Company Simulator
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Submission Details
Impact: low
Likelihood: medium
Invalid

L05. Funding Denial via Strict Insolvency Check in fund_investor() even if the company is solvent

accessdenied

Root + Impact

Description

  • Normal behavior: The fund_investor() function allows users to invest ETH in exchange for shares. The function calculates the company's net worth and share price to determine how many shares the investor receives.

  • Problem: The function contains the check assert (self.company_balance > self.holding_debt), "Company is insolvent!!!". When company_balance is exactly equal to holding_debt, this assertion fails. This can occur naturally when the company has zero net profit, effectively blocking all future investor funding even though the system is economically sound.

# Root cause in the codebase with @> marks
@> assert (self.company_balance > self.holding_debt), "Company is insolvent!!!"
​

Risk

Likelihood:

  • During normal operation when all previous revenues and debts balance exactly, producing company_balance == holding_debt.

  • After multiple share redemptions or debt payments, the company's balance can equal its total outstanding obligations.

Impact:

  • Investors cannot fund the company until the owner injects more ETH, leading to a potential DoS on funding.

  • Share issuance logic may be blocked, freezing growth and participation even though no economic loss has occurred.

Proof of Concept

# 1) Deploy CompanyGame
company = deploy CompanyGame()
​
# 2) Owner sets initial company_balance and holding_debt to equal amounts
company.company_balance = 10_000_000_000_000_000
company.holding_debt = 10_000_000_000_000_000
​
# 3) Attempt to call fund_investor() from any investor
# The function reverts because:
# assert (company_balance > holding_debt)
CompanyGame(company_address).fund_investor(action=1, msg.value=1_000_000_000_000_000)
​
# Written explanation:
# Although the company is fully collateralized and no real insolvency exists,
# the strict inequality prevents any new investment from being accepted.
# This blocks legitimate investor participation until the owner injects extra funds.
​

Recommended Mitigation

Relax the strict inequality to allow equality and preserve natural liveness:

- remove this code
@> assert (self.company_balance > self.holding_debt), "Company is insolvent!!!"
+ add this code
+ assert (self.company_balance >= self.holding_debt), "Company is insolvent!!!"
Updates

Lead Judging Commences

0xshaedyw Lead Judge
4 days ago
0xshaedyw Lead Judge 3 days ago
Submission Judgement Published
Invalidated
Reason: Design choice

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