Manual Review

A thorough line-by-line review was conducted on the codebase to identify potential malfunctions and vulnerabilities in the tokenized vaults of Morpho Labs.

As the project at hand implements EIP-4626 based tokenized vaults, intricate care was put into ensuring that the flow of funds 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. We pinpointed certain casting and operational vulnerabilities within the system which could have had moderate ramifications to its overall operation, however, they were conveyed ahead of time to the Morpho Labs team to be promptly remediated.

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 the extent it need be.

A total of 15 findings were identified over the course of the manual review of which 11 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:

ID	Severity	Addressed	Title
SHV-01M			Potential Points of Concern
SRC-01M			Potential Points of Concern
SVL-01M			Potential Point of Concern
SVT-01M			Potential Points of Concern
SVT-02M			Unsafe Casting Operations
SVL-02M			Unsafe Casting Operations
SVU-01M			Potential Points of Concern
SRO-01M			Potential Points of Concern
SVU-02M			Inexistent Slippage Protection
SRO-02M			Inexistent Slippage Protection
SRO-03M			Normalized Mantissa Inexistent