gru_emoney_token-factory/SECURITY.md

# Security Policy

## Supported Versions

We currently support the following versions with security updates:

| Version | Supported          |
| ------- | ------------------ |
| 1.0.x   | :white_check_mark: |

## Security Contact

For security issues, please contact the security team at: **security@example.com**

**DO NOT** create a public GitHub issue for security vulnerabilities.

## Vulnerability Disclosure Process

We take the security of the eMoney Token Factory system seriously. If you discover a security vulnerability, we appreciate your help in disclosing it to us responsibly.

### Reporting a Vulnerability

1. **Email us** at security@example.com with:
   - A clear description of the vulnerability
   - Steps to reproduce the issue
   - Potential impact assessment
   - Suggested fix (if available)

2. **Response Timeline**:
   - We will acknowledge receipt within 48 hours
   - Initial assessment within 7 days
   - We will keep you informed of the progress
   - Target resolution timeline: 30 days (may vary based on severity)

3. **What to Expect**:
   - Confirmation of the vulnerability
   - Regular updates on remediation progress
   - Credit in security advisories (if desired)
   - Notification when the issue is resolved

### Out of Scope

The following are considered out of scope for security vulnerability reporting:

- Issues in test contracts
- Issues in dependencies (report to the dependency maintainers)
- Denial of service attacks requiring significant capital
- Frontend/UI bugs that don't affect on-chain security
- Issues requiring social engineering or physical access

## Security Best Practices

### For Deployers

1. **Private Key Security**:
   - Never commit private keys to version control
   - Use hardware wallets for production deployments
   - Rotate keys regularly
   - Use dedicated deployment wallets with minimal funds

2. **Access Control**:
   - Use multisig wallets for admin roles in production
   - Implement timelock for critical operations
   - Regularly audit role assignments
   - Follow principle of least privilege

3. **Configuration**:
   - Validate all contract addresses before deployment
   - Verify registry configurations before going live
   - Test all upgrade procedures on testnets first
   - Document all configuration decisions

### For Token Issuers

1. **Compliance Management**:
   - Regularly update compliance statuses
   - Monitor for frozen accounts
   - Implement automated compliance checks where possible

2. **Lien Management**:
   - Document all lien placements and releases
   - Verify lien amounts before placing
   - Use appropriate reason codes
   - Monitor active encumbrances

3. **Policy Configuration**:
   - Understand lien modes before enabling
   - Test policy changes on testnets
   - Document policy rationale

### For Developers

1. **Code Security**:
   - Follow Solidity best practices
   - Use formal verification where applicable
   - Conduct thorough testing (unit, integration, fuzz)
   - Review all external dependencies

2. **Upgrade Safety**:
   - Test upgrades extensively before deployment
   - Maintain upgrade documentation
   - Verify storage layout compatibility
   - Use upgrade safety checks

## Known Limitations

1. **Light Client Verification**: The BridgeVault138 contract includes placeholder light client verification. In production, implement a proper light client verification system.

2. **Lien Expiry**: Liens use a "hard expiry" policy where expiry is informational only. Liens must be explicitly released by DEBT_AUTHORITY_ROLE.

3. **Upgrade Authorization**: Only DEFAULT_ADMIN_ROLE can authorize upgrades. In production, consider using a timelock or multisig.

4. **No Rate Limiting**: The system does not include built-in rate limiting. Implement at the application layer if needed.

5. **Compliance Registry**: The compliance registry does not automatically update. Manual intervention is required for compliance changes.

## Audit Status

### Completed Audits

- **Initial Audit**: Pending
  - Auditor: TBD
  - Date: TBD
  - Report: TBD

### Pending Audits

- Formal verification of lien enforcement logic
- Bridge security audit (pending light client implementation)
- Upgrade safety audit

## Bug Bounty

We currently do not operate a formal bug bounty program. However, we appreciate responsible disclosure and may offer rewards at our discretion for critical vulnerabilities.

## Security Considerations

### Architecture Security

- **Separation of Concerns**: Core functionality is separated into distinct contracts (ComplianceRegistry, DebtRegistry, PolicyManager)
- **Role-Based Access Control**: All privileged operations use OpenZeppelin's AccessControl
- **Upgradeability**: UUPS proxy pattern allows upgrades while maintaining upgrade authorization

### Operational Security

- **Multisig Support**: Contracts support multisig wallets for all admin roles
- **Emergency Pause**: PolicyManager supports token-level pause functionality
- **Enforcement Actions**: ENFORCEMENT_ROLE can execute clawback and forceTransfer for emergency situations

### Data Integrity

- **Immutable Registries**: Core registry addresses are immutable after deployment
- **Lien Aggregation**: Active encumbrances are aggregated and tracked in DebtRegistry
- **Compliance Enforcement**: All transfers check compliance status before execution

## Additional Resources

- [OpenZeppelin Security](https://github.com/OpenZeppelin/openzeppelin-contracts/security)
- [Consensys Best Practices](https://consensys.github.io/smart-contract-best-practices/)
- [Solidity Security Considerations](https://docs.soliditylang.org/en/latest/security-considerations.html)

## Changelog

- **2024-12-12**: Initial security policy published