This issue arises when a smart contract inadvertently facilitates the improper transfer of Ether or tokens. It’s often rooted in flawed calculation logic or unsanitized user inputs, culminating in erroneous token transfers.

A typical instance involves a contract tasked with proportional token distribution based on user stakes. Should the contract’s division logic be inadequately implemented, it might result in disproportionate, often excessive, token disbursement.

These small errors often have outsized negative effects. Octane searches for such bugs in token transfer calculations, and groups this vulnerability under the umbrella of Ether/Token leaking.