MyCut

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

Manager cut in closePot sent to ContestManager contract which has no token withdrawal

In Pot.sol, the closePot function sends the manager's 10% cut to msg.sender on line 55: i_token.transfer(msg.sender, managerCut);

The closePot function has an onlyOwner modifier. The owner of each Pot is set to msg.sender in the constructor (line 7): contract Pot is Ownable(msg.sender)

Since Pot contracts are created by the ContestManager via new Pot(...) in createContest (line 22 of ContestManager.sol), the owner of every Pot is the ContestManager contract address.

When ContestManager calls pot.closePot() through _closeContest (line 59 of ContestManager.sol), msg.sender inside closePot is the ContestManager contract.

Therefore, i_token.transfer(msg.sender, managerCut) sends the manager cut to the ContestManager contract. However, ContestManager has no function to withdraw or rescue ERC20 tokens. The contract only has createContest, fundContest, closeContest, and view functions. None of these transfer tokens out of the ContestManager.

Risk
Every time a pot is closed with remaining unclaimed rewards, the manager's 10% cut is permanently locked inside the ContestManager contract. Over time, as more contests are created and closed, an increasing amount of tokens accumulates in ContestManager with no recovery mechanism.

This directly results in loss of funds for the protocol owner/admin, who is supposed to receive the manager cut as compensation for running the platform.

Proof of Concept
function testManagerCutLocked() public {
// Create and fund a contest
address pot = contestManager.createContest(players, rewards, token, 1000);
token.approve(address(contestManager), 1000);
contestManager.fundContest(0);

// Wait 90 days and close
vm.warp(block.timestamp + 91 days);
contestManager.closeContest(pot);
// Manager cut (10% of remaining) is now stuck in ContestManager
uint256 stuckTokens = token.balanceOf(address(contestManager));
assertGt(stuckTokens, 0); // TRUE — tokens locked forever
// No function exists to withdraw these tokens
// ContestManager has no withdraw(), rescue(), or transfer function

}
Mitigation
Option A — Add a withdrawal function to ContestManager:

function withdrawTokens(IERC20 token, uint256 amount) external onlyOwner {
token.transfer(msg.sender, amount);
}

Option B — Change closePot to accept a recipient address for the manager cut:

function closePot(address managerAddress) external onlyOwner {
// ...
i_token.transfer(managerAddress, managerCut);
// ...
}

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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