Tadle

Summary

A discrepancy in decimal precision among variables used in the PreMarket::_updateReferralBonus function leads to incorrect calculation of the remainingPlatformFee. This can result in inaccurate accounting and potential financial discrepancies within the protocol.

Vulnerability Details

The PreMarket::_updateReferralBonus function utilizes variables with different decimal precisions, specifically platformFee, referrerRate, and authorityRate. The issue arises when calculating the remainingPlatformFee, as seen in the following code:

Issue Breakdown:

• platformFee: The token-based fee, which can have varying decimals depending on the chosen token.

• referrerRate and authorityRate: These rates are calculated using a fixed decimal scaler, Constants.REFERRAL_RATE_DECIMAL_SCALER.

• Problem: The difference in decimal precision among these variables leads to an incorrect calculation of the remainingPlatformFee. This discrepancy arises because the platformFee and the referral bonuses (referrerReferralBonus and authorityReferralBonus) are not consistently scaled, causing the remainingPlatformFee to be inaccurately computed.

Impact

The incorrect calculation of remainingPlatformFee due to decimal precision differences can lead to inaccurate financial accounting within the protocol, potentially resulting in overpayment or underpayment of fees, and ultimately, financial loss.

Tools Used

• Manual analysis

Recommendations

To resolve this issue, the protocol should adjust the scale of all variables to ensure they have consistent decimal precision. This can be done by standardizing the decimal precision across platformFee, referrerReferralBonus, and authorityReferralBonus before performing any calculations.