MyCut

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

The manager cut in closePot() is paid to the ContestManager contract itself, where it is locked forever, instead of to the owner

Root + Impact

Pot.closePot() sends the manager cut to msg.sender. But a Pot's owner is the ContestManager contract (it deploys the Pot), and the only way to trigger closePot is ContestManager.closeContest, so at the moment of the transfer msg.sender is the ContestManager contract, not the human manager who is supposed to "take a cut". ContestManager exposes no function to withdraw or forward ERC20 tokens, so every pot's manager cut accumulates inside the ContestManager contract and can never be recovered by anyone. The documented headline feature of the closing flow, the manager's 10%, pays out to a dead end on every single contest.

Description

// src/Pot.sol
function closePot() external onlyOwner {
...
if (remainingRewards > 0) {
uint256 managerCut = remainingRewards / managerCutPercent;
// @> i_token.transfer(msg.sender, managerCut); // msg.sender == ContestManager contract
...
}
}
​
// src/ContestManager.sol: the only caller path
function _closeContest(address contest) internal {
Pot pot = Pot(contest);
pot.closePot(); // from the manager contract, so the cut lands here and is stuck
}

Risk

Likelihood: High - happens on every closed contest, through the intended flow, with no special conditions.
Impact: Medium - 10% of every pot's remainder is permanently locked in the ContestManager contract instead of reaching the manager; across many contests this is a growing, unrecoverable balance, and it silently defeats the protocol's stated fee model.

Proof of Concept

Verified with Foundry (test passes). After a normal close of a 100-token pot with 75 remaining, the owner's token balance is unchanged (they only spent the funding), while the ContestManager contract's balance holds the 7.5-token cut, with no function anywhere able to move it out.

assertEq(token.balanceOf(owner), 1_000e18 - TOTAL); // owner received nothing
assertEq(token.balanceOf(address(manager)), 7.5e18); // cut locked in the contract

Recommended Mitigation

Pay the cut to the ContestManager's owner (or make ContestManager forward it), e.g. have closePot transfer to a stored manager/owner address passed at construction, or add an owner-only token sweep to ContestManager and a documented withdrawal flow.

Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 3 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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