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Fractalized Smart Contract Audit

5 min read

Partnership Overview

Client

Fractalized

Platform

Ethereum / EVM

Service

Smart Contract Security Audit

Timeline

September 2025

About Fractalized

Fractalized is building a next-generation RWA (Real World Asset) tokenization platform, designed to enable fractional ownership of real-world assets through blockchain technology. Their platform leverages smart contracts to provide secure, transparent, and efficient fractional ownership mechanisms for assets ranging from real estate to collectibles.

Security Requirements

As Fractalized prepared to launch their tokenization platform, ensuring the security and reliability of their smart contract infrastructure was paramount. The team engaged FailSafe to conduct a comprehensive security audit focused on their smart contracts responsible for asset tokenization, fractional ownership distribution, and governance.

The audit scope encompassed critical security considerations including token minting and burning logic, ownership transfer mechanisms, access controls, upgrade patterns, and compliance with RWA-specific regulatory requirements.

Audit Methodology

FailSafe's security team conducted a multi-layered audit approach tailored to RWA tokenization requirements and Fractalized's specific architecture:

Threat Modeling

Identified critical assets, enumerated potential threats, and assessed vulnerabilities specific to RWA tokenization and fractional ownership models.

Manual Code Review

Line-by-line analysis of business logic, access controls, token mechanics, and EVM-specific security considerations.

Architecture Analysis

Evaluated trust assumptions, upgrade patterns, and the interaction between various smart contract components.

Edge Case Testing

Rigorous testing for extreme inputs, operational scenarios, and potential attack vectors including reentrancy, overflow/underflow, and access control bypasses.

Confidential Partnership

In accordance with Fractalized's security and business requirements, the detailed findings and specific vulnerabilities identified during this audit remain confidential. Our partnership focused on addressing critical security considerations across multiple severity levels, with the development team implementing fixes and documented acknowledgments for all identified issues.

The audit process included comprehensive validation of fixes, multiple rounds of review, and collaborative remediation support to ensure the platform met production security standards.

Partnership Impact

Through close collaboration with Fractalized's development team, FailSafe provided comprehensive security guidance that strengthened the platform's security posture. The engagement covered:

  • Security architecture review and recommendations for RWA tokenization smart contract design patterns
  • Identification and remediation of security vulnerabilities in fractional ownership and token distribution logic
  • Documentation improvements and operational security guidance
  • Best practices for RWA tokenization security and regulatory compliance

Interested in Learning More?

If you're building RWA tokenization solutions or need comprehensive smart contract security services, our team can share more about our approach and how we've helped projects like Fractalized secure their platforms.

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