Smart Contract Security Audit Checklist for Tokenization
Security audit guide: This article covers audit checklists. For comprehensive blockchain security and technology guidance, see Blockchain Security & Token Technology: 2025 Reference Guide.
Smart contract bugs can cost millions. This checklist covers essential security reviews for tokenized asset contracts.
For foundational understanding of tokenization, see our Ultimate Guide to Tokenization and RWA. For legal and compliance frameworks, explore our Tokenization Legal Structure guide.
Pre-Audit Preparation#
- Source code in version control (Git)
- All dependencies documented
- Compilation succeeds without warnings
- Test suite exists and passes
- Deployment scripts ready
- Emergency pause mechanisms designed
Common Vulnerabilities (OWASP Top 10 for Smart Contracts)#
V1: Reentrancy Attacks#
- All external calls moved to end (Checks-Effects-Interactions pattern)
- State changes happen BEFORE calls
- Mutex locks used if needed
- No callback functions allowed mid-operation
V2: Integer Overflow/Underflow#
- Using SafeMath or Solidity 0.8+
- No manual arithmetic without guards
- Uint256 sizes appropriate
- Overflow tests included
V3: Timestamp Dependence#
- Not using block.timestamp for critical logic
- No reliance on exact time matching
- Randomness uses proper VRF
V4: Delegatecall Vulnerabilities#
- Delegatecall only to trusted contracts
- Storage layout unchanged across versions
- Proxy pattern properly implemented
- Constructor not used (use initializer)
V5: Front-Running#
- Critical transactions use commit-reveal
- Order matters (sequencing attacks considered)
- Price oracle not easily manipulable
- Slippage protection included
V6: Access Control Flaws#
- All sensitive functions properly gated
- Role-based access control (RBAC) implemented
- No public functions that should be internal
- Owner functions properly protected
V7: Arithmetic Precision Issues#
- Decimal places handled consistently
- Rounding done safely (favor users)
- No lossy conversions
- Fixed-point math if needed
V8: Gas Optimization Issues#
- Storage reads minimized
- Loops don't process unbounded arrays
- Gas limits in loops considered
- Batch operations provided
V9: Logic Errors#
- State machine implemented correctly
- All paths tested
- Edge cases handled
- Race conditions considered
V10: Missing Input Validation#
- All inputs validated (require statements)
- Zero address checks
- Bounds checking on arrays
- Type validation for complex inputs
ERC-3643 Specific Checks#
- Identity Registry properly connected
- Compliance contracts preventing transfers
- Claim Issuer interface properly implemented
- Allowed Whitelist functioning
- Modular compliance system scalable
- Identity verification immutable
- Claim revocation properly handled
Tokenization-Specific Checks#
- Token supply immutable post-launch
- Pause mechanism has time limits
- Emergency withdrawal properly gated
- No owner backdoors in code
- Dividend/distribution logic tested
- Transfer restrictions clear
- Burn mechanism (if exists) tested
- Minting only by authorized parties
Testing Checklist#
- Unit tests cover 90%+ code paths
- Integration tests for token transfers
- Deployment tests on testnet
- Stress tests with many users
- Upgrade path tested (if proxy)
- Failure scenarios tested
- Gas usage analyzed
- Security tests (reentrancy, etc.)
Code Quality#
- No console.log left in production
- Code properly formatted
- Comments for complex logic
- Function signatures clear
- Events properly emitted
- Error messages informative
- No hardcoded addresses
- No test code in production
Dependencies & Imports#
- All libraries pinned to versions
- No outdated libraries
- Known vulnerabilities checked
- Library updates reviewed
- Audit reports for libraries obtained
- Transitive dependencies checked
Deployment Security#
- Private keys properly stored
- Deployment accounts have minimal funds
- Testnet deployment successful first
- Pause mechanism works
- Owner roles properly assigned
- Whitelists properly configured
- Initial state correct
- Monitoring set up
Post-Deployment Monitoring#
- Transaction logs monitored
- Balance checks automated
- Large transfer alerts set
- Access control logs reviewed
- State changes tracked
- Emergency contacts established
- Incident response plan ready
Audit Firm Evaluation#
- Firm has RWA/security token experience
- Audit scope clearly defined
- Timeline and cost agreed
- Deliverables specified (report, fixes)
- Severity classification understood
- Fix verification process defined
- Retainer for follow-ups considered
Red Flags That Require Halt#
- 🚨 Reentrancy vulnerability found
- 🚨 Access control bypass possible
- 🚨 Fund loss scenario identified
- 🚨 Infinite loop possible
- 🚨 State can be corrupted
- 🚨 Owner has hidden backdoors
- 🚨 Critical mathematical errors
Green Flags#
- ✅ Professional audit completed
- ✅ All high-severity issues fixed
- ✅ Test coverage >90%
- ✅ Emergency pause works
- ✅ Clear upgrade path
- ✅ Compliance properly enforced
- ✅ Community transparency shown
Estimated Audit Costs#
| Scope | Time | Cost |
|---|---|---|
| Basic (under 500 LOC) | 1 week | 15-25K USD |
| Medium (500-2K LOC) | 2-3 weeks | 30-60K USD |
| Complex (2K+ LOC) | 4-8 weeks | 75-200K+ USD |
| Retainer (ongoing) | Monthly | 5-10K USD |
Recommended Auditors (Tokenization Specialists)#
- OpenZeppelin
- ConsenSys Diligence
- Trail of Bits
- Certora
- Quantstamp
Learn More: Blockchain Security & Token Technology#
Comprehensive Technology Guide:
→ Blockchain Security & Token Technology: 2025 Reference Guide - Complete technical reference
Related Technology Articles:
- ERC-3643 vs ERC-1400: Security Token Standards Explained - Standards comparison
- Tokenization Platform Security: What Investors Need to Know - Platform security
- Blockchain Security: Best Practices for Asset Tokenization - Security best practices
- Cross-Border Tokenized Settlement: Revolutionizing International Asset Transfers - Settlement technology
Enterprise:
- Best Tokenization Platforms 2025: Enterprise Comparison Guide - Platform technical comparison
Next Steps:
- Contact Our Technical Team for audit services
- Schedule a Security Consultation - Get expert advice
Disclaimer: This checklist is educational. Engage professional auditors for production contracts.
