Security

Unstake for security

Surge is designed to ensure that a stake owner can always unstake and get back the staked assets, except in one special case. If the deal successfully closes, there is a seven day period where the stake owner may not be able to unstake, depending on the terms of the deal. During this time, the sponsor can claim stakes and deliver the assets promised by the deal.

Unstaking will always be possible when a deal is canceled, or closes by claiming, or closes by passing the time limit for claiming. If something goes wrong with a deal, stakers can unstake, and the sponsor should cancel the deal.

Closing delay

Surge deals allow time for stake owners to review the terms of an offer, and unstake if they do not like the terms. This time is called the "Closing delay". The default closing delay is seven days. Sponsors can select a different closing delay when they first configure a deal.

A sponsor cannot change any of the following variables if the closing time is closer than the deal's closing delay parameter.

• Description

• Sponsor Website

• Minimum claim

• Maximum claim

• Arbitrator

Claiming and Delivery

The current release of Surge does not automatically distribute assets to fulfill the sponsor's terms. Instead, it gives sponsors options for delivering off-chain securities, and bonus assets that are different from the delivered assets, such as warrants or GP stakes. It gives sponsors the opportunity to use their own calculations of bonuses and bonding curves. This flexibility adds some delivery risk. It approximately matches the delivery risk of centralized launchpads, sales from a multisig address, and airdrops.

A Surge deal can require approval from an arbitrator, before it allows a sponsor to claim stakes. The arbitrator can check for correct delivery of the promised deal terms.

In the future, Surge will include delivery "hooks" that can do things like distribute tokens to the accounts that contribute claims, and deposit claims into a liquidity pool. These packaged deliveries will remove or reduce the need for arbitration.

Decentralization

The deal smart contract enforces a relationship between stake owners, a deal sponsor, and an optional arbitrator. A Surge deal has no functions for Surge governance or administration. Surge Protocol cannot interfere with the rights to unstake, or change the terms of a deal.

Audits

The Surge smart contract repository contains audit reports.

The first audit report is from Hashlock on 10 June 2024. It covers deals with single-token staking. The Surge team fixed issues in the initial report and earned a "Secure" rating