DAML Contracts - Temple

1. Introduction

Temple engaged our security engineering team to conduct a comprehensive review of their DAML-based order-matching and asset-management system. The objective of this engagement was to evaluate correctness, consistency, and robustness across the codebase, with particular emphasis on the logic that governs order lifecycle, matching, token allocation, and multi-step orchestration workflows. The assessment focused exclusively on the DAML modules and templates provided by Temple and closely examined the architectural assumptions, execution paths, and state transitions that underpin the system.

2. Engagement Overview

The audit was performed over a 7-day period by a senior engineer with deep experience in DAML/Canton, smart contract architecture, and adversarial testing of logic-heavy state machines. The review targeted the modules most central to execution reliability:

• Order.daml

• Orchestrator.daml

• Workflow.daml

• Supporting modules: Split, Merge, Allocations, Transfer, Context, Common, and Utils

The goal was to identify deviations between intended behavior and actual enforcement, uncover nondeterministic behaviors, ensure consistency across multi-step flows, and assess resilience against malformed inputs or state inconsistencies.

3. Assessment Summary

The review focused on validating:

• Execution correctness and predictable lifecycle management

• Enforcement of constraints around deadlines, ordering, and expiration

• Determinism in maker/taker role assignment

• Safety of deep call stacks within allocation, transfer, and split/merge logic

• Soundness of context propagation and validation

• Reliability of list-based and factory-dependent operations

• Consistency of state representation in workflows involving remainder management

This included evaluating how the system handles re-locking of holdings, expiration logic, multi-order matching, order prioritization, and the complex interplay between factories and allocations that drive the orchestration layer.