Safe Harbor Agreement

In March 2025, Inverse Finance DAO adopted the SEAL Whitehat Safe Harbor Agreement to strengthen our protocol’s ability to respond swiftly to active exploits. Safe Harbor represents a breakthrough in blockchain security, allowing vetted whitehats to legally intervene during live attacks, rescue imperiled assets, and redirect them to protocol-owned vaults. This process not only deters malicious actors but also rewards proactive defenders, enhancing our overall security posture.

Why It Matters Traditional responsible disclosure processes and bug bounties are reactive, guiding whitehats to report vulnerabilities once they’ve discovered them. However, during an ongoing exploit, timely intervention can make the difference between a small loss and a catastrophic one. Safe Harbor legally empowers whitehats to act immediately, recovering funds without fearing legal repercussions. By coupling financial incentives with explicit legal clarity, Safe Harbor fosters a community-driven approach to real-time security, filling a critical gap in DeFi’s defense mechanisms.

Implementation at Inverse Finance

• Bounty Terms: Whitehats receive up to 10% of the recovered assets, capped at $1,000,000.

• Recovery Addresses: Funds are sent to specific on-chain addresses managed by Inverse Finance.

• Anonymous Participation: Whitehats can remain anonymous, requiring no identity verification to ensure broader participation and faster rescues.

• On-Chain Registration: The agreement is registered on Ethereum via the Safe Harbor Registry, guaranteeing transparency and immutability.

• Ongoing Scope Updates: Newly deployed contracts can be added to the Safe Harbor scope via governance, ensuring continued coverage.