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

Incorrect Basis Points Lead to Unallocated Funds

kobbyeugene

Summary

Fee Types 6 (Swap Tax) and 7 (NFT Royalty) use basis point values that sum to 2,000 bps (20%) instead of the required 10,000 bps (100%), leaving 80% of fees unassigned.

Vulnerability Details

In the code below, you can see that the developer intended to do 2500 + 2500 + 5000 = 10,000 which will be 100% of the 2% fee collected. The error in the code is 500 + 500 + 1000 = 2000which is 20% of the 2% leaving 80% of the 2% fee unallocated.

  • Real-World Scenario:

    • A decentralized exchange (DEX) processes $10M in daily swaps

    • Intended Allocation: 2% tax = $200,000/day

    • Actual Allocation: Only 20% of 200,000(200,000(40,000) is distributed.

    • Result: 160,000/day is lost or stuck in the contract

/**
* @dev Initializes default fee types according to protocol rules
*/
function _initializeFeeTypes() internal {
// Protocol Fees: 80% to veRAAC holders, 20% to treasury
// 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%
});
}

Impact

From the details above, we can see that the protocol losses a lot of money due to this oversight. 80% of the fees loss or stuck in the contract is huge. Also protocol revenue leaks, undermining sustainability.

Tools Used

Manual review

Recommendations

feeTypes[6] = FeeType({
veRAACShare: 2500, // 25% of 2% tax → 0.5% absolute
burnShare: 2500, // 25% → 0.5%
repairShare: 5000, // 50% → 1.0%
treasuryShare: 0
});
​
// NFT Royalty Fees (2% total)
feeTypes[7] = FeeType({
veRAACShare: 2500, // 25% of 2% tax → 0.5% absolute
burnShare: 0,
repairShare: 5000, // 50% → 1.0%
treasuryShare: 2500 // 25% of 2% tax → 0.5% absolute
});
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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