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

Performance fee is stuck/lost in the GaugeController contract

DRUGstore

Summary

A calculated 20% performance fee remains permanently stranded/lost in the protocol due to incomplete fee handling logic. While the fee is correctly computed during revenue distribution, there's no mechanism to store or withdraw these funds.

Vulnerability Details

function distributeRevenue(
GaugeType gaugeType,
uint256 amount
) external onlyRole(EMERGENCY_ADMIN) whenNotPaused {
if (amount == 0) revert InvalidAmount();
​
uint256 veRAACShare = (amount * 80) / 100; // 80% to veRAAC holders
uint256 performanceShare = (amount * 20) / 100; // 20% performance fee
//@audit this performance fee is just stuck in the contract
​
revenueShares[gaugeType] += veRAACShare;
_distributeToGauges(gaugeType, veRAACShare);
​
emit RevenueDistributed(
gaugeType,
amount,
veRAACShare,
performanceShare
);
}

The protocol calculates a 20% performance fee during revenue distribution (distributeRevenue()), but:

  1. Fee amounts aren't stored in any storage variables

  2. There is no withdrawal/claim functions for these funds

  3. Fee value only appears in event emissions

This leaves 20% of every distributed revenue permanently inaccessible.

Impact

20% of all distributed revenue becomes protocol-owned but unreachable. And if fee collection was intentional, protocol fails to implement core functionality

Tools Used

Manual review

Recommendations

Add a state variable and a mechanism to store the fees via the variable. And then create a withdrawal function (with necessary access controls):

function withdrawPerformanceFees(address recipient) external onlyRole(TRUSTED_ADMIN) {
uint256 amount = totalAccumulatedPerformanceFees;
totalAccumulatedPerformanceFees = 0;
IERC20(token).transfer(recipient, amount);
emit PerformanceFeesWithdrawn(recipient, amount);
}
Updates

Lead Judging Commences

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

GaugeController.distributeRevenue calculates 20% performance fee but never transfers or allocates it to any recipient, causing loss of funds

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

GaugeController.distributeRevenue calculates 20% performance fee but never transfers or allocates it to any recipient, causing loss of funds

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