Submitted by 0x73696d616f
https://github.com/Tapioca-DAO/tapiocaz-audit/blob/bcf61f79464cfdc0484aa272f9f6e28d5de36a8f/contracts/tOFT/BaseTOFT.sol#L99 
https://github.com/Tapioca-DAO/tapiocaz-audit/blob/bcf61f79464cfdc0484aa272f9f6e28d5de36a8f/contracts/tOFT/BaseTOFT.sol#L551 
https://github.com/Tapioca-DAO/tapiocaz-audit/blob/bcf61f79464cfdc0484aa272f9f6e28d5de36a8f/contracts/tOFT/modules/BaseTOFTOptionsModule.sol#L142 
https://github.com/Tapioca-DAO/tapioca-sdk-audit/blob/90d1e8a16ebe278e86720bc9b69596f74320e749/src/contracts/token/oft/v2/BaseOFTV2.sol#L18
All the ETH in the destination chain where sendFrom() is called is sent to the refundAddress in the LzCallParams. Thus, for TapiocaOFTs which have ETH as the underlying asset erc, all the funds will be lost if the refundAddress is an address other than the TapiocaOFT.
sendFrom() uses the msg.value as native fees to LayerZero, being the excess sent refunded to the refundAddress. In BaseTOFTOptionsModule, sendFromDestination(), which is called when there was a triggerSendFrom() from a source chain which is delivered to the current chain, the value sent to the sendFrom() function is address(this).balance:
This means that all the balance but the LayerZero message fee will be refunded to the refundAddress in the callParams, as can be seen in the sendFrom() function:
The following POC shows that a user that specifies the refundAddress as its address will receive all the ETH balance in the TapiocaOFT contract minus the LayerZero message fee.
Vscode, Foundry
The value sent in the sendFrom() call in the BaseTOFTOptionsModule should be sent and forwarded from the triggerSendFrom() call in the source chain. This way, the user pays the fees from the source chain.
0xRektora (Tapioca) confirmed and commented:
LSDan (Judge) decreased severity to Medium
0x73696d616f (Warden) commented:
LSDan (Judge) increase severity to High and commented:
