Term Finance
April 2023
Sigma Prime reviewed Term Finance contracts around auction lifecycle, collateral movement, liquidation behavior, and settlement correctness. The case study shows how DeFi audit scope changes when fund flows depend on timed auctions, cancellations, unlock paths, and stressed liquidation states.
Executive summary
Sigma Prime reviewed Term Finance contracts with a primary focus on auction lifecycle correctness, collateral accounting, and liquidation behavior. The assessment identified a significant concentration of critical/high findings in safety-critical fund-flow logic, plus additional hardening recommendations. The report provides a high-priority remediation sequence to improve integrity of settlement and liquidation operations.
By the numbers
Total findings
27
High + critical findings
15
What we reviewed
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Auction lifecycle
Bid/offer flow, unlock/cancel behavior, and settlement handling across key transitions.
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Collateral and liquidation paths
Fund movement correctness and liquidation safety in stressed conditions.
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Protocol invariants
Consistency of accounting assumptions under edge-case and adversarial inputs.
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