updateHighWaterMark can never be set to 0

[hats-bug-reporter]

Github username: @@GiorgioDalla
Twitter username: 0xAuditism
Submission hash (on-chain): 0x96e86d275474ea167cfa18efd11b6625924c5beb02fe3a357d85dd8df72dc369
Severity: medium

Description:
Description
During the first deposit, the watermark is supposed to be set to 0, however the waterMark can never be set to 0 if it is >0 .
Attack Scenario
There is no attack involved. It is just that it is clearly the protocol's intent to put it back to 0 for the first deposit, however this cannot be done

Attachments

1. Proof of Concept (PoC) File

    // If the total supply is zero, this is the first deposit, and tokens are minted based on the initial amount.
    if (_totalSupply == 0) {
      tokenAmount = assetManagementConfig().initialPortfolioAmount();
      // Reset the high watermark to zero if it's not the first deposit. //@note apparently this is just a mistake, this is supposed to happen.
  @>      feeModule().updateHighWaterMark(0);
    } else {
      // Calculate the amount of portfolio tokens to mint based on the deposit.
   tokenAmount = _getTokenAmountToMint(_depositRatio, _totalSupply);
    }

Here above we can clearly see that the intent is to set the waterMark to 0 when going through the first deposit.

  function _updateHighWaterMark(uint256 _currentPrice) internal {
    highWatermark = _currentPrice > highWatermark
      ? _currentPrice
      : highWatermark;
  }

Here above is the _updateHighWaterMark function that was called. However the waterMark is only set to the _currentPrice when it is bigger than the current highWatermark.
which means if highWatermark = 10, and _currentPrice = 0, the highWatermark won't budge

2. Revised Code File (Optional)
   Since it is in the protocol's intention to have the highWatermark set to 0 when having the first deposit. Consider changing the function's logic accordingly.

function _updateHighWaterMark(uint256 _currentPrice) internal {
+ highWatermark = _currentPrice;
-    highWatermark = _currentPrice > highWatermark
-     ? _currentPrice
-     : highWatermark;
  }

[langnavina97]

Thank you for submitting the issue. We've resolved it and pushed the changes, which can be found here: Velvet-Capital@25ef3e7

@GiorgioDalla