Starknet Perpetual audit details

• Total Prize Pool: $150,000 in USDC
  • HM awards: up to $140,000 in USDC
    • If no valid Highs are found, the HM pool is $40,000 in USDC
    • If no valid Highs or Mediums are found, the HM pool is $0
  • QA awards: $1,000 in USDC
  • Judge awards: $5,000 in USDC
  • Validator awards: $3,500 in USDC
  • Scout awards: $500 in USDC
• Read our guidelines for more details
• Starts March 19, 2025 20:00 UTC
• Ends April 9, 2025 20:00 UTC

ℹ️ The sponsor team will have access to audit submissions during the submission phase.

Note re: risk level upgrades/downgrades

Two important notes about judging phase risk adjustments:

• High- or Medium-risk submissions downgraded to Low-risk (QA) will be ineligible for awards.
• Upgrading a Low-risk finding from a QA report to a Medium- or High-risk finding is not supported.

As such, wardens are encouraged to select the appropriate risk level carefully during the submission phase.

Automated Findings / Publicly Known Issues

The 4naly3er report is inapplicable for this contest.

Fee Ratio Against Quote

During a trade, the code will evaluate the fulfillment of the base token but the fee ratio will be evaluated against the quote token. This approach is intentional as the user should be allowed to pay a higher fee than the order they signed as a more lucrative matching order might be identified that will have a higher fee as well as a higher profit for the user, resulting in a net-positive result for them.

Implicit Issues

Any issue/behavior that is marked as acknowledged via in-line documentation should be considered out-of-scope for this contest.

Overview

Starknet Perpetuals enables running a decentralized, perpetuals exchange that provides its users with self-custody, and settles transactions in a trustless manner.

A position includes a collateral asset and one or more synthetic assets. Unlike spot trading, a trader can hold a leveraged position, which enables trading in asset amounts that are greater than the amount of funds actually invested.

Margin

When you create a Starknet-Perpetuals-powered exchange, you define the requirements for the initial margin and the maintenance margin.

The maintenance margin determines the amount of leverage that Starknet Perpetuals enforces whenever executing a trade or liquidation transaction. When a position’s value falls below the maintenance margin, it is not well-leveraged. The maintenance margin is similar to total risk.

The application is responsible for enforcing the initial margin before sending a transaction to the Starknet Perpetuals gateway. Starknet Perpetuals enforces the maintenance margin.

Total Value & Total Risk

The total value of a position is the sum of the value of the position’s collateral and synthetic assets, expressed in the collateral currency.

The total risk is a measurement that includes the total value of all synthetic assets in a position, and also takes into account a predetermined risk factor for each synthetic asset. As the risk factor increases, so does the total risk.

You, the operator, determine the risk factor according to your business logic, and include it in the general configuration for your Starknet Perpetuals instance as risk_factor, which is a tiered list that varies depending on the amount of a given synthetic asset. It is equivalent to the term maintenance margin rate (MMR), where MMR is expressed as a percentage. For example, if the MMR is 0.7%, then risk_factor = 0.007.

Total risk is related to the maintenance margin as follows:

• When a position’s total value is equal to its total risk, it is exactly at the maintenance margin.
• When a position’s total value is less than its total risk, it is below the maintenance margin.
• When a position’s total value is greater than its total risk, it is above the maintenance margin.

Links

• Previous audits: N/A
• Documentation: https://github.com/starkware-libs/starknet-perpetual/blob/main/docs/spec.md
• Website: https://www.starknet.io/
• X/Twitter: https://x.com/starknet
• Discord: https://discord.com/invite/starknet-community

---

Scope

Any files that are not listed explicitly in-scope should be considered out-of-scope.

Files in scope

Files out of scope

Scoping Q & A

ERC20 token behaviors in scope

External integrations (e.g., Uniswap) behavior in scope:

EIP compliance checklist

Any contracts that mention SNIP-12 should comply with the relevant standard to the extent it is implemented in each cairo file.

Additional context

Main Invariants

Only Operator Can Call the Following Flows:

• process_deposit
• withdraw
• transfer
• trade
• liquidate
• deleverage
• set_public_key
• set_owner_account
• price_tick
• funding_tick

Only App Governor Can Call the Following Flows:

• add_oracle_to_asset
• add_synthetic_asset
• deactivate_synthetic
• remove_oracle_from_asset
• update_synthetic_quorum

Attack ideas (where to focus for bugs)

Potential ways that rounding errors can be capitalized to harm users, result in fund loss, or otherwise have a financial impact.

All trusted roles in the protocol

Describe any novel or unique curve logic or mathematical models implemented in the contracts:

N/A

Running tests

curl –proto '=https' –tlsv1.2 -sSf https://sh.starkup.dev | sh
scarb build

To make tests:

scarb test

To make coverage:

curl -L https://raw.githubusercontent.com/software-mansion/cairo-coverage/main/scripts/install.sh | sh
snforge test --coverage

Code Coverage

Miscellaneous

Employees of Starknet/Starkware and employees' family members are ineligible to participate in this audit.

Code4rena's rules cannot be overridden by the contents of this README. In case of doubt, please check with C4 staff.