Security

Smart Contract Security

Reentrancy Protection

All external state-changing functions use OpenZeppelin's ReentrancyGuard. The Checks-Effects-Interactions pattern is followed throughout.

Access Control

Function	Access
placeOrder() / cancelOrder()	Anyone (with sufficient balance)
clearBatch()	Anyone (permissionless)
resolveMarket()	Anyone (with valid Pyth data)
finalizeResolution()	Anyone (after finality window)
redeem()	Token holders
createMarket()	MARKET_CREATOR_ROLE
pause() / unpause()	Owner
setFeeCollector()	Owner

Bounded Iteration

No function iterates over unbounded sets. Segment trees provide O(log N) operations. Batch order count is capped at MAX_ORDERS_PER_BATCH (1600) with automatic overflow to the next batch. Settlement is chunked (SETTLE_CHUNK_SIZE = 400) so gas cost per clearBatch call remains bounded.

Emergency Controls

• Pausable: owner can pause market creation and trading protocol-wide or per-market

• 24h auto-cancel: markets without resolution auto-cancel, enabling full refunds

• Emergency withdrawal: users can withdraw via timelock if admin is unresponsive

Anti-Spam / DoS Prevention

• Minimum lot sizes prevent dust orders

• Full collateral locking creates economic cost for spam (capital locked until fill or cancel)

• Per-user active order cap: MAX_USER_ORDERS = 20 per market prevents a single address from flooding the order book

• Resting order list: orders far from the clearing price (>20 ticks) are parked outside the segment tree, preventing phantom volume from distorting price discovery while still locking collateral

Oracle Security

Pyth Integration

• All price data is cryptographically verified on-chain via Wormhole attestations

• parsePriceFeedUpdates verifies settlement price on-chain (earliest update in window)

• Confidence interval check rejects settlement if price uncertainty exceeds threshold (default 1%)

• Fallback windows handle rare Pyth publishing delays

Resolution Safety

• Finality gate: resolution waits for a 90-second finality period before finalizing

• Procedural challenge: anyone can submit a better qualifying Pyth update during finality window

• Replay protection: each market can only be resolved once

Trading Safety

• Full collateralization: all orders backed by locked USDT collateral

• No leverage: no margin, no liquidation risk

• Deterministic halt: trading stops when timeRemaining < batchInterval, preventing last-second exploitation

• Funds cannot be locked — cancellation/withdrawal always available

Auditing

Internal Audit v1.2

An internal security audit (v1.2) was conducted covering all core contracts. Key areas reviewed include fee split logic, chunked settlement, resting order mechanics, and per-user order caps. All findings have been addressed. See docs/technical/internal-audit-v1.2.md for the full report.

Static Analysis

• Slither static analysis

• Mythril symbolic execution

• Aderyn / 4naly3er additional coverage

• All high/medium findings addressed before mainnet