Summary

The purrgeBadPawsition function involves calculations for collateral distribution and rewards that may not handle precision correctly. This can lead to inaccuracies in the calculation of redemption percentages and reward amounts due to improper precision handling.

Vulnerability Details

The function calculates redeemPercent, toDistribute, and extraReward using potentially misaligned precision handling. Incorrect precision or rounding errors may affect the distribution of collateral and rewards.

Impact

• Calculation Errors: Users may receive incorrect amounts of collateral or rewards due to improper precision handling.

• Financial Discrepancies: Inaccurate calculations affect user rewards and collateral distributions, potentially leading to financial inconsistencies.

Tools Used

Manual Review

Recommendations

Review and adjust precision handling and arithmetic operations used in the calculations. Ensure that scaling factors and precision align with expected values to ensure accurate collateral distribution and reward calculations.