MyCut

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

Manager cut is sent to the ContestManager contract (the Pot owner), which has no withdrawal function, so the manager's cut is permanently locked

Root + Impact

Description

The 10% manager cut is meant to be the manager's payment for running the contest, but it is sent to an address that can never spend it.

Pot is declared contract Pot is Ownable(msg.sender), and every Pot is deployed inside ContestManager.createContest() via new Pot(...). So the Pot's owner is the ContestManager contract, not the human admin.

closePot() is onlyOwner, so it can only be invoked by ContestManager (through closeContest()), and it pays the cut to msg.sender:

// Pot.sol
function closePot() external onlyOwner {
...
uint256 managerCut = remainingRewards / managerCutPercent;
@> i_token.transfer(msg.sender, managerCut); // msg.sender == ContestManager
...
}

The cut lands in ContestManager, which has no function anywhere that transfers its token balance out (only createContest, fundContest, the getters, and closeContest). The manager cut is therefore permanently locked and the protocol's core monetization feature never pays out.

Risk

Likelihood: High - happens on every closePot() where remainingRewards > 0 at close, the expected path whenever any rewards go unclaimed.

Impact: High - the entire manager cut is irrecoverable on every contest. Permanent loss of protocol revenue with no recovery path.

Proof of Concept

Only player1 claims, leaving 500 for the close-time distribution. After closeContest, the 50-token manager cut sits in ContestManager (the Pot owner) with no way to withdraw it. Runnable Foundry test (drop into test/TestMyCut.t.sol):

function test_PoC_managerCutLockedInContestManager() public mintAndApproveTokens {
vm.startPrank(user);
rewards = [500, 500];
totalRewards = 1000;
contest = ContestManager(conMan).createContest(players, rewards, IERC20(ERC20Mock(weth)), totalRewards);
ContestManager(conMan).fundContest(0);
vm.stopPrank();
// only player1 claims -> 500 remains for the close-time distribution
vm.prank(player1);
Pot(contest).claimCut();
vm.warp(91 days);
vm.prank(user);
ContestManager(conMan).closeContest(contest);
// Pot.owner() is the ContestManager, so closePot's msg.sender is conMan;
// managerCut (500/10 = 50) is sent to conMan, which has NO withdraw function.
assertEq(Pot(contest).owner(), conMan);
assertEq(ERC20Mock(weth).balanceOf(conMan), 50); // manager cut stranded, unrecoverable
}

Run forge test --mt test_PoC_managerCutLockedInContestManager -vv; it passes, proving the 50-token cut is trapped in ContestManager.

Recommended Mitigation

Pay the cut to a configurable manager/treasury address instead of msg.sender, or add a withdraw function to ContestManager.

// Pot.sol - pay an explicit manager address set at construction
- i_token.transfer(msg.sender, managerCut);
+ i_token.transfer(i_manager, managerCut);

or

// ContestManager.sol - let the owner withdraw accumulated cuts
+ function withdraw(IERC20 token, uint256 amount) external onlyOwner {
+ token.transfer(owner(), 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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