Definition ∞ A Rounding Error Attack is a security exploit that capitalizes on minute discrepancies arising from floating-point arithmetic or precision limitations in smart contracts. By repeatedly executing transactions that generate tiny, unnoticeable fractional amounts, an attacker can accumulate these negligible values into a significant sum. This subtle accumulation often goes undetected in initial audits.
Context ∞ News about Rounding Error Attacks often surfaces after a protocol has experienced an unexpected drain of funds over time. These incidents highlight the extreme precision required in smart contract development and the potential for seemingly insignificant numerical details to become critical vulnerabilities. Developers must employ careful fixed-point arithmetic or robust testing to prevent such subtle exploits.