MyCut

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

Manager cut is transferred to `ContestManager` and becomes permanently stuck

Title*: Manager cut is transferred to ContestManager and becomes permanently stuck

Severity: High

Scope Affected:

  • src/ContestManager.sol

  • ContestManager.closeContest()

  • ContestManager._closeContest()

  • src/Pot.sol

  • Pot.closePot()

Root + Impact

Description

The normal behavior is that the manager/admin should receive a cut of the unclaimed reward pool when a contest is closed.

The issue is that Pot.closePot() transfers the manager cut to msg.sender. Because pots are closed through ContestManager.closeContest(), msg.sender inside Pot.closePot() is the ContestManager contract, not the admin. ContestManager has no function to withdraw those tokens, so the manager cut is stuck.

function closeContest(address contest) public onlyOwner {
_closeContest(contest);
}
function _closeContest(address contest) internal {
Pot pot = Pot(contest);
@> pot.closePot();
}
function closePot() external onlyOwner {
...
uint256 managerCut = remainingRewards / managerCutPercent;
@> i_token.transfer(msg.sender, managerCut);
...
}

Risk

Likelihood:

  • This occurs whenever the owner closes a contest through ContestManager.closeContest().

  • This occurs for every pot created by ContestManager because the pot owner is ContestManager.

Impact:

  • The manager/admin never receives the intended manager cut.

  • The cut is locked in ContestManager because there is no token withdrawal function.

Proof of Concept

function testManagerCutIsLockedInContestManager() public {
address[] memory players = new address[](2);
players[0] = player1;
players[1] = player2;
uint256[] memory rewards = new uint256[](2);
rewards[0] = 500 ether;
rewards[1] = 500 ether;
vm.startPrank(admin);
address contest = manager.createContest(players, rewards, IERC20(token), 1_000 ether);
manager.fundContest(0);
vm.stopPrank();
vm.prank(player1);
Pot(contest).claimCut();
vm.warp(block.timestamp + 91 days);
vm.prank(admin);
manager.closeContest(contest);
assertEq(token.balanceOf(address(manager)), 50 ether);
}

The 50 ether manager cut is held by ContestManager, not the admin.

Recommended Mitigation

- i_token.transfer(msg.sender, managerCut);
+ i_token.transfer(Ownable(msg.sender).owner(), managerCut);

A cleaner approach is to store the intended manager recipient in Pot during construction:

+ address private immutable i_manager;
- constructor(address[] memory players, uint256[] memory rewards, IERC20 token, uint256 totalRewards) {
+ constructor(address[] memory players, uint256[] memory rewards, IERC20 token, uint256 totalRewards, address manager) {
+ i_manager = manager;
...
}
- i_token.transfer(msg.sender, managerCut);
+ i_token.transfer(i_manager, managerCut);
Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 6 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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