Smart Contract Logic Auditing

Smart contract logic auditing is the systematic review of the code governing a protocol to ensure it functions exactly as intended. Unlike security audits that look for exploits, logic audits focus on the economic and mathematical soundness of the protocol.

This includes checking the accuracy of derivative pricing formulas, the fairness of distribution mechanisms, and the correctness of governance voting logic. If the underlying logic is flawed, the protocol can be manipulated even without a technical exploit.

It requires a deep understanding of financial engineering and game theory. This process ensures that the protocol's rules create the desired economic outcomes.