Definition ∞ A rounding error flaw is a defect in software or a protocol where minor inaccuracies occur during numerical calculations due to limitations in floating-point arithmetic or improper handling of decimal values. While often small, these errors can accumulate or be exploited in financial systems, leading to significant discrepancies or vulnerabilities. It represents a subtle but critical computational defect.
Context ∞ News reports on rounding error flaws in crypto often pertain to smart contract vulnerabilities or exploits in decentralized finance (DeFi) protocols. Such incidents highlight the importance of rigorous code auditing and precise numerical handling in blockchain development to prevent financial losses and maintain system integrity.
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