Precision loss in _calculateInterest function
Summary
This report addresses a precision loss vulnerability found in the function _calculateInterest within the smart contract code. The function is responsible for calculating interest and fees for a loan, but the calculations performed within the function can lead to a loss of precision.
Vulnerability Details
When calculating the interest, the result of (l.interestRate * l.debt * timeElapsed) is divided by 10000 and then again by 365 days:
Additionally, there is a division before multiplication. Fees is the result of (lenderFee * interest) divided by 10000. This can cause additional precision loss.
Impact
The precision loss vulnerability in the _calculateInterest function can have significant implications for loan interest and fee calculations such as inaccurate interest and fee calculation
Tools Used
Manual review
Recommendations
Consider changing formula in the following way:
Prize pool breakdown
Live
The contest is live. Earn rewards by submitting a finding.
Appeals
This is your time to appeal against judgements on your submissions.
Appeals Review
Appeals are being carefully reviewed by our judges.