Core Contracts

Summary

The allocateFunds function lacks a validation check to ensure that the allocated amount does not exceed a predefined maximum limit or the allocator’s available balance. This could allow allocations of unrealistically high amounts, potentially leading to accounting inconsistencies, misallocation of funds, or denial-of-service scenarios.
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Vulnerability Details

The vulnerability lies in the following part of the allocateFunds function:

The function does not enforce a maximum limit on the amount that can be allocated. This could allow an allocator to allocate an excessively large amount, potentially disrupting the protocol's accounting or leading to unintended behavior.
The function does not verify whether the allocator has sufficient balance or authority to allocate the specified amount.

Impact

• Allocating excessive amounts or exceeding available balances could disrupt the protocol's accounting and allocation mechanisms.

• Misallocated funds might not be recoverable or could cause unexpected failures when attempting disbursement

Tools Used

Manual Code Review

Recommendations

1. Define a MAX_ALLOCATION limit and ensure that amount does not exceed it.

2. If allocations are tied to actual balances, check that msg.sender has sufficient balance before allocation.