FoundrySolidityLayer 2
7.25 ETH
Submission Details
Severity: low
Valid

`sweepUnclaimedBonus` + moderator re-flag permanently deflates CORRUPTED whitehat bounty

Author Revealed upon completion

Root + Impact

The named whitehat attacker permanently loses part of their bounty entitlement. Value that should be claimable by the whitehat has already been transferred to recoveryAddress and cannot be recovered.

Description

  • When a pool resolves as CORRUPTED with good-faith, the moderator names a whitehat attacker entitled to claim the full pool as a bounty within 180 days. The bounty entitlement (bountyEntitlement) is set at flagOutcome time from snapshotTotalStaked + snapshotTotalBonus.

  • sweepUnclaimedBonus() intentionally does NOT set claimsStarted (line 503 comment). After a SURVIVED flag with riskWindowStart == 0, anyone can sweep the entire bonus to recoveryAddress, decrementing live totalBonus to 0. If the moderator then re-flags to CORRUPTED good-faith (re-flag window still open because claimsStarted is false), the new snapshot captures totalBonus = 0, permanently reducing bountyEntitlement. The swept value has already been transferred to recoveryAddress and cannot be recovered.

// ConfidencePool.sol:sweepUnclaimedBonus — lines 499-506
@> if (totalEligibleStake == 0 || riskWindowStart == 0) {
@> totalBonus -= amount <= totalBonus ? amount : totalBonus; // live totalBonus decremented
@> }
@> // Intentionally does NOT set claimsStarted. // re-flag window stays open after sweep
stakeToken.safeTransfer(recoveryAddress, amount);
// ConfidencePool.sol:flagOutcome — lines 354-362
@> if (outcome != PoolStates.Outcome.UNRESOLVED && claimsStarted) revert OutcomeAlreadySet();
// re-flag allowed when claimsStarted is false — sweep didn't set it
@> snapshotTotalBonus = totalBonus; // captures deflated totalBonus (0 after sweep)
@> bountyEntitlement = willBeGoodFaithCorrupted
@> ? snapshotTotalStaked + snapshotTotalBonus // whitehat bounty permanently reduced
@> : 0;

Risk

Likelihood:

Reason 1 — A moderator who first flags SURVIVED on a CORRUPTED registry (out-of-scope breach assessment) and later re-assesses as in-scope CORRUPTED will trigger this path. The sweep can occur at any point between the two flags by any caller.
Reason 2 — The sweep is permissionless and `sweepUnclaimedBonus` accepts SURVIVED outcome. When `riskWindowStart == 0`, the entire bonus is unreserved and sweepable. No attacker coordination is needed.

Impact:

Impact 1 — The named whitehat permanently loses the swept bonus amount from their bounty entitlement. The value has already been transferred to `recoveryAddress` and cannot be recovered.
Impact 2 — The `bountyEntitlement` accounting field diverges from the intended "full pool value" semantics, creating a brittle state for off-chain indexers and whitehat expectations.

Proof of Concept

function test_M2_SweepReFlagDeflatesBountyEntitlement() public {
uint256 stakeAmount = 100 * ONE;
uint256 bonusAmount = 50 * ONE;
_stake(alice, stakeAmount);
_stake(bob, stakeAmount);
_contributeBonus(carol, bonusAmount);
// Registry goes directly to CORRUPTED (no active-risk → rws==0)
attackRegistry.setAgreementState(IAttackRegistry.ContractState.CORRUPTED);
assertEq(pool.riskWindowStart(), 0);
// Moderator flags SURVIVED (out-of-scope breach assessment)
vm.prank(moderator);
pool.flagOutcome(PoolStates.Outcome.SURVIVED, false, address(0));
// Anyone sweeps unclaimed bonus → recoveryAddress, totalBonus decremented
uint256 recoveryBefore = token.balanceOf(recovery);
pool.sweepUnclaimedBonus();
uint256 swept = token.balanceOf(recovery) - recoveryBefore;
assertEq(swept, bonusAmount);
assertEq(pool.totalBonus(), 0);
assertFalse(pool.claimsStarted()); // re-flag window still open
// Moderator re-assesses → in-scope CORRUPTED → re-flags good-faith
vm.prank(moderator);
pool.flagOutcome(PoolStates.Outcome.CORRUPTED, true, whitehat);
// Whitehat bounty permanently deflated
uint256 bounty = pool.bountyEntitlement();
uint256 expectedFull = stakeAmount * 2 + bonusAmount;
assertEq(bounty, stakeAmount * 2); // bonus missing from entitlement
assertLt(bounty, expectedFull); // whitehat lost 50e18
}

Forge output:

[PASS] test_M2_SweepReFlagDeflatesBountyEntitlement()
bountyEntitlement: 200000000000000000000
Would have been: 250000000000000000000
Whitehat lost: 50000000000000000000

Recommended Mitigation

Snapshot the bonus pool values only on the first flag, not on re-flag. This prevents a re-flag from capturing totalBonus after it has been decremented by a sweep, keeping bountyEntitlement consistent with the original resolution state.

function flagOutcome(PoolStates.Outcome newOutcome, bool goodFaith_, address attacker_)
external onlyModerator
{
+ bool isFirstFlag = outcome == PoolStates.Outcome.UNRESOLVED;
// ... validation ...
outcome = newOutcome;
goodFaith = goodFaith_;
attacker = attacker_;
+ if (isFirstFlag) {
snapshotTotalStaked = totalEligibleStake;
snapshotTotalBonus = totalBonus;
snapshotSumStakeTime = sumStakeTime;
snapshotSumStakeTimeSq = sumStakeTimeSq;
+ }
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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