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Regnum Aurum Acquisition Corp
HardhatReal World AssetsNFT
77,280 USDC
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Submission Details
Severity: medium
Valid

H-1: Rounding Down to Zero Risk in FeeCollector::_calculateDistribution Function

radcipher

Summary

The _calculateDistribution function in FeeCollector.sol distributes fees among different categories based on predefined share percentages. However, due to Solidity’s integer division behavior, there is a risk that small allocations will round down to zero, leading to an unintended loss of funds for certain recipients.

function _calculateDistribution(uint256 totalFees) internal view returns (uint256[4] memory shares) {
uint256 totalCollected;
​
for (uint8 i = 0; i < 8; i++) {
uint256 feeAmount = _getFeeAmountByType(i);
if (feeAmount == 0) continue;
​
FeeType memory feeType = feeTypes[i];
totalCollected += feeAmount;
uint256 weight = (feeAmount * BASIS_POINTS) / totalFees;
shares[0] += (weight * feeType.veRAACShare) / BASIS_POINTS;
shares[1] += (weight * feeType.burnShare) / BASIS_POINTS;
shares[2] += (weight * feeType.repairShare) / BASIS_POINTS;
shares[3] += (weight * feeType.treasuryShare) / BASIS_POINTS;
}
​
if (totalCollected != totalFees) revert InvalidFeeAmount();
​
shares[0] = (totalFees * shares[0]) / BASIS_POINTS;
shares[1] = (totalFees * shares[1]) / BASIS_POINTS;
shares[2] = (totalFees * shares[2]) / BASIS_POINTS;
shares[3] = (totalFees * shares[3]) / BASIS_POINTS;
​
uint256 remainder = totalFees - (shares[0] + shares[1] + shares[2] + shares[3]);
if (remainder > 0) shares[3] += remainder;
}

Vulnerability Details

The issue arises because the function calculates weighted shares using:

shares[0] += (weight * feeType.veRAACShare) / BASIS_POINTS;

  • BASIS_POINTS = 10,000, the division can result in rounding down to zero if the previous multiplication is too small.

Impact

  • Fee loss and possible fee abuse

  • Funds misallocation

Tools Used

Manual Review

Recommendations

  • Increase precision in intermediate calculations using 1e18 before applying integer division or Use a round-up function to avoid rounding issues

Updates

Lead Judging Commences

inallhonesty Lead Judge 4 months ago
Submission Judgement Published
Validated
Assigned finding tags:

FeeCollector distributes too much to treasury when fee amounts are small relative to total due to precision loss in (feeAmount * BASIS_POINTS) / totalFees

inallhonesty Lead Judge 4 months ago
Submission Judgement Published
Validated
Assigned finding tags:

FeeCollector distributes too much to treasury when fee amounts are small relative to total due to precision loss in (feeAmount * BASIS_POINTS) / totalFees

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