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Moderate 59 Bitcoin

contractcourt: make breach retribution final-taproot aware

Public commit record

What the developer wrote

Authored by yyforyongyu

50/100 · Thin
contractcourt: make breach retribution final-taproot aware
✓ Specific, descriptive subject✓ Names a concrete action or component! No meaningful explanatory body
The short version

What changed, and why it matters

This commit updates LND's breach-arbitrator (the component that punishes a counterparty for broadcasting an old channel state) so it correctly handles a new 'final taproot' channel type. Previously, the arbitrator likely treated final-taproot outputs as ordinary taproot or non-taproot outputs, which could have caused it to use the wrong witness type, skip control-block handling, miscount revoked funds, or fail to sweep funds after a breach. The patch adds the new witness-type constants everywhere the old taproot variants were used and adds tests to confirm the new paths work.

Recommended action

Treat this as a functional correctness fix that has security implications for final-taproot channels. Operators running final-taproot channels should upgrade before any counterparty breach attempt. Review related witness-type switch statements elsewhere in the codebase for similar omissions of the final-taproot variants.

Security signals we found

01

New channel type (final taproot) not previously handled by breach retribution logic

02

Wrong witness type could prevent successful justice transaction construction

03

Missing control-block persistence could break re-spending after restart

04

Revoked-funds tally omission could under-report or skip final-taproot penalties

05

CSV maturity mismatch could cause premature or delayed sweep attempts

Risk score

Why this scored 59/100

Our methodology →
Potential impact 18/30
Exploitability 12/25
Stealth signal 8/15
Affected reach 10/15
Confidence 7/10
Evidence quality 4/5
Human-validated context

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