Definition ∞ Rounding error vulnerability is a security flaw in smart contract code where minor discrepancies arising from numerical rounding during calculations can be exploited. These precision issues can lead to small, cumulative losses of funds or incorrect balance updates. Such vulnerabilities compromise the financial integrity of decentralized applications. They require meticulous coding practices.
Context ∞ Developers address rounding error vulnerabilities through careful smart contract design, often employing fixed-point arithmetic or robust testing methodologies to ensure exact numerical precision. Exploits stemming from these errors have led to significant financial losses in some decentralized finance protocols. Preventing these flaws is a critical aspect of smart contract security audits.
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