# Awarding process

## Awarding process

At the conclusion of an audit, sponsors review wardens’ findings and express their opinions with regard to severity of issues. Judges evaluate input from both and make the ultimate decision in terms of severity and validity of issues. (See [Judging criteria](/competitions/judging-criteria.md) for more detail.)

In making their determination, judges evaluate submissions within the Code4rena app.

The judge's decisions are reviewed by the sponsoring project team and by wardens via a [48-hour QA process](/competitions/judging-criteria.md#post-judging-qa-pjqa), to ensure fairness and quality.

Judging data is used to generate the awards using Code4rena's [award calculation script](/awarding.md), which factors in:

* Risk level
* Validity
* Number of duplicates
* Rank (1st, 2nd, 3rd; Satisfactory/Unsatisfactory)
* In some cases, "partial duplicate" status

It should be possible to reverse engineer awards using a combination of two CSV files:

* [`findings.csv`](https://code4rena.com/community-resources/findings.csv): valid Code4rena findings
* [`contests.csv`](https://code4rena.com/community-resources/contests.csv): Code4rena audits

Once awards are determined, we generate a CSV file enumerating funds to be sent. Distribution is then initiated using disperse.app and sent to multisig signers for completion of payment.

### Award distribution requirements and schedule

{% hint style="warning" %}
All participants in Code4rena audits must provide C4 with [tax reporting information](#tax-information-for-code4rena-contributors-wardens-judges-etc) in order to receive payment. Participants with lifetime total earnings of $1,000 or more are also required to verify their identity.
{% endhint %}

Awards are sent in two batches:

1. Participants who have already completed the payout requirements when awards are announced will receive awards with 1 week of the announcement.
2. Once the 30-day window (after the announcement) passes, C4 will review any newly submitted tax info and/or verification requests, and send the second and final batch of awards within 1 week. *If you do not complete the award requrements within 30 days of the award announcement, you will not be eligible to receive that award.*

From a timing standpoint, it is sufficient to have *submitted* your tax information by the allotted deadline; it does not need to have been reviewed or approved by us by the deadline. However, your submission must be reviewed and approved in order for Code4rena to pay you.

Registered users can [submit their tax information here](https://code4rena.com/tax-info).

### If you don't see your award in your wallet:

1. Review the award distribution requirements and schedule above.
2. Double-check that your tax information was successfully submitted, by visiting [your C4 account settings page](https://code4rena.com/account), under "Tax information."
3. If awards have been sent, and you don’t see them in your wallet, verify that you have imported the USDC token into your Ethereum wallet. (MetaMask instructions [here](https://support.metamask.io/manage-crypto/tokens/how-to-display-tokens-in-metamask/).)
4. If you still don’t see the award in your wallet, please [open a help desk ticket](https://code4rena.com/help).

#### ID verification required for lifetime earnings of $1,000 or more

*This requirement applies to competitions starting on or after March 23, 2026.*&#x20;

* When a user's cumulative earnings go above $1,000, they must successfully [verify their identity](/roles/certification-id-verification.md) before receiving any further payouts.
* This applies to both individual warden accounts and teams.&#x20;
* For teams:&#x20;
  * Each team member's individual earnings count towards the $1,000 threshold for the team.&#x20;
  * If the team's cumulative earnings (both as a team, and from all individual members' earnings) exceed $1,000 (e.g. if team member A has lifetime earnings of $400, and team member B has lifetime earnings of $600), *and* the team earns a reward that would bring their cumulative earnings to $1,000 or more, all team members will be required to successfully verify their identity.&#x20;
  * The team's earnings also count towards each member's individual earnings, for the purpose of this requirement. So if e.g. a team has earned $999 and an individual member of that team earns $1, the individual warden will be required to successfully verify their identity.&#x20;

## Tax information for Code4rena contributors (wardens, judges, etc)

Code4rena has tax reporting responsibility as a US entity. As such, we have created a system and process for enabling tax reporting which also ensures confidentiality and privacy.

Wardens and other contributors (e.g. judges, validators, scouts, etc.) who are eligible to receive awards from Code4rena must [complete a questionnaire](/getting-started.md#tax-reporting-information) to determine what, if any, U.S. reporting or withholding obligations exist.

[Warden teams](/getting-started.md#registering-a-team) must ensure that all team members have submitted their tax information in order to receive awards.

Based on our obligations to operate within tax regulation, completing that questionnaire is required by participants in order to receive awards.

Wardens are encouraged to review Code4rena's [Submission Policy](/legal/submission-policy.md), particularly the "Representations and Warranties" section.

## Tax and legal questions

> *Note: Do your own research; this is not legal or tax advice. You should consult a professional in your area.*

We are occasionally asked how wardens should declare Code4rena earnings for tax (or other financial/legal) purposes. You must assess and determine your own best course of action.

Legal entity details for invoices, which can be sent to admin (at) code4rena \[dotcom]:

ZC Security Holdings, LLC\
228 Park Ave S #97576\
New York NY USA


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