Bracket Labs Group SA contributed the following description of Bracket Fi Escrow:

Bracket’s Escrow contracts aims to collect Liquid Staking Tokens (LSTs) in an escrow on both Layer 1 (L1) Ethereum and Layer 2 (L2) Arbitrum for a designated period in order to accumulate points for users until an escrow break event occurs.

Users are permitted to deposit and withdraw their funds any time until the escrow is broken. Once escrow is broke, the funds will be used to mint brktETH, where they will serve as collateral, backing brktETH’s value, users will be able to burn brktETH in exchange for the collateral any time they want.

brktETH will then be deposited into the escrow contract, where user will be able to claim an amount of brktETH with the same value of their deposits through a merkle tree distribution.

Zellic conducted a security assessment for Bracket Labs Group SA from April 16th and April 18th, 2024. During this engagement, Zellic reviewed Bracket Fi Escrow's code for security vulnerabilities, design issues, and general weaknesses in security posture.