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 `initializeFeeTypes` Function

pelz

Summary

The initializeFeeTypes function in the FeeCollector contract sets fee allocations in basis points (bps). However, both the Buy/Sell Swap Tax and NFT Royalty Fees exceed the intended total of 2%, violating the requirement that fee allocations must sum to 2% (200 bps).

Vulnerability Details

The contract uses a 10000 bps system, where 100 bps = 1%. Both fee configurations incorrectly sum to 2000 bps = 20% instead of the required 200 bps = 2%.

Buy/Sell Swap Tax (Incorrect)

feeTypes[6] = FeeType({
veRAACShare: 500, // 5%
burnShare: 500, // 5%
repairShare: 1000, // 10%
treasuryShare: 0
}); // Total: 2000 bps = 20% (should be 200 bps = 2%)

NFT Royalty Fees (Incorrect)

feeTypes[7] = FeeType({
veRAACShare: 500, // 5%
burnShare: 0,
repairShare: 1000, // 10%
treasuryShare: 500 // 5%
}); // Total: 2000 bps = 20% (should be 200 bps = 2%)

Impact

  • Overcharging Users: Users are charged 20% instead of the intended 2%.

  • Misallocation of Funds: Stakeholders receive incorrect fund distributions.

  • Protocol Compliance Risks: Failing to meet stated fee parameters can harm trust and regulatory adherence.

Tools Used

Manual code review and bps-to-percentage calculations.

Recommendations

Update the fee values to ensure they total 200 bps = 2%:

feeTypes[6] = FeeType({
veRAACShare: 50, // 0.5%
burnShare: 50, // 0.5%
repairShare: 100, // 1.0%
treasuryShare: 0
});
​
feeTypes[7] = FeeType({
veRAACShare: 50, // 0.5%
burnShare: 0,
repairShare: 100, // 1.0%
treasuryShare: 50 // 0.5%
});

This ensures compliance with the 2% total fee requirement.

Updates

Lead Judging Commences

inallhonesty Lead Judge 7 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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