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

Miscalculation of Treasury fee in `FeeCollector::_initializeFeeTypes`

maa_ly

Summary

The Fee calculation in FeeCollector:_initialiseFeeTypes for buy/sell swap tax expects 2% total fee collection. But miscalculates this due to incorrect percentage basis point representation. The feeTypes[6] claims a veRAACShare of 500/10_000 (5%), burnShare of 500/10_000 and repairShare of 1000/10_000 (10%) which accumulates to 20% instead of intended 2% by contract logic.

Vulnerability Details

The initialiseFeeTypes calculates for 20% total Fee in FeeTypes[6] and FeeTypes[7] instead of 2%

function _initializeFeeTypes() internal {
//....
// Buy/Sell Swap Tax (2% total)
feeTypes[6] = FeeType({
veRAACShare: 500, // 0.5%
burnShare: 500, // 0.5%
repairShare: 1000, // 1.0%
treasuryShare: 0
});
//....
}

The NFT Royalty Fees feeTypes[7] also allocates 5% to veRAACShare, 5% to treasuryShare and 10% to repairShare amounting to 20% instead of intended value of 2%.

poc

function test_SwapTaxDistribution_IncorrectBasisPoints() public {
// Setup user and amounts
uint256 feeAmount = 100e18;
address user = address(0x123);
raacToken.mintTo(user, feeAmount);
​
vm.startPrank(user);
raacToken.approve(address(feeCollector), feeAmount);
feeCollector.collectFee(feeAmount, 6); // Collect swap tax (type 6)
vm.stopPrank();
​
// Get initial balances
uint256 initialRepair = raacToken.balanceOf(repairFund);
uint256 initialTreasury = raacToken.balanceOf(address(treasury));
uint256 initialSupply = raacToken.totalSupply();
​
// Distribute
vm.prank(admin);
feeCollector.distributeCollectedFees();
​
// Verify incorrect allocations (10x larger than intended)
assertEq(
raacToken.balanceOf(repairFund) - initialRepair,
10e18, // Should be 1e18 if correct (1% of 100e18)
"Repair fund received 10% instead of 1%"
);
​
assertEq(
initialSupply - raacToken.totalSupply(),
5e18, // Should be 0.5e18 if correct (0.5% burn)
"Incorrect burn amount"
);
​
assertEq(
raacToken.balanceOf(address(treasury)) - initialTreasury,
8.5e18, // veRAAC share redirected to treasury (5% instead of 0.5%) + remainder (3.5e18)
"Treasury received incorrect veRAAC share"
);
}
​

Impact

Incorrect Fee Allocation

Tools Used

manual review, foundry

Recommendations

Update the veeRAACShare, burnShare and repairShare FeeCollector::_initialiseFeeTypes to the appropriate Basis Point value (50, 50, 100) respectively.

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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