MyCut

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

The Manager Cut is Permanently Locked due to a lack of a Withdraw function

Root + Impact

The ContestManager is the owner of every Pot it creates. When closePot() is called, it sends the managerCut to msg.sender (the ContestManager contract). However, ContestManager has no function to withdraw tokens, meaning the manager's 10% cut is permanently bricked inside the manager contract.

Description

  • In Pot.sol, the owner is set in the constructor: contract Pot is Ownable(msg.sender) { ... }

    In ContestManager.sol, the pot is created here: Pot pot = new Pot(players, rewards, token, totalRewards);


  • Because the ContestManager is the msg.sender during deployment, it is the owner of the Pot. When closeContest is called:

    1. ContestManager calls pot.closePot().

    2. Pot executes i_token.transfer(msg.sender, managerCut);.

    3. The msg.sender here is the ContestManager address.

    4. Tokens arrive at ContestManager.

    5. There is no withdraw() or claim() function in ContestManager.

// Root cause in the codebase with @> marks to highlight the relevant section

Risk

Likelihood:

  • This will happen every time a contest is closed.

Impact:

  • 10% of every single contest's remaining rewards will be lost forever.

Proof of Concept

1. Admin deploys ContestManager.
2. Admin calls createContest(...) with totalRewards = 1,000 USDC.
3. Admin calls fundContest(0). The Pot now has 1,000 USDC.
4. 90 days pass. No one claims.
5. Admin calls ContestManager.closeContest(potAddress).
6. ContestManager executes pot.closePot().
7. Inside Pot.closePot(), the managerCut is calculated: $1,000 / 10 = 100$.
8. The Pot executes i_token.transfer(msg.sender, 100):
8a. Since ContestManager made the call, msg.sender is the ContestManager Address.
9. 100 USDC is moved from the Pot to the ContestManager.
10. ContestManager USDC Balance: 100.
11. Admin tries to retrieve the 100 USDC from ContestManager.
Result: There is no function in the ContestManager code to transfer tokens out.
The 100 USDC is permanently bricked.

Recommended Mitigation

Add a withdrawal function to ContestManager or change how the Pot defines the recipient of the manager cut.

// Add to ContestManager.sol
++ function withdrawTokens(IERC20 token, uint256 amount) external onlyOwner {
++ token.transfer(msg.sender, amount); }
Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 2 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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