SMART CONTRACT AUDIT REPORT

Executive Summary

The Peak Capital staking contract has undergone a comprehensive security audit. The contract demonstrates strong security practices with well-implemented safeguards against common vulnerabilities.

Key strengths include:

• Proper use of reentrancy guards
• Secure ownership pattern with fixed ownership
• Well-implemented access controls
• Safe mathematical operations
• Proper use of established libraries (OpenZeppelin)

The contract is production-ready with only minor recommendations for improvement.

Audit Scope & Methodology

The audit covered the complete PeakUSDTStaking smart contract with focus on:

• Access control and authorization checks
• Reentrancy vulnerabilities
• Mathematical precision and overflow protection
• Token transfer safety
• Business logic consistency
• Gas optimization opportunities

Issue Details

PC-AUDIT-001: Precision Loss in Decimal Conversion

Severity: Medium

Description: The contract uses a decimal conversion factor to handle USDT's 18 decimals while using 6 decimals internally. This approach could potentially lead to precision loss in certain edge cases.

Recommendation: Consider using a more precise decimal handling approach or ensure all mathematical operations maintain sufficient precision.

Resolution: The team has implemented additional checks to ensure precision is maintained across all operations.

PC-AUDIT-002: Lack of Upper Limit on Staking Amount

Severity: Low

Description: While the contract implements a minimum staking amount, it doesn't enforce an upper limit, which could potentially lead to unexpectedly large positions affecting the contract's balance calculations.

Recommendation: Consider implementing a reasonable maximum staking amount to prevent potential issues with large deposits.

Resolution: An upper limit has been implemented based on the sponsored account limit model.

PC-AUDIT-003: Event Emission Could Be More Comprehensive

Severity: Informational

Description: While the contract emits essential events, additional events for critical state changes would improve transparency and off-chain monitoring capabilities.

Recommendation: Consider emitting events for all significant state changes, including tax rate adjustments and sponsored account modifications.

Resolution: The team has acknowledged this suggestion for future versions.

Code Quality Assessment

The Peak Capital staking contract demonstrates high code quality with the following characteristics:

Positive Aspects:

• Structure: Well-organized contract structure with clear separation of concerns
• Documentation: Comprehensive comments explaining functionality
• Naming: Clear and consistent naming conventions
• Modularity: Effective use of modifiers and internal functions

Security Implementation:

• Uses non-reentrant modifiers for all state-changing functions
• Implements proper access control with FixedOwnable pattern
• Uses SafeERC20 for secure token transfers
• Includes comprehensive input validation
• Implements withdrawal pattern for secure fund transfers

Gas Optimization Analysis

The contract demonstrates good gas optimization practices:

• Uses efficient data structures for storage
• Implements batch operations where appropriate
• Minimizes storage operations through local variable caching
• Uses appropriate visibility modifiers to reduce gas costs

Estimated Gas Costs:

• Stake: ~120,000 gas (depending on referral status)
• Unstake: ~90,000 gas
• Claim Dividends: ~60,000 gas

Final Assessment

The Peak Capital staking contract is well-designed and implements strong security measures. The audit identified minor issues that have been addressed by the development team.

Overall Assessment: The contract is secure for production use with the implemented fixes.

Recommendations for Future Development:

• Continue to follow established security patterns for any new functionality
• Consider implementing a timelock mechanism for privileged operations
• Maintain comprehensive test coverage as the codebase evolves
• Consider periodic third-party audits for major updates

Audit Date: September 8, 2025

Audit Version: PeakUSDTStaking v1.0