What Smart Contract Audit Coverage Really Means
In crypto, audit coverage is a lens on risk, governance, and the alignment between promises and code.
- Understanding Audit Coverage Percentages
- Why 100% Coverage Isn’t Always Necessary
- How to Read Audit Reports for Real Risk
- Practical Checklist for Investors
Understanding Audit Coverage Percentages
Audit coverage reports the portion of the contract code analyzed by an audit. It reflects coverage of code paths and functions, not a guaranteed absence of bugs. A figure like 78% signals that roughly a fifth of the code paths were not explicitly reviewed, which matters when the unexamined parts include high‑risk logic.
100% coverage is rarely achievable in practice. Upgradeable patterns, multi‑contract ecosystems, and external dependencies introduce blind spots. The risk is a hidden back door—partial reviews can miss vulnerabilities even in robust modules. For practical guidance, see OpenZeppelin's security guidelines on evaluating coverage and risk.
Why 100% Coverage Isn’t Always Necessary
Some code areas pose lower risk, or the cost of exhaustive review outweighs the marginal benefit. Audits often emphasize core logic, access controls, and upgrade mechanisms, while peripheral utilities may receive lighter attention. The goal is to understand risk concentration rather than chase an unattainable cifra.
As noted in the broader discourse on reliability—audit reliability remains context-dependent. You should also consider governance structure concerns; see Quantstamp's framing of risk communication.
How to Read Audit Reports for Real Risk
Look for the report's methodology, scope, and limitations. Identify which contracts were tested, what tests were performed (manual review, automated analysis, fuzzing), and whether formal verification was used. For practical benchmarks, consult OpenZeppelin security and Ethereum security resources.
Practical Checklist for Investors
- Scope clarity: which contracts and libraries are included?
- Methodology transparency: type and depth of tests used
- Limitations acknowledged: what remains unreviewed
- Upgradeability and governance: are there mechanisms that could be exploited?
