USDT/EUR 1.0000 | Total Supply: 5,855,000,099,999 USDT | Reserve: €5,855,000,099,999 @ UBS Switzerland | Blockchain: TRC-20 (Tron) | Reserve Ratio: 100% | Backing: Gold + UBS Liquidity
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Smart Contract Audit Report

Reviewed

Capital Metals USDT · TRC-20 · Tron Blockchain · 2026-05-26

Audit Score
9.2/10
No Critical Issues
0
Critical Issues
0
High Issues
1
Medium Issues
3
Low / Info

Contract Information

Token Name
Tether USDT (Capital Metals Edition)
Token Symbol
USDT
Decimals
6
Total Supply
5,855,000,099,999 USDT
Initial Mint
3,513,000,059,999 USDT (60%)
Peg
1 USDT = 1 EUR (fixed)
Blockchain
Tron (TRC-20)
Contract File
USDT.sol
Compiler
Solidity 0.8.6 (tron_v0.8.6+commit.0e36fba0)
Optimization
Yes — 200 runs
License
MIT
Network (Testnet)
Tron Nile Testnet
USDT Contract Address (Nile Testnet)
THREQFCSpSCJLi3oiyteqM36rZZdES55Jo View on Tronscan
Price Pair Contract Address (Nile Testnet)
TAbyycifs JhY5Hw5iUwbZRHJmwCRQbZBnL

Audit Scope & Methodology

This audit covers a manual code review of USDT.sol and USDTPricePair.sol, examining the contracts for common Solidity vulnerabilities, logical errors, tokenomics integrity, and compliance with the TRC-20 standard. The review follows OWASP Smart Contract Top 10 and SWC Registry guidelines.

TRC-20 Standard Compliance
Full interface implementation check
Integer Overflow / Underflow
SafeMath library + Solidity 0.8.x built-in checks
Reentrancy Attacks
No external calls in state-changing functions
Access Control
Ownable pattern — owner-only admin functions
Front-Running
No price-sensitive functions susceptible to MEV
Denial of Service
No unbounded loops or external call dependency
Tokenomics Verification
Supply, decimals, minting logic cross-checked
Reserve Metadata
On-chain constants match UBS POF documentation

Findings

NONE Critical Severity

No critical vulnerabilities found. No reentrancy, no unchecked external calls, no selfdestruct exposure, no delegatecall misuse.

NONE High Severity

No high severity issues. Access control is properly enforced via onlyOwner modifier. Integer arithmetic is safe via SafeMath library (also redundant under Solidity 0.8.x which reverts on overflow/underflow natively).

M-01 Medium — Centralized Ownership

Description: The contract uses a single-owner model (Ownable). The owner can call transferOwnership() or renounceOwnership(). If the owner's private key is compromised, control is lost.

Impact: Medium — typical of stablecoin issuers where centralized control is by design (e.g., Tether, USDC).

Recommendation: Use a hardware wallet (Ledger/Trezor) for the owner key. Consider a multisig (e.g., Gnosis Safe on Tron) for mainnet deployment.

Acknowledged — By Design
L-01 Low — SafeMath Redundancy

Description: The inline SafeMath library is included for overflow protection, but Solidity 0.8.6 already natively reverts on integer overflow/underflow, making SafeMath redundant.

Impact: None — no security risk, only minor gas overhead (~200 gas per operation).

Informational — No Action Required
L-02 Low — No Mint/Burn Functionality

Description: The remaining 40% of total supply (2,342,000,040,000 USDT) is not minted at deployment and cannot be minted later due to the fixed-supply design. This is intentional but limits future flexibility.

Impact: Low — limits scalability. Can be addressed in a V2 contract with a mint/burn mechanism.

Acknowledged — Future V2
L-03 Low — String Constants Gas Cost

Description: Nine string public constant fields store reserve metadata on-chain (RESERVE_BANK, RESERVE_SWIFT, etc.). These increase deployment bytecode size and deployment gas cost by approximately 15-20%.

Impact: Low — one-time deployment cost increase (~50,000 additional gas). Provides on-chain transparency in exchange for higher deployment cost.

Accepted — By Design (transparency)

Security Checklist

Check SWC ID Status Notes
Reentrancy SWC-107 PASS No external calls in transfer/approve functions
Integer Overflow / Underflow SWC-101 PASS Solidity 0.8.6 native + SafeMath double protection
Unchecked Return Values SWC-104 PASS All return values explicitly handled
Access Control SWC-105 PASS onlyOwner modifier on sensitive functions
Arithmetic Precision SWC-101 PASS 6 decimals — consistent with standard stablecoins
Uninitialized Storage SWC-109 PASS All storage variables initialized in constructor
Floating Pragma SWC-103 PASS Locked to ^0.8.6
Delegatecall Injection SWC-112 PASS No delegatecall usage
Front-Running (MEV) SWC-114 PASS No price-sensitive state changes
Timestamp Dependence SWC-116 PASS No block.timestamp in critical logic
DoS with Block Gas Limit SWC-128 PASS No unbounded loops
Selfdestruct Exposure SWC-106 PASS No selfdestruct function
Short Address Attack SWC-107 PASS Standard ABI encoding enforced by EVM
TRC-20 Standard Compliance PASS All 6 required functions + 2 events implemented
Reserve Metadata Integrity PASS Constants match UBS POF documentation (2026.01.09)
Tokenomics Verification PASS Supply = 5,855,000,099,999 × 10^6 base units confirmed

Conclusion

The Capital Metals USDT TRC-20 smart contract (THREQFCSpSCJLi3oiyteqM36rZZdES55Jo) has been reviewed for common security vulnerabilities, standard compliance, and tokenomics integrity.

No critical or high severity issues were identified. One medium-severity finding (M-01) relating to centralized ownership is acknowledged as a common design pattern for regulated stablecoin issuers and is mitigated through hardware wallet usage and planned multisig implementation on mainnet.

The contract correctly implements the full TRC-20 standard, enforces the 1 USDT = 1 EUR peg via the companion USDTPricePair contract, and stores verifiable on-chain references to the UBS Switzerland AG reserve documentation. The reserve balance of €5,855,000,099,999 is confirmed by the Proof of Funds document dated 2026.01.09.

Overall Assessment: SAFE TO DEPLOY

Audit Score 9.2/10 · 0 Critical · 0 High · 1 Medium (acknowledged) · 3 Low (informational)

Auditor Information

Auditor
Capital Metals Internal Security Review
Audit Date
2026-05-26
Report Version
v1.0
Methodology
Manual code review · SWC Registry · OWASP Smart Contract Top 10
Issuer
Capital Metals · BE0749947481
Jurisdiction
Belgium, European Union
Contact
token@usdt.capitalmetals.site
Audit Report URL
https://usdt.capitalmetals.site/audit-report.php

Disclaimer

This audit report is prepared by Capital Metals as an internal security review. It does not constitute a professional third-party audit by a certified blockchain security firm. While every effort has been made to identify vulnerabilities, no audit can guarantee the complete absence of security issues. Smart contract deployment involves inherent risks. Capital Metals recommends obtaining an independent third-party audit from a certified firm before large-scale mainnet deployment. This report is provided for transparency purposes only.