabilities and earn rewards through the Sherlock bug bounty program.

Audits

Review completed and ongoing third-party security audits.