# The scope of what we want to be scrutinised by Immunefi

### **1. Perpetual Exchange: Spark Perps**
docs: https://docs.sprk.fi/
- **Funding Rate**: Investigate how the funding rate is calculated and its impact on traders' positions over time.
- **Matching Engine**: Examine the efficiency and fairness of the order matching process.
- **Multi-Collateral System**: Assess the flexibility and risk management of allowing multiple types of collateral.
- **Profit and Loss (PnL) Calculation**: Evaluate the accuracy and transparency of the PnL calculation process.
- **Liquidation Process**: Scrutinize the criteria and mechanism for liquidating positions, ensuring it's fair and timely.
- **Oracle Functionality and Price Manipulation**: Investigate the reliability of the oracle system and its vulnerability to manipulation.
- **Insurance Fund Management**: Analyze how the insurance fund is managed to cover insufficiencies during trader position liquidations.
- **Risk Management Measures**: Review the implemented risk management measures to protect users and the system as a whole.

### **2. Lending Protocol: Spark Lend (ex. SwayLend)**
docs: https://docs.swaylend.com/
- **Interest Rate Calculation**: Understand how interest rates for borrowers and lenders are determined by the protocol.
- **Collateral Mechanisms**: Evaluate the collateral requirements and their effectiveness in safeguarding lenders' funds.
- **Liquidation Process**: Assess the process and thresholds set for the liquidation of collateral if the asset value falls below a certain level.
- **Mechanism for Buying Liquidated Positions**: Inspect the mechanism for auctioning or buying liquidated collateral and its fairness to all parties involved.

### **3. Onchain Central Limit Order Book: Spark Book**
docs: https://docs.sprk.fi/build-on-spark/sdk-docs
- **Order Matching Mechanism**: Examine the efficiency and security of the order matching process.
- **Protection Against Market Manipulation**: Evaluate the measures in place to prevent manipulative practices like wash trading and front running.
- **Performance and Scalability**: Analyze how the protocol maintains fast and efficient order execution as trading volume scales.
- **Operation Speed**: Investigate the speed at which orders are processed and matched.
- **Stability**: Review the system's resilience against high volatility and large volumes of orders.
- **Matching Mechanism Efficiency**: Assess the effectiveness of the matching mechanism in facilitating fair and timely trades.

Each of these points addresses crucial aspects of system integrity, user protection, and operational efficiency that auditors should closely examine to ensure the platform's reliability and trustworthiness.