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Implemented Dynamic Fee Capping to Prevent Overflow in Treasury #640

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soomtochukwu merged 1 commit into from
May 29, 2026
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Implemented Dynamic Fee Capping to Prevent Overflow in Treasury #640

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235 changes: 119 additions & 116 deletions contracts/escrow/src/lib.rs
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Original file line number Diff line number Diff line change
Expand Up @@ -49,7 +49,7 @@ impl EscrowStatus {
(EscrowStatus::WorkInProgress, EscrowStatus::Refunded) => Ok(()),
(EscrowStatus::Disputed, EscrowStatus::Resolved) => Ok(()),
(EscrowStatus::Disputed, EscrowStatus::Refunded) => Ok(()),
_ => Err(EscrowError::InvalidStateTransition),
_ => Err(EscrowError::InvalidState),
}
}
}
Expand Down Expand Up @@ -106,8 +106,6 @@ pub enum DataKey {
FeeBps,
MultisigConfig(u64), // Per-job multisig configuration
UpgradeAdmin,
Treasury,
FeeBps,
}

#[contracttype]
Expand Down Expand Up @@ -183,6 +181,7 @@ pub enum EscrowError {
JobRegistrySyncFailed = 9,
UpgradeUnauthorized = 10,
ReentrantCall = 11,
FeeTooHigh = 12,
}

/// Maximum platform fee, in basis points (100% = 10_000 bps).
Expand Down Expand Up @@ -290,41 +289,6 @@ pub struct DisputeExpiredEvent {
pub expired_at: u64,
}

#[contracttype]
#[derive(Clone)]
pub struct FeeConfigUpdatedEvent {
pub treasury: Address,
pub fee_bps: u32,
pub updated_at: u64,
}

#[contracttype]
#[derive(Clone)]
pub struct LockupUpdatedEvent {
pub job_id: u64,
pub expires_at: u64,
pub updated_at: u64,
}

#[contracttype]
#[derive(Clone)]
pub struct EmergencySweepEvent {
pub job_id: u64,
pub admin: Address,
pub rescue_address: Address,
pub amount: i128,
pub swept_at: u64,
}

#[contracttype]
#[derive(Clone)]
pub struct MilestonesAmendedEvent {
pub job_id: u64,
pub milestone_count: u32,
pub remaining_amount: i128,
pub amended_at: u64,
}

struct ReentrancyGuard<'a> {
env: &'a Env,
}
Expand All @@ -337,7 +301,7 @@ impl Drop for ReentrancyGuard<'_> {

fn enter_reentrancy_guard(env: &Env) -> ReentrancyGuard<'_> {
if env.storage().instance().has(&DataKey::Locked) {
panic_with_error!(env, EscrowError::ReentrancyDetected);
panic_with_error!(env, EscrowError::ReentrantCall);
}
env.storage().instance().set(&DataKey::Locked, &());
ReentrancyGuard { env }
Expand Down Expand Up @@ -645,19 +609,15 @@ fn checked_sub_i128(
return Err(EscrowError::InvalidInput);
}
let now: u64 = env.ledger().timestamp();
let expires_duration = 30u64
.checked_mul(24)
.and_then(|h| h.checked_mul(60))
.and_then(|m| m.checked_mul(60))
let expires_duration = 30u64
.checked_mul(24)
.and_then(|h| h.checked_mul(60))
.and_then(|m| m.checked_mul(60))
.ok_or(EscrowError::ArithmeticError)?;

let expires_at = now
.checked_add(expires_duration)
.ok_or(EscrowError::ArithmeticError)?;
let expires_duration = 30u64
.checked_mul(24)
.and_then(|h| h.checked_mul(60))
.and_then(|m| m.checked_mul(60))
.ok_or(EscrowError::InvalidInput)?;

let expires_at = now
.checked_add(expires_duration)
.ok_or(EscrowError::InvalidInput)?;

let job = EscrowJob {
client: client.clone(),
Expand Down Expand Up @@ -843,7 +803,7 @@ let expires_at = now
let _guard = enter_reentrancy_guard(&env);
env.storage().persistent().set(&key, &job);

Self::payout_with_fee(&env, &job, milestone.amount);
Self::payout_with_fee(&env, job_id, &job, milestone.amount)?;

log!(
&env,
Expand Down Expand Up @@ -929,7 +889,7 @@ if milestone_index >= job.milestones.len() {
let _guard = enter_reentrancy_guard(&env);
env.storage().persistent().set(&key, &job);

Self::payout_with_fee(&env, &job, milestone.amount);
Self::payout_with_fee(&env, job_id, &job, milestone.amount)?;

log!(
&env,
Expand All @@ -940,6 +900,8 @@ if milestone_index >= job.milestones.len() {
env.storage().persistent().set(&key, &job);
Self::bump_job_ttl(&env, &key);
Self::exit_job_lock(&env, lock_key);

Ok(())
}

/// Either party opens a dispute, locking remaining funds.
Expand Down Expand Up @@ -1021,11 +983,11 @@ if !(job.status == EscrowStatus::Funded
.checked_mul(24)
.and_then(|h| h.checked_mul(60))
.and_then(|m| m.checked_mul(60))
.ok_or(EscrowError::ArithmeticError)?;
.ok_or(EscrowError::InvalidInput)?;
let expiration_threshold = job
.expires_at
.checked_add(grace_period)
.ok_or(EscrowError::ArithmeticError)?;
.ok_or(EscrowError::InvalidInput)?;
if now > expiration_threshold {
return Err(EscrowError::InvalidState);
}
Expand Down Expand Up @@ -1256,7 +1218,7 @@ if !(job.status == EscrowStatus::Funded
let job = Self::get_job(env, job_id)?;
job.total_amount
.checked_sub(job.released_amount)
.ok_or(EscrowError::ArithmeticError)
.ok_or(EscrowError::InvalidInput)
}

pub fn get_admin(env: Env) -> Address {
Expand Down Expand Up @@ -1638,28 +1600,71 @@ exit_reentrancy_guard(&env);
.unwrap_or(0u32)
}

fn payout_with_fee(env: &Env, job: &EscrowJob, amount: i128) {
fn compute_fee_amount(amount: i128, fee_bps: u32) -> Result<i128, EscrowError> {
if fee_bps == 0 {
return Ok(0);
}
if fee_bps > MAX_FEE_BPS {
return Err(EscrowError::FeeTooHigh);
}

let unit = amount
.checked_div(10_000)
.ok_or(EscrowError::InvalidInput)?;
let remainder = amount
.checked_rem(10_000)
.ok_or(EscrowError::InvalidInput)?;

let base_fee = unit
.checked_mul(fee_bps as i128)
.ok_or(EscrowError::InvalidInput)?;
let remainder_fee = remainder
.checked_mul(fee_bps as i128)
.ok_or(EscrowError::InvalidInput)?
.checked_div(10_000)
.ok_or(EscrowError::InvalidInput)?;

let fee_amount = base_fee
.checked_add(remainder_fee)
.ok_or(EscrowError::InvalidInput)?;

Ok(if fee_amount > amount { amount } else { fee_amount })
}

fn payout_with_fee(
env: &Env,
_job_id: u64,
job: &EscrowJob,
amount: i128,
) -> Result<(), EscrowError> {
let treasury = env.storage().instance().get::<_, Address>(&DataKey::Treasury);
let fee_bps = Self::fee_bps(env);
let fee_amount = if fee_bps > 0 {
amount
.checked_mul(fee_bps as i128)
.and_then(|value| value.checked_div(10_000))
.unwrap_or(0)
let fee_amount = if fee_bps > 0 && fee_bps <= MAX_FEE_BPS {
Self::compute_fee_amount(amount, fee_bps)?
} else {
0
};
let payout_amount = amount.checked_sub(fee_amount).unwrap_or(0);
let payout_amount = amount.checked_sub(fee_amount).ok_or(EscrowError::InvalidInput)?;
let token_client = token::Client::new(env, &job.token);

if fee_amount > 0 {
if let Some(treasury_addr) = treasury {
token_client.transfer(&env.current_contract_address(), &treasury_addr, &fee_amount);
token_client.transfer(
&env.current_contract_address(),
&treasury_addr,
&fee_amount,
);
}
}
if payout_amount > 0 {
token_client.transfer(&env.current_contract_address(), &job.freelancer, &payout_amount);
token_client.transfer(
&env.current_contract_address(),
&job.freelancer,
&payout_amount,
);
}

Ok(())
}

fn exit_reentrancy_guard(env: &Env) {
Expand Down Expand Up @@ -1873,56 +1878,6 @@ exit_reentrancy_guard(&env);

Ok(())
}

fn fee_bps(env: &Env) -> u32 {
env.storage().instance().get(&DataKey::FeeBps).unwrap_or(0)
}

fn payout_with_fee(
env: &Env,
_job_id: u64,
job: &EscrowJob,
amount: i128,
) {
let treasury_opt: Option<Address> = env.storage().instance().get(&DataKey::Treasury);
let fee_bps = Self::fee_bps(env);
let token_client = token::Client::new(env, &job.token);

if let Some(treasury) = treasury_opt {
if fee_bps > 0 && fee_bps <= 10_000 {
// fee_amount = amount * fee_bps / 10_000
let fee_amount = amount
.checked_mul(fee_bps as i128)
.unwrap()
.checked_div(10_000)
.unwrap();
let freelancer_amount = amount.checked_sub(fee_amount).unwrap();

if fee_amount > 0 {
token_client.transfer(
&env.current_contract_address(),
&treasury,
&fee_amount,
);
}
if freelancer_amount > 0 {
token_client.transfer(
&env.current_contract_address(),
&job.freelancer,
&freelancer_amount,
);
}
return;
}
}

// Default: no fee or fee is 0 or treasury not configured
token_client.transfer(
&env.current_contract_address(),
&job.freelancer,
&amount,
);
}
}

#[cfg(test)]
Expand Down Expand Up @@ -2844,6 +2799,54 @@ mod test {
cc.release_milestone(&1u64, &client);
}

#[test]
#[should_panic]
fn test_set_fee_config_rejects_fee_above_maximum() {
let env = Env::default();
env.mock_all_auths();

let admin = Address::generate(&env);
let agent_judge = Address::generate(&env);
let treasury = Address::generate(&env);

let contract_id = env.register_contract(None, EscrowContract);
let cc = EscrowContractClient::new(&env, &contract_id);

cc.initialize(&admin, &agent_judge);
cc.set_fee_config(&treasury, &(MAX_FEE_BPS + 1));
}

#[test]
fn test_release_milestone_large_amount_with_max_fee_does_not_overflow() {
let env = Env::default();
env.mock_all_auths();

let admin = Address::generate(&env);
let agent_judge = Address::generate(&env);
let client = Address::generate(&env);
let freelancer = Address::generate(&env);
let treasury = Address::generate(&env);

let token_addr = setup_token(&env, &admin);
mint(&env, &token_addr, &client);

let contract_id = env.register_contract(None, EscrowContract);
let cc = EscrowContractClient::new(&env, &contract_id);

cc.initialize(&admin, &agent_judge);
cc.set_fee_config(&treasury, &MAX_FEE_BPS);

cc.create_job(&1u64, &client, &freelancer, &token_addr);
cc.add_milestone(&1u64, &10_000_000_000i128);
cc.deposit(&1u64, &10_000_000_000i128);

cc.release_milestone(&1u64, &client);

let job = cc.get_job(&1u64);
assert_eq!(job.released_amount, 10_000_000_000i128);
assert_eq!(job.status, EscrowStatus::Completed);
}

// ΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇ
// Comprehensive Escrow Dispute & Resolution Tests (>90% coverage)
// ΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇΓöÇ
Expand Down
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