Disclaimer: I was a Security Engineer on the FB Security Team until last month and regularly attended the payout meetings :-)
I've seen plenty of bug bounty programs making such claims, but the Facebook program keeps up to this promise the most. Every bug is root caused to the line that caused the issue and assessed on maximal potential impact.
Sometimes that leads to cases where low impact vulnerabilities got paid out tens of thousands of dollars. The big bounty often came as a big surprise to the reporter :-)
Just a recent example: a bug bounty hunter reported unexpired CDN links. After internal research, FB figured out to chain this into a Remote Code Execution and paid out 80k USD (https://www.facebook.com/BugBounty/posts/approaching-the-10t...)
Facebook has big pockets. As a bug bounty hunter, I'd not worry about being screwed by them. It's by far one of the best paying bounty programs.
There are many reasons to criticize Facebook or Instagram. But the handling of its application security should not be in the top 10 :-)