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SECURITY.md

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+# Security Policy
+
+## Introduction
+
+Security researchers are essential in identifying vulnerabilities that may impact the Nomic ecosystem. If you have discovered a security vulnerability in the Nomic network or any repository managed by the Nomic DAO Foundation, we encourage you to notify using one of the methods outlined below.
+
+### Guidelines for Responsible Vulnerability Testing and Reporting
+
+1. **Refrain from testing vulnerabilities on publicly accessible environments**, including but not limited to:
+  - Nomic mainnet.
+  - Nomic frontend.
+  - Nomic public testnets.
+  - Nomic testnet frontend.
+2. **Avoid reporting security vulnerabilities through public channels, including GitHub issues.**
+
+## Security Audits
+
+| Date | Auditor | Scope | Report |
+| ---: | :---: | :--- | :---: |
+| October 2024 | Trail of Bits | `nomic` <br> `nomic-bitcoin-js` | [📄](https://github.com/trailofbits/publications/blob/master/reviews/2024-11-nomic-securityreview.pdf) |
+
+### Dependency Security Audits
+
+| Date | Auditor | Scope | Report |
+| ---: | :---: | :--- | :---: |
+| October 2024 | Trail of Bits | `orga` `merk` `ed` `abci2` | [📄](https://github.com/trailofbits/publications/blob/master/reviews/2024-11-orgaandmerk-securityreview.pdf) |
+
+## Reporting a Vulnerability
+
+To privately report a security vulnerability, please choose one of the following options:
+
+### 1. Email
+
+Send your detailed vulnerability report to `[email protected]`.
+
+### 2. GitHub Private Vulnerability Reporting
+
+Utilize [GitHub's Private Vulnerability Reporting](https://github.com/nomic-io/nomic/security/advisories/new) for confidential disclosure.
+
+## Submit Vulnerability Report
+
+When reporting a vulnerability through either method, please include the following details to aid in assessment:
+
+- Type of vulnerability.
+- Description of the vulnerability.
+- Steps to reproduce the issue.
+- Impact of the issue.
+- Explanation of how an attacker could exploit it.
+
+## Vulnerability Disclosure Process
+
+1. **Initial Report**: Submit the vulnerability via one of the above channels.
+2. **Confirmation**: We will confirm receipt of your report within 48 hours.
+3. **Assessment**: Our security team will evaluate the vulnerability and inform you of its severity and the estimated time frame for resolution.
+4. **Resolution**: Once fixed, you will be contacted to verify the solution.
+5. **Public Disclosure**: Details of the vulnerability may be publicly disclosed after ensuring it poses no further risk.
+
+During the vulnerability disclosure process, we ask security researchers to keep vulnerabilities and communications around vulnerability submissions private and confidential until a patch is developed. Should a security issue require a network upgrade, additional time may be needed to raise a governance proposal and complete the upgrade.
+
+During this time:
+
+- Avoid exploiting any vulnerabilities you discover.
+- Demonstrate good faith by not disrupting or degrading Nomic's services.
+
+## Severity Characterization
+
+| Severity     | Description                                                              |
+|--------------|--------------------------------------------------------------------------|
+| **CRITICAL** | Immediate threat to critical systems (e.g., chain halts, funds at risk). |
+| **HIGH**     | Significant impact on major functionality.                               |
+| **MEDIUM**   | Impacts minor features or exposes non-sensitive data.                    |
+| **LOW**      | Minimal impact.                                                          |
+
+## Bug Bounty
+
+Though Nomic does not yet have an official bug bounty program, the Nomic DAO Foundation generally offers rewards to security researchers who responsibly disclose vulnerabilities. Bounties are generally awarded for vulnerabilities classified as **high** or **critical** severity. Bounty amounts will be determined during the disclosure process, after the severity has been assessed.
+
+> [!WARNING]
+> Targeting production environments will disqualify you from receiving any bounty.
+
+## Feedback on this Policy
+
+For recommendations on how to improve this policy, either submit a pull request or email `[email protected]`.