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, which has no token-withdrawal function, permanently locking the cut

Description

Normal behavior: on close, the manager (the trusted admin) should receive their cut of the remaining pool.

Specific issue: each Pot is created inside ContestManager.createContest via new Pot(...), so the Pot's owner is the ContestManager CONTRACT, not the admin EOA. closePot is onlyOwner, so it can only be reached through ContestManager.closeContest -> _closeContest -> pot.closePot(), which means inside closePot, msg.sender == ContestManager. The manager cut is therefore transferred to the ContestManager contract:

// Pot.sol
i_token.transfer(msg.sender, managerCut); // @> msg.sender is the ContestManager contract

ContestManager has no function that transfers ERC20 tokens out of itself (only createContest, fundContest, closeContest, and view getters), so the received cut is stranded.

Risk

Likelihood:

  • Occurs on every closePot with a non-zero remainder.

Impact:

  • The manager's cut is permanently locked in the ContestManager contract with no recovery path, defeating the documented "manager takes a cut" mechanic and locking protocol funds.

Proof of Concept

After closeContest, the manager cut lands in the ContestManager address, and there is no method to move it out; the test shows the token balance accrues on ContestManager and remains there.

function test_ManagerCutStuckInContestManager() public {
// ...players partially claim, warp 90 days...
contest.closeContest(address(pot));
assertGt(token.balanceOf(address(contest)), 0); // manager cut sits in ContestManager
// ContestManager exposes no token-out function -> unrecoverable
}

Recommended Mitigation

Pass the intended manager/admin recipient explicitly and transfer the cut there, or add an owner-only token-sweep to ContestManager.

- // Pot.sol
- i_token.transfer(msg.sender, managerCut);
+ // Pot.sol: send the cut to a stored admin recipient (set at construction)
+ i_token.transfer(i_manager, managerCut);

Alternatively add function sweep(IERC20 t) external onlyOwner { t.transfer(owner(), t.balanceOf(address(this))); } to ContestManager.

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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