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

Incorrect Fee Allocation in FeeCollector:_initializeFeeTypes

josh4324

Summary

The _initializeFeeTypes function sets various fee distributions in the Fee Collector contract. However, there is a misconfiguration in the feeTypes[6] (Buy/Sell Swap Tax) and feeTypes[7] (NFT Royalty Fees), where the fee percentages do not match the intended NatSpec documentation.

Vulnerability Details

function _initializeFeeTypes() internal {
// Protocol Fees: 80% to veRAAC holders, 20% to treasury
feeTypes[0] = FeeType({
veRAACShare: 8000, // 80%
burnShare: 0,
repairShare: 0,
treasuryShare: 2000 // 20%
});
// Lending Fees: Interest income distribution
feeTypes[1] = FeeType({
veRAACShare: 7000, // 70%
burnShare: 0,
repairShare: 0,
treasuryShare: 3000 // 30%
});
// Performance Fees: 20% from yield products
feeTypes[2] = FeeType({
veRAACShare: 6000, // 60%
burnShare: 0,
repairShare: 0,
treasuryShare: 4000 // 40%
});
// Insurance Fees: 3% from NFT loans
feeTypes[3] = FeeType({
veRAACShare: 5000, // 50%
burnShare: 0,
repairShare: 2000, // 20%
treasuryShare: 3000 // 30%
});
// Mint/Redeem Fees
feeTypes[4] = FeeType({
veRAACShare: 6000, // 60%
burnShare: 0,
repairShare: 2000, // 20%
treasuryShare: 2000 // 20%
});
// Vault Fees
feeTypes[5] = FeeType({
veRAACShare: 7000, // 70%
burnShare: 0,
repairShare: 0,
treasuryShare: 3000 // 30%
});
// Buy/Sell Swap Tax (2% total)
feeTypes[6] = FeeType({
veRAACShare: 500, // 0.5%
burnShare: 500, // 0.5%
repairShare: 1000, // 1.0%
treasuryShare: 0
});
// NFT Royalty Fees (2% total)
feeTypes[7] = FeeType({
veRAACShare: 500, // 0.5%
burnShare: 0,
repairShare: 1000, // 1.0%
treasuryShare: 500 // 0.5%
});
}

Expected vs. Actual Allocation for feeTypes[6] (Buy/Sell Swap Tax)

Share Type Expected (%) Expected (BP) Actual (%) Actual (BP)
veRAACShare 0.5% 50 5.0% 500
burnShare 0.5% 50 5.0% 500
repairShare 1.0% 100 10.0% 1000
treasuryShare 0% 0 0% 0

Expected vs. Actual Allocation for feeTypes[7] (NFT Royalty Fees)

Share Type Expected (%) Expected (BP) Actual (%) Actual (BP)
veRAACShare 0.5% 50 5.0% 500
burnShare 0.0% 0 0.0% 0
repairShare 1.0% 100 10.0% 1000
treasuryShare 0.5% 50 5.0% 500

The contract will overallocate fees to veRAAC holders, the burn mechanism, and repair fund in feeTypes[6] (Buy/Sell Swap Tax).

The contract will overallocate fees to veRAAC holders, the treasuryShare, and repair fund in feeTypes[7] (NFT Royalty Fees).

Impact

Incorrect fee distributions for Buy/Sell Swap Tax in _processDistributions

Incorrect fee distributions for NFT Royalty Fees in _processDistributions

Tools Used

Manual Review

Recommendations

Fix the Incorrect Fee Assignments in _initializeFeeTypes by adjusting feeTypes[6] and feeTypes[7] to match the documented NatSpec values.

Updates

Lead Judging Commences

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

Fee shares for fee type 6 and 7 inside FeeCollector do not total up to the expected 10000 basis points, this leads to update problems, moreover they are 10x the specifications

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