Security & Audits

Security audits, testing practices, and guarded launch strategy

LayerCover has not yet launched on mainnet. All audits and programs below are planned milestones. This page will be updated with reports as they are completed.

LayerCover takes a defence-in-depth approach to security - formal audits, economic stress testing, a guarded launch, and a bug bounty program all work together to protect user funds.

Security Strategy

Audit Timeline

Phase	Timeline	Scope	Status
Pre-Seed Audit	Q1 2026	Core suite - PolicyManager, RiskManager, CapitalPool, PoolRegistry	🔜 Planned
Post-Seed Audit 1	Q3 2026	Independent re-audit of upgraded contracts and deployment scripts	📋 Scheduled
Post-Seed Audit 2	Q3 2026	Second independent audit with operational runbook review	📋 Scheduled

Guarded Mainnet Launch

To mitigate early-stage risk, LayerCover will execute a staged mainnet rollout (similar to EigenLayer):

Safeguard	Description
Deposit Caps	Initial liquidity strictly limited via global TVL caps and per-pool maximums
Progressive Expansion	Caps raised incrementally via governance after stability milestones are met
Monitoring	Real-time on-chain monitoring with automated circuit breakers

Economic Risk Review

Target: Q3–Q4 2026

Before mainnet launch, we will commission third-party economic simulations (targeting partners like Gauntlet or Chaos Labs) to validate:

Reserve ratios and solvency margins under stress
Coverage limit calibration
Fee and premium sensitivity to market volatility

Bug Bounty Program

Launch: Q4 2026

LayerCover will launch a $1,000,000 bug bounty program hosted on Immunefi.

Detail	Value
Total Pool	$1,000,000
Scope	All production smart contracts, SDKs, APIs, and frontends
Payouts	Tiered based on severity (OWASP/Impact)
Launch Event	Time-bound competition with bonus multipliers for pre-launch discoveries

Access Controls - Role hierarchy and permission matrices
Smart Contracts - Full interface reference
Governance - How protocol parameters are changed