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

No Checks for Fee Share Totals In `_initializeFeeTypes()`

kobbyeugene

Summary

The _initializeFeeTypes lacks validation to ensure fee shares sum to 10,000 bps, risking future allocation errors.

Vulnerability Details

function _initializeFeeTypes() internal {
// Protocol Fees: 80% to veRAAC holders, 20% to treasury
// @audit wrong bais points being used
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%
});
}

A developer modifying the fees type eg. feeTypes[3] could accidentally set veRAACShare: 6000, repairShare: 3000, treasuryShare: 3000 (total = 12,000 bps). Or a governance proposal updates Insurance Fees (Type 3) but introduces a sum mismatch.

Impact

This can lead to miscalculations which will financially affect the protocol. An example:
Scenario: A governance proposal updates "Insurance Fees" (Type 3) to veRAACShare: 6000, repairShare: 3000, treasuryShare: 3000.

Total Basis Points: 6000 + 3000 + 3000 = 12,000 bps (120% of the fee).

Result: Every transaction involving insurance fees reverts due to arithmetic overflow, blocking:

  • User withdrawals from insurance pools.

  • Claims processing during market crashes.

Tools Used

Recommendations

add validation

require(
veRAACShare + burnShare + repairShare + treasuryShare == 10_000,
"Fee shares must total 10,000 bps"
);
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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