Calculating the value of NFTs at risk

Calculating the value of funds at risk can be significantly more complicated when those funds are NFTs. This article covers Immunefi’s general principles for calculating the value of NFTs at risk.

If all or part of a collection of NFTs is at risk, then its value is evaluated based on the cumulative value of each NFT.

If an NFT is backed by some underlying collateral, then its value may be determined to be that of the underlying collateral.

If an NFT is listed on an NFT marketplace, then its value may be determined to be the floor price of the collection. However, if a specific NFT has been repeatedly traded, then its value may be determined based on its average value within recently made trades. This valuation method will only be used on a case-by-case basis to avoid incentivizing manipulation of an NFT’s value.

If only a single NFT is at risk, but the nature of the bug doesn’t specify which NFT will be at risk, in general, the minimum reward amount for that severity is to be paid. However, exceptions will be made on a case-by-case basis by Immunefi, especially in cases of repeatable NFT attacks.

If the circumstances are complex or unusual, the value of the NFTs at risk may need to be evaluated on a case-by-case basis by Immunefi. In this case, request help from Immunefi directly in the bug report.