Chapter 6
The security gate
The gate is separate from the score: a three-way verdict on the contract itself. It is what stands between a high score and the Strong Buy lane, and it is the single rule that removes most of what a naive volume scanner would promote.
6.1The three verdicts
| Verdict | What it means |
|---|---|
| fail | Something about the contract can take your money: it cannot be sold, it can block your wallet, the sell tax is punitive, or the liquidity is not locked and can be pulled. |
| warn | Nothing disqualifying, but not clean either — deployer authority still live, a tax worth knowing about, an unverified contract, a concentrated top ten, or liquidity only partly locked. |
| pass | None of the above. Every check the gate runs came back clean. |
| unknown | The provider has not answered for this token yet. Nothing has been ruled out. |
Note how demanding pass is — it requires every check to be clean at once. A token that trips any one of them is capped at Watch no matter how good its trading looks, which is why the Strong Buy lane is usually the smallest one on the board.
6.2What each check is actually asking
LP lock
The share of the liquidity pool that is locked in a contract or burned outright, printed on the LP tile. Unlocked liquidity means whoever holds it can withdraw the pool and leave your tokens unsellable — the classic rug. More locked is better; the gate wants effectively all of it, and treats a largely unlocked pool as disqualifying.
Authority
Whether the deployer gave up mint and freeze authority. A live mint authority means supply can be printed against you; a live freeze authority means your wallet can be stopped from selling. Renouncing both is the check. A honeypot, a blacklist capability or an outright cannot-sell result is an immediate fail.
Taxes
The buy and sell percentages written into the contract. A small tax is a warning worth pricing in; a large sell-side tax is a fail, because at that level the contract is taking a bigger cut than most trades make.
Holder concentration
The share of supply held by the ten largest wallets, shown on the Holders tile as top10 38%. The higher it climbs the fewer people it takes to end the chart at will.
Open source
Whether the contract's source is published and verified. An unverified contract is not automatically malicious, but nobody — including this scanner — can tell you what it does.
6.3Pending, and why it happens
The verdict comes from an external provider, and not every token can be verified on every scan. Pinned tokens go first, then the strongest cards on the board; everything else keeps the verdict it already had, or stays unknown.
A token can therefore be fully scored on market data and still be unverified — which is exactly what PENDING GMGN in the Watch lane means. It is the gate being honest about what it does not know yet, not a soft pass.
The GMGN verified filter on the toolbar keeps only full passes, which is the cleanest way to see how few tokens actually clear this bar on a given day. Provider health is reported in the settings drawer — see Chapter 4.
AlgoLens user manualChapter 6 · The security gate