Why Audits Might Not Always Be Reliable

At DEXX, we work with three auditing firms (Honeypot.is, Go Plus, and Quick Intel) that provide initial security assessments and risk warnings about smart contracts. However, these results aren’t always guaranteed to be accurate for several reasons:

1. Complex Smart Contracts Smart contract code can be really complex, and automated tools may struggle to understand intricate logic or dynamic behaviors during analysis. For example, some contracts might use unique programming techniques to change how they behave, making it hard for auditors to accurately predict what will happen, especially during execution.

2. New Attack Methods and Vulnerabilities The blockchain and cryptocurrency landscape is constantly evolving, leading to new attack methods and vulnerabilities popping up all the time. Auditing tools might not always keep up with the latest security threats, especially those that aren’t widely recognized. This can make them less effective at spotting certain specific issues.

3. Evasion Tactics for Auditing Savvy developers may intentionally write code to evade automated auditing tools, making it difficult for them to detect potential malicious activities. For instance, they can hide or delay harmful actions to mislead auditors, leading to audit results that seem safe, even though real-world operations might still involve risks.

4. Upgradable Smart Contracts Some contracts allow their logic to be changed after deployment through administrative or governance processes. This means that even if a contract passes an audit, future updates could introduce new vulnerabilities or malicious actions. Automated tools typically only analyze the current version of the code and can’t predict future modifications.

5. Deceptive Honey Pot Mechanisms A honey pot is a contract designed to trick users into locking up their funds after making a trade. Developers can use complex code or special logic to make these mechanisms appear normal under typical conditions, only to activate under specific interactions. Auditing tools might miss these hidden triggers, leading to incorrect assessments.

6. Time Locks or Delayed Actions Some malicious contracts use time locks or delays to only show harmful behavior after certain conditions are met. These tactics can be challenging for static analysis tools to detect.

Because of this, it’s not unusual for a token’s risk alert to change from green to red in the blink of an eye. Additionally, problems like delayed honey pot mechanisms are something no auditing firm can currently detect. DEXX don’t validate or take responsibility for the quality of 3rd-party auditing companies. Always make sure to do your research before buying any token!