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Submission Details
Severity: low
Invalid

Missing protocol validation in runNextAction

Context

PerpetualVault.sol

Summary

The runNextAction function in the contract is missing a validation check for the protocol type before executing a swap. This omission allows unintended protocols to be used, which could lead to unexpected behavior or security risks.

Vulnerability Details

function runNextAction(
MarketPrices memory prices,
bytes[] memory metadata
) external nonReentrant gmxLock {
....
// swap indexToken that could be generated from the last action into collateralToken
// use only DexSwap
if (
IERC20(indexToken).balanceOf(address(this)) *
prices.indexTokenPrice.min >=
ONE_USD
) {
(, bytes memory data) = abi.decode(
metadata[1],
(PROTOCOL, bytes)
);
// @audit missing
// if (_protocol != PROTOCOL.DEX) {
// revert Error.InvalidData();
// }
_doDexSwap(data, false);
}
uint256 acceptablePrice = abi.decode(metadata[0], (uint256));
_createIncreasePosition(_isLong, acceptablePrice, prices);
}
} else if (_nextAction.selector == NextActionSelector.WITHDRAW_ACTION) {
// swap indexToken that could be generated from settle action or liquidation/ADL into collateralToken
// use only DexSwap
if (
IERC20(indexToken).balanceOf(address(this)) *
prices.indexTokenPrice.min >=
ONE_USD
) {
(, bytes memory data) = abi.decode(
metadata[1],
(PROTOCOL, bytes)
);
// @audit missing
// if (_protocol != PROTOCOL.DEX) {
// revert Error.InvalidData();
// }
_doDexSwap(data, false);
}
uint256 depositId = flowData;
_withdraw(depositId, metadata[0], prices);

Issue: Missing Protocol Check

The function decodes the protocol type but does not validate it before proceeding with the _doDexSwap call. This allows any protocol type to be used instead of enforcing PROTOCOL.DEX, which could lead to executing unintended swaps.
Impact

Impact

  • Loss of funds due to incorrect swap execution.

Tools Used

  • Manual review

Recommendations

Add a validation check to ensure only PROTOCOL.DEX is allowed:

if (_protocol != PROTOCOL.DEX) {
revert Error.InvalidData();
}

Updates

Lead Judging Commences

n0kto Lead Judge 8 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

Admin is trusted / Malicious keepers

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point. Keepers are added by the admin, there is no "malicious keeper" and if there is a problem in those keepers, that's out of scope. ReadMe and known issues states: " * System relies heavily on keeper for executing trades * Single keeper point of failure if not properly distributed * Malicious keeper could potentially front-run or delay transactions * Assume that Keeper will always have enough gas to execute transactions. There is a pay execution fee function, but the assumption should be that there's more than enough gas to cover transaction failures, retries, etc * There are two spot swap functionalies: (1) using GMX swap and (2) using Paraswap. We can assume that any swap failure will be retried until success. " " * Heavy dependency on GMX protocol functioning correctly * Owner can update GMX-related addresses * Changes in GMX protocol could impact system operations * We can assume that the GMX keeper won't misbehave, delay, or go offline. " "Issues related to GMX Keepers being DOS'd or losing functionality would be considered invalid."

Suppositions

There is no real proof, concrete root cause, specific impact, or enough details in those submissions. Examples include: "It could happen" without specifying when, "If this impossible case happens," "Unexpected behavior," etc. Make a Proof of Concept (PoC) using external functions and realistic parameters. Do not test only the internal function where you think you found something.

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