MyCut

AI First Flight #8
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EXP
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Submission Details
Severity: high
Valid

Owner Cut Stuck in `ContestManager`

Summary
When closeContest function in the ContestManager contract is called, pot sends the owner's cut to the ContestManager itself, with no mechanism to withdraw these funds.

Vulnerability Details:
Relevant code -
Pot
ContestManager

The vulnerability stems from current ownership implementation between the Pot and ContestManager contracts, leading to funds being irretrievably locked in the ContestManager contract.

Ownership Assignment:
When a Pot contract is created, it assigns msg.sender as its owner:

contract Pot is Ownable(msg.sender) { ... }
Contract Creation Context:
The ContestManager contract creates new Pot instances through its createContest function:

function createContest(...) public onlyOwner returns (address) {
Pot pot = new Pot(players, rewards, token, totalRewards);
...
}
In this context, msg.sender for the new Pot is the ContestManager contract itself, not the external owner who called createContest.

Unintended Ownership:
As a result, the ContestManager becomes the owner of each Pot contract it creates, rather than the intended external owner.

Fund Lock-up:
When closeContest is called (after the 90-day contest period), it triggers the closePot function:

function closeContest(address contest) public onlyOwner {
Pot(contest).closePot();
}
The closePot function sends the owner's cut to its caller. Since the caller is ContestManager, these funds are sent to and locked within the ContestManager contract.

Lack of Withdrawal Mechanism:
The ContestManager contract does not include any functionality to withdraw or redistribute these locked funds, rendering them permanently inaccessible.

This ownership misalignment and the absence of a fund recovery mechanism result in a critical vulnerability where contest rewards become permanently trapped in the ContestManager contract.

POC
In existing test suite, add following test

function testOwnerCutStuckInContestManager() public mintAndApproveTokens {
vm.startPrank(user);
contest = ContestManager(conMan).createContest(
players,
rewards,
IERC20(ERC20Mock(weth)),
100
);
ContestManager(conMan).fundContest(0);
vm.stopPrank();

// Fast forward 91 days
vm.warp(block.timestamp + 91 days);

uint256 conManBalanceBefore = ERC20Mock(weth).balanceOf(conMan);
console.log("contest manager balance before:", conManBalanceBefore);

vm.prank(user);
ContestManager(conMan).closeContest(contest);

uint256 conManBalanceAfter = ERC20Mock(weth).balanceOf(conMan);

// Assert that the ContestManager balance has increased (owner cut is stuck)
assertGt(conManBalanceAfter, conManBalanceBefore);

console.log("contest manager balance after:", conManBalanceAfter);
}
run forge test --mt testOwnerCutStuckInContestManager -vv in the terminal and it will return following output:

[⠊] Compiling...
[⠑] Compiling 1 files with Solc 0.8.20
[⠘] Solc 0.8.20 finished in 1.66s
Compiler run successful!

Ran 1 test for test/TestMyCut.t.sol:TestMyCut
[PASS] testOwnerCutStuckInContestManager() (gas: 810988)
Logs:
User Address: 0x6CA6d1e2D5347Bfab1d91e883F1915560e09129D
Contest Manager Address 1: 0x7BD1119CEC127eeCDBa5DCA7d1Bd59986f6d7353
Minting tokens to: 0x6CA6d1e2D5347Bfab1d91e883F1915560e09129D
Approved tokens to: 0x7BD1119CEC127eeCDBa5DCA7d1Bd59986f6d7353
contest manager balance before: 0
contest manager balance after: 10

Suite result: ok. 1 passed; 0 failed; 0 skipped; finished in 10.51ms (1.31ms CPU time)
Impact
Loss of funds for the protocol / owner

Tools Used
Manual Review, Foundry

Recommendations
Add a claimERC20 function ContestManager to solve this issue.

function claimStuckedERC20(address tkn, address to, uint256 amount) external onlyOwner {
// bytes4(keccak256(bytes('transfer(address,uint256)')));
(bool success, bytes memory data) = tkn.call(abi.encodeWithSelector(0xa9059cbb, to, amount));
require(
success && (data.length == 0 || abi.decode(data, (bool))),
'ContestManager::safeTransfer: transfer failed'
);

Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 3 hours ago
Submission Judgement Published
Validated
Assigned finding tags:

[H-01] Owner Cut Stuck in `ContestManager`

## Description When `closeContest` function in the `ContestManager` contract is called, `pot` sends the owner's cut to the `ContestManager` itself, with no mechanism to withdraw these funds. ## Vulnerability Details: Relevant code - [Pot](https://github.com/Cyfrin/2024-08-MyCut/blob/main/src/Pot.sol#L7) [ContestManager](https://github.com/Cyfrin/2024-08-MyCut/blob/main/src/ContestManager.sol#L16-L26) The vulnerability stems from current ownership implementation between the `Pot` and `ContestManager` contracts, leading to funds being irretrievably locked in the `ContestManager` contract. 1. **Ownership Assignment**: When a `Pot` contract is created, it assigns `msg.sender` as its owner: ```solidity contract Pot is Ownable(msg.sender) { ... } ``` 2. **Contract Creation Context**: The `ContestManager` contract creates new `Pot` instances through its `createContest` function: ```solidity function createContest(...) public onlyOwner returns (address) { Pot pot = new Pot(players, rewards, token, totalRewards); ... } ``` In this context, `msg.sender` for the new `Pot` is the `ContestManager` contract itself, not the external owner who called `createContest`. 3. **Unintended Ownership**: As a result, the `ContestManager` becomes the owner of each `Pot` contract it creates, rather than the intended external owner. 4. **Fund Lock-up**: When `closeContest` is called (after the 90-day contest period), it triggers the `closePot` function: ```solidity function closeContest(address contest) public onlyOwner { Pot(contest).closePot(); } ``` The `closePot` function sends the owner's cut to its caller. Since the caller is `ContestManager`, these funds are sent to and locked within the `ContestManager` contract. 5. **Lack of Withdrawal Mechanism**: The `ContestManager` contract does not include any functionality to withdraw or redistribute these locked funds, rendering them permanently inaccessible. This ownership misalignment and the absence of a fund recovery mechanism result in a critical vulnerability where contest rewards become permanently trapped in the `ContestManager` contract. ## POC In existing test suite, add following test ```solidity function testOwnerCutStuckInContestManager() public mintAndApproveTokens { vm.startPrank(user); contest = ContestManager(conMan).createContest( players, rewards, IERC20(ERC20Mock(weth)), 100 ); ContestManager(conMan).fundContest(0); vm.stopPrank(); // Fast forward 91 days vm.warp(block.timestamp + 91 days); uint256 conManBalanceBefore = ERC20Mock(weth).balanceOf(conMan); console.log("contest manager balance before:", conManBalanceBefore); vm.prank(user); ContestManager(conMan).closeContest(contest); uint256 conManBalanceAfter = ERC20Mock(weth).balanceOf(conMan); // Assert that the ContestManager balance has increased (owner cut is stuck) assertGt(conManBalanceAfter, conManBalanceBefore); console.log("contest manager balance after:", conManBalanceAfter); } ``` run `forge test --mt testOwnerCutStuckInContestManager -vv` in the terminal and it will return following output: ```js [⠊] Compiling... [⠑] Compiling 1 files with Solc 0.8.20 [⠘] Solc 0.8.20 finished in 1.66s Compiler run successful! Ran 1 test for test/TestMyCut.t.sol:TestMyCut [PASS] testOwnerCutStuckInContestManager() (gas: 810988) Logs: User Address: 0x6CA6d1e2D5347Bfab1d91e883F1915560e09129D Contest Manager Address 1: 0x7BD1119CEC127eeCDBa5DCA7d1Bd59986f6d7353 Minting tokens to: 0x6CA6d1e2D5347Bfab1d91e883F1915560e09129D Approved tokens to: 0x7BD1119CEC127eeCDBa5DCA7d1Bd59986f6d7353 contest manager balance before: 0 contest manager balance after: 10 Suite result: ok. 1 passed; 0 failed; 0 skipped; finished in 10.51ms (1.31ms CPU time) ``` ## Impact Loss of funds for the protocol / owner ## Recommendations Add a claimERC20 function `ContestManager` to solve this issue. ```solidity function claimStuckedERC20(address tkn, address to, uint256 amount) external onlyOwner { // bytes4(keccak256(bytes('transfer(address,uint256)'))); (bool success, bytes memory data) = tkn.call(abi.encodeWithSelector(0xa9059cbb, to, amount)); require( success && (data.length == 0 || abi.decode(data, (bool))), 'ContestManager::safeTransfer: transfer failed' ); ```

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