As has been communicated by the Bancor team at the start of the audit, a precision error could lead to some losses for customers due to unexpected pricing: Price Precision Very Low for Some Tokens. This issue has been mitigated by an encoding format that increases the amount of bits that can effectively be used.

The most critical subjects covered in our audit are functional correctness, precision of arithmetic operations and front-running. Security regarding all the aforementioned subjects is high.

In summary, we find that the codebase provides a high level of security.

It is important to note that security audits are time-boxed and cannot uncover all vulnerabilities. They complement but don’t replace other vital measures to secure a project.

Bancor implements an AMM with asymmetric liquidity on which each user’s liquidity position is represented by two independent curves for buying and selling a token respectively. Trades can be matched against these positions using Bancor’s decentralized SDK, or in whichever manner the user desires.