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Smart contract pre-procurement security checklist

40 items you can use in an internal review before a formal audit.

Available in Japanese only: this checklist is currently published in Japanese only. The overview below is in English, but the full 40-item checklist with commentary has not yet been translated.

This resource brings together, in a 40-item checklist, the security points a company should check internally before placing a smart contract development order, across four areas: design, tokenomics, infrastructure/operations, and audit/legal. It works backward from past hacking incidents in DeFi, NFTs, and RWA.

Each item includes commentary on background, what to check, and recommended countermeasures, so that even a point that is hard to judge from the title alone becomes understandable.

How this resource is organized

  • Section 2: Design-layer checks (10 items)
  • Section 3: Tokenomics-design checks (10 items)
  • Section 4: Infrastructure & operations checks (10 items)
  • Section 5: Audit & legal checks (10 items)

Section 2: Design-layer checks (10 items)

Points to confirm at the smart contract design stage — upgrade approach, access control, and function visibility, focused on the parts that are hard to fix once deployed.

  • The upgrade approach (Proxy / Diamond / Immutable) has a stated rationale
  • Access control (onlyOwner / role-based) follows the principle of least privilege
  • Function visibility (public / external / internal) is kept to the minimum needed
  • Reentrancy protection (the checks-effects-interactions pattern / ReentrancyGuard) is built in
  • Gas limits and the possibility of unbounded loops have been ruled out
  • Overflow protection for numeric calculations (SafeMath / Solidity 0.8+) is in place
  • Events are emitted whenever an important state change occurs
  • The storage layout avoids slot collisions across upgrades
  • Meta-transaction replay protection (nonce / chainId) is built in
  • Return values from external contract calls are always checked

Section 3: Tokenomics-design checks (10 items)

Points around token economics, liquidity, oracle references, and governance — the structures attackers exploit for economic gain.

  • Oracle price references use multiple oracles (e.g. Chainlink)
  • A TWAP (time-weighted average price) is built in for manipulation resistance
  • Collateral ratios are set conservatively, accounting for flash-loan resistance
  • A minimum liquidity floor (minimum pool TVL) is set
  • Governance proposals go through a timelock rather than executing immediately
  • The design prevents instant voting power gained via a flash-loaned governance token
  • The incentive design (burn, staking, distribution) is internally consistent
  • Economic-attack simulation has been carried out, or is planned
  • Emergency-pause authority and its activation conditions are clearly defined
  • The fee model and token distribution are transparent

Section 4: Infrastructure & operations checks (10 items)

Points around key management, multi-sig, the frontend, and monitoring — the operational foundation outside the contract itself.

  • The multi-sig threshold (M of N) is set conservatively
  • An HSM or hardware wallet is used
  • Private-key custody is geographically and organizationally distributed
  • Access to the frontend infrastructure (DNS / CDN / Cloudflare) is minimized
  • Environment variables and API keys are securely protected
  • Deployment authority is limited to the people who need it
  • A logging and monitoring platform is running, with anomaly detection
  • An incident-response runbook is in place (emergency stop, asset protection, disclosure)
  • Backup and recovery procedures are documented and tested regularly
  • The upgrade procedure is tested, with a staged-deployment mechanism

Points around third-party audits, bounty programs, and regulatory/legal compliance.

  • Audit-firm selection criteria (track record, specialty, cost) are clear
  • Critical vulnerabilities are planned to be confirmed by at least two audit firms
  • A bug-bounty program (e.g. via Immunefi) has an operating policy in place
  • A response process for critical audit findings is defined in advance
  • A relationship with a law firm is in place
  • Regulatory points (Financial Instruments and Exchange Act, Payment Services Act) have been worked through
  • KYC/AML arrangements (where needed) have been designed
  • The terms of service and privacy policy have had legal review
  • Insurance protocols (e.g. Nexus Mutual) have been considered
  • A disclosure policy (vulnerability disclosure / emergency disclosure) has been decided

How to use the scoring sheet

32+ items marked Yes
You are ready to engage an audit firm and place an order — proceed to a formal audit request.
24–31 items marked Yes
The main issues are covered — organize the remaining unconfirmed items internally before considering an order.
Fewer than 24 items marked Yes
Design-stage organization is still incomplete — internal discussion or consulting to structure the issues is recommended.

Design lessons from past incidents

Each item in this checklist is worked backward from a real hacking incident. Representative cases and the checklist items they map to:

IncidentAttack vector
Ronin Bridge (2022, ~$600M)Private-key leak, a flawed multi-sig threshold design
Wormhole Bridge (2022, ~$320M)A flaw in signature-verification logic
BadgerDAO (2021, ~$120M)Frontend tampering
Euler Finance (2023, ~$200M)A flash loan combined with a logic flaw
Mango Markets (2022, ~$110M)Oracle price manipulation
Beanstalk Farms (2022, ~$180M)Governance combined with a flash loan
Nomad Bridge (2022, ~$190M)An initialization flaw during an upgrade

Talk to Netsujo

This checklist can be used entirely on your own, or with Netsujo's pre-procurement internal review support. If many items are "Not yet confirmed" and you are not sure where to start, a free 30-minute first consultation can help work through the issues together. Our standard scope of support includes:

  • Internal interviews and structuring for each checklist item (consulting)
  • Smart contract design review
  • Coordination with an external audit firm (pre-audit preparation, interpreting findings)
  • Support responding to critical audit findings
  • Ongoing quarterly review during operation