From 50685410443dd11a588e55610936b7eb7c832f34 Mon Sep 17 00:00:00 2001
From: bryanvu <bryanvu@gmail.com>
Date: Wed, 31 May 2017 22:09:03 -0700
Subject: [PATCH] lnwallet: apply dust HTLC amounts to fees
MIME-Version: 1.0
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If an HTLC’s value is below a node’s dust limit, the amount for that
HTLC should be applied to to the fee used for the channel’s commitment
transaction.
---
 lnwallet/channel.go      |  7 ++++--
 lnwallet/channel_test.go | 54 ++++++++++++++++++++++++++++++++++++++++
 2 files changed, 59 insertions(+), 2 deletions(-)

diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 38a51272..554bc92e 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -1307,7 +1307,7 @@ func (lc *LightningChannel) fetchCommitmentView(remoteChain bool,
 	//  * tally in separate accumulator, subtract from fee amount
 	//  * when dumping fees back into initiator output, only dumb explicit
 	//    fee
-	var dustLimit btcutil.Amount
+	var dustLimit, dustFees btcutil.Amount
 	if remoteChain {
 		dustLimit = lc.channelState.TheirDustLimit
 	} else {
@@ -1316,12 +1316,14 @@ func (lc *LightningChannel) fetchCommitmentView(remoteChain bool,
 	numHTLCs := 0
 	for _, htlc := range filteredHTLCView.ourUpdates {
 		if htlc.Amount < dustLimit {
+			dustFees += htlc.Amount
 			continue
 		}
 		numHTLCs++
 	}
 	for _, htlc := range filteredHTLCView.theirUpdates {
 		if htlc.Amount < dustLimit {
+			dustFees += htlc.Amount
 			continue
 		}
 		numHTLCs++
@@ -1332,7 +1334,8 @@ func (lc *LightningChannel) fetchCommitmentView(remoteChain bool,
 	// by the current fee-per-kw, then divide by 1000 to get the proper
 	// fee.
 	totalCommitWeight := commitWeight + btcutil.Amount(htlcWeight*numHTLCs)
-	commitFee := (lc.channelState.FeePerKw * totalCommitWeight) / 1000
+	commitFee := lc.channelState.FeePerKw * totalCommitWeight / 1000
+	commitFee -= dustFees
 
 	// Currently, within the protocol, the initiator always pays the fees.
 	// So we'll subtract the fee amount from the balance of the current
diff --git a/lnwallet/channel_test.go b/lnwallet/channel_test.go
index 535f03a9..4a11cc3e 100644
--- a/lnwallet/channel_test.go
+++ b/lnwallet/channel_test.go
@@ -932,6 +932,60 @@ func TestForceClose(t *testing.T) {
 	}
 }
 
+// TestDustHTLCFees checks that fees are calculated correctly when HTLCs fall
+// below the nodes' dust limit. In these cases, the amount of the dust HTLCs
+// should be applied to the commitment transaction fee.
+func TestDustHTLCFees(t *testing.T) {
+	createHTLC := func(data, amount btcutil.Amount) (*lnwire.UpdateAddHTLC,
+		[32]byte) {
+		preimage := bytes.Repeat([]byte{byte(data)}, 32)
+		paymentHash := sha256.Sum256(preimage)
+
+		var returnPreimage [32]byte
+		copy(returnPreimage[:], preimage)
+
+		return &lnwire.UpdateAddHTLC{
+			PaymentHash: paymentHash,
+			Amount:      amount,
+			Expiry:      uint32(5),
+		}, returnPreimage
+	}
+
+	// Create a test channel which will be used for the duration of this
+	// unittest. The channel will be funded evenly with Alice having 5 BTC,
+	// and Bob having 5 BTC.
+	aliceChannel, bobChannel, cleanUp, err := createTestChannels(3)
+	if err != nil {
+		t.Fatalf("unable to create test channels: %v", err)
+	}
+	defer cleanUp()
+
+	// This HTLC amount should be lower than the dust limits of both nodes.
+	htlcAmount := btcutil.Amount(100)
+	htlc, _ := createHTLC(0, htlcAmount)
+	if _, err := aliceChannel.AddHTLC(htlc); err != nil {
+		t.Fatalf("alice unable to add htlc: %v", err)
+	}
+	if _, err := bobChannel.ReceiveHTLC(htlc); err != nil {
+		t.Fatalf("bob unable to receive htlc: %v", err)
+	}
+	if err := forceStateTransition(aliceChannel, bobChannel); err != nil {
+		t.Fatalf("Can't update the channel state: %v", err)
+	}
+
+	defaultFee := calcStaticFee(0)
+	if aliceChannel.channelState.CommitFee != defaultFee-htlcAmount {
+		t.Fatalf("dust htlc amounts not subtracted from commitment fee "+
+			"expected %v, got %v", defaultFee-htlcAmount,
+			aliceChannel.channelState.CommitFee)
+	}
+	if bobChannel.channelState.CommitFee != defaultFee-htlcAmount {
+		t.Fatalf("dust htlc amounts not subtracted from commitment fee "+
+			"expected %v, got %v", defaultFee-htlcAmount,
+			bobChannel.channelState.CommitFee)
+	}
+}
+
 // TestCheckDustLimit checks that unsettled HTLC with dust limit not included in
 // commitment transaction as output, but sender balance is decreased (thereby all
 // unsettled dust HTLCs will go to miners fee).