Mellow Finance
Migrator

The Migrator contract, which automates moving assets from legacy MultiVaults into Mellow's new core vault system, was the focus.

report id

0682

1 Executive Summary

This document presents the results of a security review conducted by Nethermind Security for Mellow Finance Migrator contract.

The Mellow team developed the Migrator contract to facilitate the migration of existing MultiVault instances into the new core vaults. The contract automates the deployment of new vaults and securely transfers assets from legacy MultiVaults to the upgraded system.

The audit comprises 118 lines of Solidity code. The audit was performed using (a) manual analysis of the codebase, and (b) automated analysis tools.

No points of concern were identified during the review.

Audit assessment
Audit Type	Security Review
Initial Report	October 15, 2025
Final Report	October 15, 2025
Initial Commit	`a04e285fe8`
Final Commit	`a04e285fe8`
Documentation Assessment	High
Test Suite Assessment	High

Total findings: 0
Fixed: 0
Acknowledged: 0
Mitigated: 0
Unresolved: 0

Findings by severity

Critical0
High0
Medium0
Low0
Informational0
Best Practices0

2 Audited Files

#	Contract	LoC	Comments	Ratio	Blank	Total
1	`src/vaults/Migrator.sol`	118	1	0.8%	23	142
	Total	118	1	0.8%	23	142

3 Summary of Issues

No issues were identified during the audit.

4 System Overview

The migration aims to transition existing vaults from a multi-vault architecture to a new core vault architecture. This process is executed by the Migrator smart contract, which automates the transfer of assets, contract states, and administrative roles.

The migration workflow proceeds through the following steps for each MultiVault:

Vault Modules Deployment: The migrator deploys the FeeManager, RiskManager, and Oracle contracts through their respective factory contracts. Each module is initialized with parameters from the Params struct and linked to the new vault.
Core Vault Deployment: A new vault is created via the VAULT_FACTORY and initialized with its administrator, module addresses, queue assets, and operational hooks. A verifier and subvault are then deployed and connected, serving as the destination for migrated assets. After setup, the migrator renounces its elevated roles (CREATE_QUEUE_ROLE and CREATE_SUBVAULT_ROLE) to prevent further modifications.
Asset Transfer: The existing MultiVault proxy is temporarily upgraded to the Multicall contract, enabling the migrator to transfer the vault’s asset and defaultCollateral balances to the new subvault.
Finalization: Once assets are successfully transferred, the MultiVault proxy is permanently upgraded to the TokenizedShareManager implementation, linking it to the new vault. Finally, the migrator returns ownership of the ProxyAdmin to the designated proxyAdminOwner, completing the migration process.

5 Risk Rating Methodology

The risk rating methodology used by Nethermind Security follows the principles established by the OWASP Foundation. The severity of each finding is determined by two factors: Likelihood and Impact.

Likelihood measures how likely the finding is to be uncovered and exploited by an attacker. This factor will be one of the following values:

High: the issue is trivial to exploit and has no specific conditions that need to be met;
Medium: the issue is moderately complex and may have some conditions that need to be met;
Low: the issue is very complex and requires very specific conditions to be met.

When defining the likelihood of a finding, other factors are also considered. These can include but are not limited to motive, opportunity, exploit accessibility, ease of discovery, and ease of exploit.

Impact is a measure of the damage that may be caused if an attacker exploits the finding. This factor will be one of the following values:

High: the issue can cause significant damage, such as loss of funds or the protocol entering an unrecoverable state;
Medium: the issue can cause moderate damage, such as impacts that only affect a small group of users or only a particular part of the protocol;
Low: the issue can cause little to no damage, such as bugs that are easily recoverable or cause unexpected interactions that cause minor inconveniences.

When defining the impact of a finding, other factors are also considered. These can include but are not limited to data and state integrity, loss of availability, financial loss, and reputation damage. After defining the likelihood and impact of an issue, the severity is determined according to the table below.

Impact / Likelihood	Low	Medium	High
High	Medium	High	Critical
Medium	Low	Medium	High
Low	Info / Best Practices	Low	Medium
Undetermined	Undetermined	Undetermined	Undetermined

To address issues that do not fit a High, Medium or Low severity, Nethermind Security also uses three more finding severities: Informational, Best Practices, and Undetermined.

Informational findings do not pose any risk to the application, but they carry some information that the audit team intends to pass to the client formally;
Best Practice findings are used when some piece of code does not conform with smart contract development best practices;
Undetermined findings are used when we cannot predict the impact or likelihood of the issue.

6 Issues

No issues were identified during the audit.

7 Documentation Evaluation

Software documentation refers to the written or visual information that describes the functionality, architecture, design, and implementation of software. It provides a comprehensive overview of the software system and helps users, developers, and stakeholders understand how the software works, how to use it, and how to maintain it. Software documentation can take different forms, such as user manuals, system manuals, technical specifications, requirements documents, design documents, and code comments. Software documentation is critical in software development, enabling effective communication between developers, testers, users, and other stakeholders. It helps to ensure that everyone involved in the development process has a shared understanding of the software system and its functionality. Moreover, software documentation can improve software maintenance by providing a clear and complete understanding of the software system, making it easier for developers to maintain, modify, and update the software over time. Smart contracts can use various types of software documentation. Some of the most common types include:

Technical whitepaper: A technical whitepaper is a comprehensive document describing the smart contract’s design and technical details. It includes information about the purpose of the contract, its architecture, its components, and how they interact with each other;
User manual: A user manual is a document that provides information about how to use the smart contract. It includes step-by-step instructions on how to perform various tasks and explains the different features and functionalities of the contract;
Code documentation: Code documentation is a document that provides details about the code of the smart contract. It includes information about the functions, variables, and classes used in the code, as well as explanations of how they work;
API documentation: API documentation is a document that provides information about the API (Application Programming Interface) of the smart contract. It includes details about the methods, parameters, and responses that can be used to interact with the contract;
Testing documentation: Testing documentation is a document that provides information about how the smart contract was tested. It includes details about the test cases that were used, the results of the tests, and any issues that were identified during testing;
Audit documentation: Audit documentation includes reports, notes, and other materials related to the security audit of the smart contract. This type of documentation is critical in ensuring that the smart contract is secure and free from vulnerabilities.

These types of documentation are essential for smart contract development and maintenance. They help ensure that the contract is properly designed, implemented, and tested, and they provide a reference for developers who need to modify or maintain the contract in the future.

8 Remarks & Test Suite

The Mellow team provided a clear and comprehensive overview of the MultiVault migration process during the kick-off call. They also promptly addressed all questions and concerns raised by the Nethermind Security team throughout the review.

All the relevant issues raised by the AuditAgent have been incorporated into this report. The AuditAgent is an AI-powered smart contract auditing tool that analyses code, detects vulnerabilities, and provides actionable fixes. It accelerates the security analysis process, complementing human expertise with advanced AI models to deliver efficient and comprehensive smart contract audits. Available at https://app.auditagent.nethermind.io.

Test suite

1Tests passed

0Failed

The complete test output is in the full report.

General advisory to clients

As auditors, we recommend that any changes or updates made to the audited codebase undergo a re-audit or security review to address potential vulnerabilities or risks introduced by the modifications. By conducting a re-audit or security review of the modified codebase, you can significantly enhance the overall security of your system and reduce the likelihood of exploitation. However, we do not possess the authority or right to impose obligations or restrictions on our clients regarding codebase updates, modifications, or subsequent audits. Accordingly, the decision to seek a re-audit or security review lies solely with you.

Disclaimer

This report is based on the scope of materials and documentation provided by you to Nethermind in order that Nethermind could conduct the security review outlined in 1. Executive Summary and 2. Audited Files. The results set out in this report may not be complete nor inclusive of all vulnerabilities. Nethermind has provided the review and this report on an as-is, where-is, and as-available basis. You agree that your access and/or use, including but not limited to any associated services, products, protocols, platforms, content, and materials, will be at your sole risk. Blockchain technology remains under development and is subject to unknown risks and flaws. The review does not extend to the compiler layer, or any other areas beyond the programming language, or other programming aspects that could present security risks. This report does not indicate the endorsement of any particular project or team, nor guarantee its security. No third party should rely on this report in any way, including for the purpose of making any decisions to buy or sell a product, service or any other asset. To the fullest extent permitted by law, Nethermind disclaims any liability in connection with this report, its content, and any related services and products and your use thereof, including, without limitation, the implied warranties of merchantability, fitness for a particular purpose, and non-infringement. Nethermind does not warrant, endorse, guarantee, or assume responsibility for any product or service advertised or offered by a third party through the product, any open source or third-party software, code, libraries, materials, or information linked to, called by, referenced by or accessible through the report, its content, and the related services and products, any hyperlinked websites, any websites or mobile applications appearing on any advertising, and Nethermind will not be a party to or in any way be responsible for monitoring any transaction between you and any third-party providers of products or services. As with the purchase or use of a product or service through any medium or in any environment, you should use your best judgment and exercise caution where appropriate. FOR AVOIDANCE OF DOUBT, THE REPORT, ITS CONTENT, ACCESS, AND/OR USAGE THEREOF, INCLUDING ANY ASSOCIATED SERVICES OR MATERIALS, SHALL NOT BE CONSIDERED OR RELIED UPON AS ANY FORM OF FINANCIAL, INVESTMENT, TAX, LEGAL, REGULATORY, OR OTHER ADVICE.

Mellow FinanceMigrator

1

Executive Summary

2

Audited Files

3

Summary of Issues

4

System Overview

5

Risk Rating Methodology

6

Issues

7

Documentation Evaluation

8

Remarks & Test Suite

Mellow Finance
Migrator