FoundrySolidityLayer 2
7.25 ETH
Submission Details
Severity: low
Valid

Correction window allows third-party bonus to be swept before good-faith CORRUPTED reflag

Author Revealed upon completion

Root + Impact

In good-faith CORRUPTED, the named attacker/whitehat should receive the full bounty: snapshotTotalStaked + snapshotTotalBonus.

However, flagOutcome() allows pre-claim reflagging while claimsStarted == false, and SURVIVED can be flagged while the registry is already CORRUPTED. During this correction window, anyone can call sweepUnclaimedBonus().

When riskWindowStart == 0, sweepUnclaimedBonus() reserves only outstanding principal, treats the whole bonus as sweepable, sends it to recoveryAddress, and decrements totalBonus:

if (totalEligibleStake != 0) {
reserved = totalEligibleStake;
if (riskWindowStart != 0) {
reserved += snapshotTotalBonus - claimedBonus;
}
}
if (totalEligibleStake == 0 || riskWindowStart == 0) {
totalBonus -= amount <= totalBonus ? amount : totalBonus;
}

If the moderator first flags SURVIVED, the bonus can be swept to the sponsor-controlled recoveryAddress before the moderator corrects to good-faith CORRUPTED. The corrected bounty then snapshots only the remaining principal.

RISK

Likelihood:

  • The registry is CORRUPTED, no active-risk window was locally observed, and riskWindowStart == 0.

  • The moderator uses the documented correction window by first flagging SURVIVED and later correcting to good-faith CORRUPTED.

  • Any caller can invoke sweepUnclaimedBonus() before the correction because the function is permissionless and does not close the correction window.

Impact:

  • Third-party bonus funds intended to reward the named whitehat are permanently diverted to the sponsor-controlled recoveryAddress.

  • The loss can dominate the bounty. With 1 principal and 1000 bonus, direct good-faith CORRUPTED would pay 1001 to the whitehat, but this sequence pays only 1; the 1000 bonus is swept to recoveryAddress.

  • This creates a real capability delta: in good-faith CORRUPTED, the sponsor should receive nothing, but this sequence lets the sponsor-controlled recovery address capture the bonus.

Proof of Concept

```solidity
// SPDX-License-Identifier: MIT
pragma solidity 0.8.26;
import {IConfidencePool} from "src/interfaces/IConfidencePool.sol";
import {IAttackRegistry} from "@battlechain/interface/IAttackRegistry.sol";
import {PoolStates} from "src/libraries/PoolStates.sol";
import {BaseConfidencePoolTest} from "test/helpers/BaseConfidencePoolTest.sol";
contract L8BountyDiversionTest is BaseConfidencePoolTest {
function testBonusDominantBountyIsDivertedDuringCorrectionWindow() external {
uint256 principal = 1 * ONE;
uint256 bonus = 1000 * ONE;
_stake(alice, principal);
_contributeBonus(carol, bonus);
attackRegistry.setAgreementState(IAttackRegistry.ContractState.CORRUPTED);
vm.prank(moderator);
pool.flagOutcome(PoolStates.Outcome.SURVIVED, false, address(0));
assertEq(pool.riskWindowStart(), 0, "no active-risk observation");
uint256 recoveryBefore = token.balanceOf(recovery);
pool.sweepUnclaimedBonus();
assertEq(token.balanceOf(recovery) - recoveryBefore, bonus, "bonus diverted to recovery");
assertEq(token.balanceOf(address(pool)), principal, "only principal remains");
assertEq(pool.totalBonus(), 0, "swept bonus removed from later snapshot");
vm.prank(moderator);
pool.flagOutcome(PoolStates.Outcome.CORRUPTED, true, attacker);
assertEq(pool.bountyEntitlement(), principal, "corrected bounty excludes swept bonus");
uint256 attackerBefore = token.balanceOf(attacker);
vm.prank(attacker);
pool.claimAttackerBounty();
assertEq(token.balanceOf(attacker) - attackerBefore, principal, "attacker receives only principal");
assertEq(bonus, 1000 * (token.balanceOf(attacker) - attackerBefore), "99.9 percent of direct bounty lost");
vm.expectRevert(IConfidencePool.NothingToSweep.selector);
pool.claimCorrupted();
}
}

Recommended Mitigation

- Allow sweepUnclaimedBonus() to transfer protocol-accounted bonus while the moderator correction window remains open.
+ Close the correction window when sweepUnclaimedBonus() transfers protocol-accounted bonus.
+ Alternatively, reserve snapshotTotalBonus until the outcome can no longer be corrected.
A simple fix is to set claimsStarted = true whenever sweepUnclaimedBonus() transfers protocol-accounted bonus. The invariant should be: once protocol-accounted value leaves the pool, the moderator correction window must not remain open in a way that changes who was entitled to that value.
Updates

Lead Judging Commences

inallhonesty Lead Judge 2 days ago
Submission Judgement Published
Validated
Assigned finding tags:

sweepUnclaimedBonus() omits claimsStarted latch, letting a moderator re-flag re-snapshot a drained totalBonus and short the CORRUPTED bounty

Impact – Medium Up to the entire bonus pool can be routed to the wrong party for good, with no on-chain way to unwind it, and in a stakerless pool the effect is total since bountyEntitlement computes to zero and claimAttackerBounty reverts outright. This impact is definitely not High: the pool stays solvent throughout with no principal ever at risk, and the money ends up at the sponsor's own recoveryAddress, which in most pools means a sponsor recovering a bonus they funded themselves. The whitehat's claim on that bonus also only exists because the moderator changed their mind after the fact. Likelihood – Low Four separate things have to coincide: nobody touches the pool for the whole active-risk window (or there are no stakers to begin with), the moderator flags SURVIVED and later reverses to CORRUPTED, that reversal is good-faith with a named attacker, and a sweep lands between the two flags. The first cuts against staker self-interest, since skipping the poke costs them their entire bonus share, and the second asks the moderator to overturn a scope judgement, which is a bigger deal than the typo fix DESIGN.md #4 offers the window for. The sweep itself I'd treat as near-certain once the rest holds, given it's permissionless and the sponsor has an obvious reason to make the call, but assembling the first three in one pool lifecycle is where this stays rare.

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