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Security Audits

Comprehensive overview of MegaFi security measures and planned audits. Understand the security approach and roadmap for protocol protection.

At a Glance​

  • Smart contract audits planned before mainnet launch
  • Security-focused development practices
  • Open-source code for transparency
  • Multi-tier testing in progress
  • Continuous security monitoring planned

Audit Overview​

Audit Status​

Current Status: Pre-audit phase. Smart contracts are in development and testing.

Planned Audits:

  • Multiple independent security firms to be engaged
  • Comprehensive coverage of all protocol components
  • Audits to be completed before mainnet launch

Timeline: Audits scheduled for completion prior to production deployment.

Note: MegaFi is currently in development. Users should be aware that smart contracts have not yet undergone professional security audits. Use testnet deployments at your own risk.

Planned Audit Coverage​

DEX​

Contracts for Audit:

  • PoolFactory
  • Pool implementation
  • PositionManager (LP NFTs)
  • SwapRouter
  • Quoter
  • Periphery contracts

Focus Areas:

  • Concentrated liquidity math
  • Fee calculation accuracy
  • Position management security
  • Reentrancy protection
  • Integer overflow/underflow
  • Access control

Auto-Pools​

Contracts for Audit:

  • StrategyManager
  • RebalanceExecutor
  • Strategy mode implementations
  • Zone calculators

Focus Areas:

  • Automated rebalancing logic
  • Gas optimization safety
  • Strategy parameter validation
  • Emergency pause mechanisms
  • Operator permissions

Hedge​

Contracts for Audit:

  • OptionFactory
  • OptionContract
  • CollateralManager
  • Pricing oracles
  • Settlement logic

Focus Areas:

  • Option pricing accuracy
  • Collateral management
  • Collateralization mechanisms
  • Exercise logic
  • Expiration handling

Security Measures​

Smart Contract Security​

Reentrancy Guards: All external functions with state changes protected.

modifier nonReentrant() {
    require(_status != _ENTERED, "ReentrancyGuard");
    _status = _ENTERED;
    _;
    _status = _NOT_ENTERED;
}

Overflow Protection: Solidity 0.8+ automatic checks.

Access Control: Role-based permissions with OpenZeppelin AccessControl.

Pausable: Emergency pause for all critical operations.

Upgrade Safety: Time-locked upgrades with multi-sig approval.

Oracle Security​

Price Feeds: Multiple oracle sources aggregated.

Manipulation Protection: TWAP (Time-Weighted Average Price) for critical operations.

Staleness Checks: Reject outdated price data.

Fallback Mechanisms: Secondary oracles if primary fails.

Operational Security​

Multi-Sig: Critical operations require multiple signatures.

Timelock: Delays for parameter changes and upgrades.

Monitoring: 24/7 automated monitoring for anomalies.

Incident Response: Documented procedures for security events.

Known Risks​

Smart Contract Risks​

Complexity Risk: Advanced DeFi protocols inherently complex.

Mitigation: Extensive testing, multiple audits, gradual rollout.

Upgrade Risk: Proxy upgrades could introduce vulnerabilities.

Mitigation: Time-locked upgrades, community review, test deployments.

Composability Risk: Integration with other protocols introduces dependencies.

Mitigation: Careful integration testing, fallback mechanisms.

Economic Risks​

Impermanent Loss: Inherent to AMM liquidity provision.

Disclosure: Clearly documented in user-facing materials.

Liquidation Risk: Under-collateralized options positions.

Protection: Conservative margin requirements, automated liquidations.

Oracle Risk: Price manipulation could affect positions.

Mitigation: Multiple oracle sources, TWAP, manipulation detection.

Operational Risks​

Centralization Risk: Some operations initially centralized.

Disclosure: Transparent about centralized components.

Roadmap: Progressive decentralization over time.

Key Management: Admin keys control critical functions.

Protection: Multi-sig with multiple geographically distributed signers.

Incident Response​

Detection​

Automated monitoring alerts team to:

  • Unusual transaction patterns
  • Large fund movements
  • Failed transaction spikes
  • Oracle anomalies
  • Gas price spikes

Response Procedure​

1. Alert received
2. Severity assessed
3. Team assembled
4. Issue investigated
5. Response executed:
   - Pause if critical
   - Deploy fix
   - Communicate status
6. Post-mortem published

Communication​

During incidents:

X: @megafi_app

Discord: #announcements channel

Security Best Practices​

For Users​

Wallet Security:

  • Use hardware wallets for large amounts
  • Verify all transaction details
  • Never share private keys
  • Be wary of phishing attempts

Transaction Safety:

  • Verify contract addresses
  • Set appropriate slippage
  • Check gas estimates
  • Review transaction details

Position Management:

  • Understand impermanent loss
  • Monitor margin levels
  • Set stop-losses
  • Diversify positions

For Developers​

Integration Security:

  • Verify contract addresses from official sources
  • Implement proper error handling
  • Test thoroughly before production
  • Monitor transaction success rates

User Fund Protection:

  • Never store private keys
  • Use secure RPC providers
  • Implement transaction confirmations
  • Provide clear warnings

Testing and Verification​

Current Testing​

Test Coverage:

  • Unit tests for all contract functions
  • Integration tests for multi-contract interactions
  • Scenario-based testing
  • Gas optimization testing

Static Analysis:

  • Slither for vulnerability detection
  • Solhint for code quality
  • Automated security checks in CI/CD

Planned Formal Verification​

Critical components planned for formal verification:

Target Components:

  • Core AMM math
  • Fee calculations
  • Liquidity zone logic
  • Option pricing formulas

Planned Methods:

  • Symbolic execution
  • Model checking
  • Theorem proving

Development Security Practices​

Code Quality​

Current development practices:

Code Reviews: All code reviewed before merge

Test Coverage: Comprehensive test suite

Static Analysis: Automated vulnerability scanning

Gas Optimization: Efficient contract design

Planned Continuous Security​

Post-launch security measures:

Regular Audits: Scheduled external audits

Pre-Release Audits: Before major upgrades

Monitoring: 24/7 automated transaction monitoring

Incident Response: Documented procedures and response team

Security Disclosures​

Transparency Commitment​

MegaFi is committed to full transparency regarding security:

Current Status: Protocol in development and testing phase

Future Disclosure Policy:

  • All audit reports will be published
  • Security incidents will be disclosed promptly
  • Vulnerability findings will be documented
  • Resolutions will be detailed publicly

Post-Audit Updates​

After audits are completed:

  • Full audit reports will be published
  • All findings and resolutions documented
  • Security roadmap updates provided
  • Ongoing security measures detailed

Contact​

Security-related or any other inquiries:

Email: contact@megafi.app

Resources​

Code Repository: GitHub/Mega-Fi

Audit Reports: Will be published after completion

FAQ​

Are smart contracts audited?
Not yet. Audits are planned and will be completed before mainnet launch. The protocol is currently in development and testing.

What if I find a vulnerability?
Report to contact@megafi.app. All security concerns are taken seriously and will be addressed promptly.

Is the code open source?
Yes. All smart contracts will be open source and verified on block explorers.

Should I use MegaFi now?
Current deployments are for testing only.

Next Steps​

Understand security:

Security first. Always.