Core Contracts

Summary

The protocol's fee initialization logic exhibits inconsistency between initial setup and update mechanisms. Fee Types 6 and 7 lack proper percentage caps during initialization, while updates enforce strict 100% validation, creating operational conflicts.

Vulnerability Details

1. Initial Fee Configuration Issue

   • Fee Types 6 and 7 initialized at 2% without percentage cap

   • No validation during deployment process

2. Update Function Constraints

   • updateFeeType enforces strict 100% total requirement

   • Forces fee adjustment from 2% to 100% during updates

3. System Implications

   • Potential misalignment with intended fee structure

   • Forced fee modifications during governance updates

Impact

• Mandatory 100% fee allocation during updates

• Potential protocol behavior inconsistencies

• Administrative and governance complications

Tools Used

• Manual code review

Recommendations

• Standardize fee initialization logic with update requirements

• Implement consistent validation across all fee-related functions