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+# Contracts README
+
+This package contains the Compact smart contract source files, compiled artifacts, witness implementations, and test infrastructure for OpenZeppelin Contracts for Compact.
+
+## Directory Structure
+
+```
+contracts/
+├── src/                    # Source files
+│   ├── access/             # Access control contracts
+│   ├── security/           # Security utility contracts
+│   ├── token/              # Token standard contracts
+│   ├── utils/              # General utility contracts
+│   ├── archive/            # Archived/deprecated contracts
+│   └── test-utils/         # Shared test helpers
+├── artifacts/              # Compiled contract outputs (generated)
+└── dist/                   # Compiled TypeScript witness outputs (generated)
+```
+
+## src/
+
+The `src/` directory is organized by module category. Each module follows the same internal layout:
+
+```
+<module>/
+├── <Contract>.compact      # Contract source
+├── witnesses/              # TypeScript witness implementations
+└── test/
+    ├── <Contract>.test.ts  # Test suite
+    ├── mocks/              # Mock contracts (test-only — see warning below)
+    └── simulators/         # Simulator helpers for testing
+```
+
+### src/access/
+
+Access control primitives for restricting who can call contract circuits.
+
+| File | Description |
+|------|-------------|
+| `AccessControl.compact` | Role-based access control |
+| `Ownable.compact` | Single-owner access control |
+| `ShieldedAccessControl.compact` | Role-based access control with shielded (private) role assignments |
+| `ZOwnablePK.compact` | Single-owner access control with shielded ownership |
+
+### src/security/
+
+Contracts that add common security patterns on top of other modules.
+
+| File | Description |
+|------|-------------|
+| `Initializable.compact` | One-time initialization mechanism |
+| `Pausable.compact` | Emergency pause/unpause mechanism |
+
+### src/token/
+
+Implementations of standard token interfaces.
+
+| File | Description |
+|------|-------------|
+| `FungibleToken.compact` | ERC-20-style fungible token |
+| `NonFungibleToken.compact` | ERC-721-style non-fungible token |
+| `MultiToken.compact` | ERC-1155-style multi-token |
+
+### src/utils/
+
+Low-level utilities shared across modules.
+
+| File | Description |
+|------|-------------|
+| `Utils.compact` | Common helper circuits |
+
+### src/archive/
+
+Contracts that are no longer actively maintained. Do not use in new projects.
+
+### src/test-utils/
+
+Shared TypeScript helpers used across test suites (e.g. address utilities). Not part of the public API.
+
+---
+
+## > ⚠️ Mock Contracts Are For Testing Only
+
+Each module's `test/mocks/` directory contains `Mock*.compact` files (e.g. `MockFungibleToken.compact`, `MockOwnable.compact`, `MockAccessControl.compact`).
+
+**These contracts exist solely to expose internal state and circuits for testing purposes. They must never be used in production.**
+
+Mock contracts typically:
+- Expose internal or protected circuits publicly for direct testing
+- Skip access control or safety checks to isolate specific behaviors
+- Introduce additional state that makes testing easier but is unsafe in deployment
+
+**Using a Mock contract in production would undermine the security guarantees the corresponding production contract is designed to provide.**