MyCut

AI First Flight #8
Beginner FriendlyFoundry
EXP
View results
Submission Details
Severity: high
Valid

H-1 — Manager cut is transferred to the ContestManager contract and permanently locked

Root + Impact

Pot is constructed with Ownable(msg.sender) inside ContestManager.createContest, so the pot's owner is the ContestManager contract. When ContestManager.closeContest calls pot.closePot(), the msg.sender inside closePot is the ContestManager. The manager cut is therefore transferred to the ContestManager contract, which has no function to withdraw or rescue ERC20 tokens. The tokens are locked forever.

Description

// src/Pot.sol
contract Pot is Ownable(msg.sender) { // @> owner == ContestManager (deployer)
...
function closePot() external onlyOwner {
...
if (remainingRewards > 0) {
uint256 managerCut = remainingRewards / managerCutPercent;
i_token.transfer(msg.sender, managerCut); // @> msg.sender == ContestManager, not the human owner
...
}
}
}
​
// src/ContestManager.sol
Pot pot = new Pot(players, rewards, token, totalRewards); // @> msg.sender for Pot ctor is ContestManager
...
function closeContest(address contest) public onlyOwner {
_closeContest(contest); // @> calls Pot.closePot()
}
// @> no withdraw() / rescueERC20() anywhere on ContestManager

Risk

Likelihood: Certain on every close with a residual — no special conditions required.

Impact: The 10% manager cut (taken out of player principal) is irrecoverably stuck in the ContestManager contract.

Proof of Concept

// test/Exploits.t.sol
function testManagerCutLockedInContestManager() public {
uint256 total = 200e18;
Pot pot = _createFundClose(100e18, 100e18, total);
​
vm.prank(alice);
pot.claimCut(); // remaining = 100
​
vm.warp(block.timestamp + 91 days);
uint256 ownerBefore = token.balanceOf(owner);
vm.prank(owner);
manager.closeContest(address(pot));
uint256 ownerAfter = token.balanceOf(owner);
​
uint256 expectedCut = 100e18 / 10; // 10 of the 100 remaining
// The cut went to the ContestManager contract, NOT to the owner.
assertEq(token.balanceOf(address(manager)), expectedCut, "manager cut stuck in ContestManager");
assertEq(ownerAfter, ownerBefore, "owner balance must not grow by the manager cut");
console.log("Locked manager cut:", token.balanceOf(address(manager)));
}

Recommended Mitigation

- i_token.transfer(msg.sender, managerCut);
+ // forward the cut to the real treasury/owner instead of the calling contract
+ address payable treasury = payable(Ownable(address(this)).owner());
+ i_token.transfer(treasury, managerCut);

Or have ContestManager.closeContest pull the cut from the pot and immediately forward it to its own owner().

Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 7 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' ); ```

Support

FAQs

Can't find an answer? Chat with us on Discord, Twitter or Linkedin.

Give us feedback!