Core Contracts

Summary

The fee distribution calculations suffer from precision loss due to integer division, which may result in inaccurate fee allocations.

Vulnerability Details

In the _calculateDistribution function, the contract computes fee shares using expressions like:

uint256 weight = (feeAmount * BASIS_POINTS) / totalFees;
shares[0] += (weight * feeType.veRAACShare) / BASIS_POINTS;

Because Solidity uses integer arithmetic, this division in weight calculation can truncate fractional parts, causing rounding errors. Over time and across multiple fee types, these small losses can accumulate, leading to a significant discrepancy between the intended and actual distribution of fees.

Impact

Cumulative precision loss can undermine the integrity of the fee distribution mechanism.

Tools Used

Manual Review

Recommendations

• Explore using fixed-point math libraries that support fractional calculations to improve accuracy.

• divide by totalFees after shares calcualtion