Manual Review

A thorough line-by-line review was conducted on the codebase to identify potential malfunctions and vulnerabilities in Nftfy.

As the project at hand implements a share-based division of an NFT with the ability to liquidate, intricate care was put into ensuring that the flow of funds and NFTs within the system conforms to the specifications and restrictions laid forth within the protocol's specification.

We validated that all state transitions of the system occur within sane criteria and that all rudimentary formulas within the system execute as expected. Although the codebase contains multiple optimizations and coding style adjustments that can be applied, no severe flaws were identified.

The re-entrancy vulnerabilities that were detected by the static analysis toolkit were benign in nature as no actively exploitable attack vector was identified, however we strongly urge the Nftfy team to remediate them.

Additionally, the system was investigated for any other commonly present attack vectors such as re-entrancy attacks, mathematical truncations, logical flaws and ERC / EIP standard inconsistencies. The documentation of the project was satisfactory to a certain extent, however, we strongly recommend the documentation of the project to be expanded at certain complex points such as the utilization of the _remnant boolean to indicate whether the wrapped NFT is transferrable and preventing liquidation by any party.

A total of 27 findings were identified over the course of the manual review of which 3 findings concerned the behaviour and security of the system. The non-security related findings, such as optimizations, are included in the separate Code Style chapter.

The finding table below enumerates all these security / behavioural findings: