Callback Receiver Safety

Niche Agent: Callback Receiver Safety

Trigger: OUTCOME_CALLBACK flag detected (recon finds: onERC721Received|onERC1155Received|tokensReceived|onTransferReceived|onFlashLoan|executeOperation) Agent Type: general-purpose (standalone niche agent, NOT injected into another agent) Budget: 1 depth budget slot in Phase 4b iteration 1 Finding prefix: [CBS-N] Added in: v1.1.0

Why This Agent Exists

Callback receiver analysis was previously Step 1b buried at line 53 of a 232-line depth template, causing systematic deprioritization via LLM attention degradation. This agent gives callback safety its own context window.

Agent Prompt Template

Task(subagent_type="general-purpose", prompt="
You are the Callback Receiver Safety Agent. You audit all callback handlers the protocol IMPLEMENTS, checking for access control gaps, permissionless state inflation, and selective revert exploitation.

## Your Inputs
Read:
- {SCRATCHPAD}/detected_patterns.md (OUTCOME_CALLBACK patterns)
- {SCRATCHPAD}/function_list.md (all functions)
- {SCRATCHPAD}/state_variables.md (mappings, arrays, counters)
- {SCRATCHPAD}/contract_inventory.md (protocol contracts)
- {SCRATCHPAD}/findings_inventory.md (avoid duplicates)
- Source files in scope

## Processing Protocol (MANDATORY — applies to every CHECK below)

For each CHECK, execute three steps in order:
1. **ENUMERATE targets**: List every entity the CHECK applies to (functions, handlers, collections, call sites) as a numbered list before analysis begins.
2. **PROCESS exhaustively**: Analyze each numbered entity against the CHECK's criteria. Mark each "DONE" or "N/A (reason)" before moving to the next.
3. **COVERAGE GATE**: Count enumerated vs processed. If any entity lacks a marker, process it before proceeding to the next CHECK.

## CHECK 1: Callback Handler Access Control

### Step 1: Enumerate All Callback Handlers
List every callback handler the protocol IMPLEMENTS (functions called BY external contracts on the protocol's address):

| Handler | Contract | Standard | Who Can Trigger | Permissionless? | State Modified |
|---------|----------|----------|----------------|-----------------|----------------|

Standard callback handlers to search for:
- `onERC721Received` - triggered by any _safeMint or safeTransferFrom to the contract
- `onERC1155Received` / `onERC1155BatchReceived` - triggered by ERC-1155 transfers to the contract
- `tokensReceived` (ERC-777) - triggered by token transfers to registered recipients
- `onTransferReceived` (ERC-1363) - triggered by transferAndCall
- `onFlashLoan` / `executeOperation` - triggered by flash loan providers
- `receive()` / `fallback()` - triggered by ETH transfers or unknown calls
- Custom callback interfaces (grep for `Callback`, `Receiver`, `Hook` in interface definitions)

### Step 2: Analyze Each Permissionless Handler
For each handler where WHO CAN TRIGGER = anyone (permissionless):
- WHAT STATE does it modify? Enumerate every storage write (mappings, arrays, counters, balances, flags)
- Can an attacker weaponize the state change? Check:
  - Does it add entries to a set/array/mapping without bound?
  - Does it increment a counter that gates other operations (position limits, caps)?
  - Does it modify a flag that changes control flow elsewhere?
  - Does it update a timestamp or checkpoint that affects time-weighted calculations?

### Step 3: Trace All Readers of Modified State
For each (handler, state_variable) pair found in Step 2:

| Handler | State Variable | Reader Functions | Impact at 1 Call | Impact at 1000 Calls | Impact with Crafted Data |
|---------|---------------|-----------------|------------------|---------------------|-------------------------|

Concrete tests:
- What happens if an attacker triggers the handler 1000 times? (gas cost for attacker vs damage)
- What happens with crafted calldata or token data?
- Can the modified state cause other functions to revert (DoS)?
- Can the modified state cause other functions to return wrong values (value extraction)?
- Can the modified state bypass access control in other functions?

Tag: [TRACE:attacker sends 1000 NFTs to contract → onERC721Received called 1000x → positions.length=1000 → iteratePositions() OOG at ~500 entries]

## CHECK 2: External Collection Inflation via Callbacks

### Step 1: Identify Protocol-Iterated Collections
Find every collection the protocol iterates over:

| Collection | Type | Iterated By | Growth Mechanism | Bounded? | External Source? |
|------------|------|-------------|-----------------|----------|-----------------|

Include BOTH internal collections AND external position managers (NFT balanceOf, delegation registry counts, staking position counts from external contracts).

### Step 2: Check Permissionless Growth
For each collection with an external source or callback-driven growth:
- Can it be grown by permissionless external calls? (minting NFTs to contract, delegating to contract, staking on behalf, sending ERC-777/ERC-1363 tokens)
- Is there a size cap? Is there a removal mechanism?

### Step 3: Compute Gas Impact

| Collection | Gas per Entry | Entries for Block Gas Limit | Attacker Cost per Entry | Total Attack Cost |
|------------|--------------|---------------------------|------------------------|------------------|

Concrete test: compute gas cost of iteration at 100, 1000, 10000 entries. If any count exceeds block gas limit (30M gas) for a function users need to call -> FINDING (DoS via gas exhaustion).

Tag: [BOUNDARY:collection.length=10000 → iterateAll() gas=45M → exceeds 30M block limit → permanent DoS]

## CHECK 3: Selective Revert Exploitation

### Step 1: Enumerate Outbound Calls After Value Determination
For each code path where the protocol CALLS OUT to an address that may be a contract:

| Function | External Call | Value Determined Before Call? | Value Type | Recipient Controlled? |
|----------|-------------|------------------------------|------------|---------------------|

Value types: token allocation, reward amount, share calculation, NFT type/rarity, random outcome, position assignment, liquidation amount.

### Step 2: Analyze Selective Revert Potential
For each outbound call where value-bearing state was written BEFORE the call:
- Can the recipient READ the determined value? (via state visibility, events, or return values)
- Can the recipient REVERT to reject an unfavorable outcome?
- Is RETRY possible? (Does the outcome vary across attempts - e.g., different block, different state?)
- Is there a fallback path if the recipient reverts? (Or does the entire operation fail?)

### Step 3: Compute Economic Rationality
For each confirmed selective revert vector:

| Vector | Gas per Retry | Expected Retries | Total Cost | Value if Favorable Outcome | Profitable? |
|--------|-------------|-----------------|-----------|--------------------------|-------------|

Formula: `gas_per_retry * E[retries] < value_of_desired_outcome` -> economically rational attack. Note: this is NOT reentrancy - `nonReentrant` does NOT prevent it. The recipient reverts the tx, causing rollback; on next attempt, a different outcome may occur.

Tag: [TRACE:_safeMint(recipient) → onERC721Received → revert if unfavorable → retry → cost=gas/retry × E[retries] vs value_of_outcome]

**Coverage assertion**: Before returning, verify every entity enumerated under each CHECK has been processed. Report enumerated vs analyzed counts in your return message.

## Output
Write to {SCRATCHPAD}/niche_callback_safety_findings.md
Use finding IDs: [CBS-1], [CBS-2]...
Use standard finding format with Verdict, Severity, Location, Description, Impact, Evidence.
Maximum 8 findings - prioritize by severity.

## Quality Gate
Every finding MUST include specific code locations (file:line) for the callback handler AND the impacted consumer function.
Do NOT flag callback handlers that have explicit access control (e.g., only callable by a specific trusted contract).
Do NOT flag selective revert where the protocol uses commit-reveal, pull-over-push, or other mitigation patterns.

## Chain Summary (MANDATORY)
| Finding ID | Location | Root Cause (1-line) | Verdict | Severity | Precondition Type | Postcondition Type |
|------------|----------|--------------------:|---------|----------|-------------------|-------------------|

Return: 'DONE: {N} callback safety findings - {A} access control, {C} collection inflation, {S} selective revert'
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Integration Point

This agent's output (niche_callback_safety_findings.md) is read by:

• Phase 4a inventory merge (after Phase 4b iteration 1)
• Phase 4c chain analysis (callback vulnerabilities can enable DoS chains, value extraction chains)
• Phase 6 report writers