Liquidity Management
Gamma
DeFiFoundry
50,000 USDC
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Submission Details
Severity: low
Invalid

Governance Fee Collection Event Misplacement

bhorprakash

Description

The GovernanceFeeCollected event is emitted outside the if (fee > 0) block, leading to a scenario where the event is emitted even if no fee was collected. This could mislead observers into thinking a fee was always collected.

function _transferToken(uint256 depositId, uint256 amount) internal {
uint256 fee;
if (amount > depositInfo[depositId].amount) {
fee = (amount - depositInfo[depositId].amount) * governanceFee / BASIS_POINTS_DIVISOR;
if (fee > 0) {
collateralToken.safeTransfer(treasury, fee);
}
}
try collateralToken.transfer(depositInfo[depositId].recipient, amount - fee) {}
catch {
collateralToken.transfer(treasury, amount - fee);
emit TokenTranferFailed(depositInfo[depositId].recipient, amount - fee);
}
totalDepositAmount -= depositInfo[depositId].amount;
@=> emit GovernanceFeeCollected(address(collateralToken), fee);
}

Impact

False or misleading event logs, making it harder to track governance fee collections accurately.
Potential confusion for off-chain monitoring systems relying on event emissions.
Recommendation:
Move the emit GovernanceFeeCollected statement inside the if (fee > 0) block to ensure the event is only emitted when a fee is actually collected.

​
function _transferToken(uint256 depositId, uint256 amount) internal {
uint256 fee;
if (amount > depositInfo[depositId].amount) {
fee = (amount - depositInfo[depositId].amount) * governanceFee / BASIS_POINTS_DIVISOR;
if (fee > 0) {
collateralToken.safeTransfer(treasury, fee);
+ emit GovernanceFeeCollected(address(collateralToken), fee);
}
}
try collateralToken.transfer(depositInfo[depositId].recipient, amount - fee) {}
catch {
collateralToken.transfer(treasury, amount - fee);
emit TokenTranferFailed(depositInfo[depositId].recipient, amount - fee);
}
totalDepositAmount -= depositInfo[depositId].amount;
- emit GovernanceFeeCollected(address(collateralToken), fee);
}

This change ensures event emissions are accurate and aligned with actual governance fee transfers.

Updates

Lead Judging Commences

n0kto Lead Judge 8 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

Informational or Gas

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point.

n0kto Lead Judge 8 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

Informational or Gas

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point.

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