MyCut

AI First Flight #8
Beginner FriendlyFoundry
EXP
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Submission Details
Severity: low
Valid

Manager Fee Rounds to Zero for Small Reward Pools.

Root + Impact

Description

Manager fees are calculated using integer division.
https://github.com/CodeHawks-Contests/ai-mycut/blob/819134663950999ca5ab29a91eeceddb80274743/src/Pot.sol#L54
Whenever
remainingRewards < 10
the fee becomes zero.
Example:
remainingRewards = 4
managerCut = 4 / 10 = 0
// Root cause in the codebase with @> marks to highlight the relevant section

Risk

Likelihood:

It is highly likely.

Impact:

Manager incentives disappear for small contests.
Protocol economics become inconsistent across reward sizes.
Small contests become effectively fee-free.
This is primarily an economic issue rather than a security vulnerability.

Proof of Concept

Observed during testing.
totalRewards = 4
After closure:
managerCut = 0
Contest manager balance remains unchanged.
function test_contestManagerZeroFee() public {
address contests;
uint256 contestManagerBalB4 = weth.balanceOf(address(_contestManager));
console.log("Contest Manager contract Initial Balance:", contestManagerBalB4);
vm.startPrank(owner);
contests = _contestManager.createContest(players, rewards, IERC20(ERC20Mock(weth)), 4);
_contestManager.fundContest(0);
vm.stopPrank();
vm.warp(100 days);
vm.startPrank(player2);
Pot(contests).claimCut();
vm.stopPrank();
vm.startPrank(owner);
_contestManager.closeContest(contests);
vm.stopPrank();
vm.startPrank(owner);
_contestManager.closeContest(contests);
vm.stopPrank();
/** uint256[] rewards = [3, 1];
uint256 totalRewards = 4;
rounds to zero contest mnager gets no fee*/
uint256 contestManagerBalAF = weth.balanceOf(address(_contestManager));
console.log("Contest Manager contract After closing:", contestManagerBalAF);
assertEq(contestManagerBalAF, contestManagerBalB4);
}

Recommended Mitigation

Calculate fees with higher precision if token decimals allow.
Accept the rounding behavior and clearly document it if intended
- remove this code
+ add this code
Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge 1 day ago
Submission Judgement Published
Validated
Assigned finding tags:

[L-03] [H-03] Precision loss can lead to rewards getting stuck in the pot forever

### \[H-03] Precision loss can lead to rewards getting stuck in the pot forever **Description:** When contest manager closes the pot by calling `Pot::closePot`, 10 percent of the remaining rewards are transferred to the contest manager and the rest are distributed equally among the claimants. It does this by dividing the rewards by the manager's cut percentage which is 10. Then the remaining rewards are divided by the number of players to distribute equally among claimants. Since solidity allows only integer division this will lead to precision loss which will cause a portion of funds to be left in the pot forever. Each pot follows the same method, so as number of pots grow, the loss of funds is very significant. **Impact:** Reward tokens get stuck in the pot forever which causes loss of funds. **Proof of code:** Add the below test to `test/TestMyCut.t.sol` ```javascript function testPrecisionLoss() public mintAndApproveTokens { ContestManager cm = ContestManager(conMan); uint playersLength = 3; address[] memory p = new address[](playersLength); uint256[] memory r = new uint256[](playersLength); uint tr = 86; p[0] = makeAddr("_player1"); p[1] = makeAddr("_player2"); p[2] = makeAddr("_player3"); r[0] = 20; r[1] = 23; r[2] = 43; vm.startPrank(user); address pot = cm.createContest(p, r, weth, tr); cm.fundContest(0); vm.stopPrank(); console.log("\n\ntoken balance in pot before: ", weth.balanceOf(pot)); vm.prank(p[1]); // player 2 Pot(pot).claimCut(); vm.prank(p[0]); // player 1 Pot(pot).claimCut(); vm.prank(user); vm.warp(block.timestamp + 90 days + 1); cm.closeContest(pot); console.log( "\n\ntoken balance in pot after closing pot: ", weth.balanceOf(pot) ); assert(weth.balanceOf(pot) != 0); } ``` Run the below test command in terminal ```Solidity forge test --mt testPrecisionLoss -vv ``` Which results in the below output ```Solidity [⠒] Compiling... [⠆] Compiling 1 files with 0.8.20 [⠰] Solc 0.8.20 finished in 2.57s Compiler run successful! Ran 1 test for test/TestMyCut.t.sol:TestMyCut [PASS] testPrecisionLoss() (gas: 936926) Logs: token balance in pot before: 86 token balance in pot after closing pot: 1 Suite result: ok. 1 passed; 0 failed; 0 skipped; finished in 1.75ms (654.60µs CPU time) Ran 1 test suite in 261.16ms (1.75ms CPU time): 1 tests passed, 0 failed, 0 skipped (1 total tests) ``` If you observe the output you can see the pot still has rewards despite distributing them to claimants. **Recommended Mitigations:** Fixed-Point Arithmetic: Utilize a fixed-point arithmetic library or implement a custom solution to handle fee calculations with greater precision.

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