Security audit & legal opinion
Security is put very high on the list of standards to meet.
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Security is put very high on the list of standards to meet.
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This report has been prepared by certik to discover issues and vulnerabilities in the source code of the privateum project as well as any contract dependencies that were not part of an officially recognizedlibrary. A comprehensive examination has been performed, utilizing formal verification and manual review techniques.
The auditing process pays special attention to the following considerations:
Testing the smart contracts against both common and uncommon attack vec
Assessing the codebase to ensure compliance with current best practices and industry standards.
Ensuring contract logic meets the specifications and intentions of the client.
Cross referencing contract structure and implementation against similar smart contracts producedby industry leaders.
Thorough line-by-line manual review of the entire codebase by industry experts.
Read full report here.
The PVM Token definitively satisfies the first prong of the Howey Test, and no one may reasonably conclude that the courts will determine otherwise. The second prong is more difficult and debatable. However, our analysis has concluded that this element is not satisfied under both theories applied by the federal courts. The third prong is more likely not to be satisfied. The fourth prongs of the Howey Test is not satisfied. To conclude, since not all the elements of the Howey Test are met, in our opinion, the PVM Token does not meet the legal definition of a security under United States law. Nevertheless, it should be noted that the Howey Test has not yet been directly applied by courts to any utility tokens before. Only a U.S. court may definitively determine whether the PVM Token is a security, based in its opinion and regulatory enforcement.