# `_sendOrEscrowFunds` will brick LCG funds causing insolvency

TellerV2 _sendOrEscrowFunds escrows funds on failed transferFrom, but LCG lacks a withdraw, inflating share price while assets are stuck, causing insolvency.

- Payout: Contest reward
- Severity: high
- Program: Teller
- Credited: 0x3b
- Disclosed: 2024-04-18
- Write-up quality: 6/10
- Original: https://github.com/sherlock-audit/2024-04-teller-finance-judging/issues/126
- Library page: https://bugbountylibrary.com/r/sherlock%3A2024-04-teller-finance%3AH-10
- Tags: domain:web3 impact:dos impact:funds-loss kind:contest platform:sherlock sev:high tech:solidity technique:source-review vuln:business-logic vuln:share-inflation

**Target:** TellerV2 _sendOrEscrowFunds / LenderCommitmentGroup repayment callback
**Root cause:** _sendOrEscrowFunds catches a reverting transferFrom and deposits into EscrowVault, but LCG has no withdraw path, so funds are stranded while the repayLoanCallback still increases the pool's share price.
**Steps:**
1. Trigger a repayment/liquidation where transferFrom reverts (e.g. token behavior or allowance failure).
2. Observe _sendOrEscrowFunds catch branch calling IEscrowVault.deposit(lender, token, amount).
3. repayLoanCallback still executes, increasing LCG share price without adding assets.
4. LCG has no withdraw from EscrowVault, so funds are permanently stuck; last LPs cannot withdraw.
**How found:** Code review of the try/catch in _sendOrEscrowFunds, noticing the catch deposits to EscrowVault and that LCG lacks a withdraw implementation while the repay callback still inflates share price.
**Exploitation:** Any repayment path where transferFrom reverts routes funds to EscrowVault; LCG's share price rises without corresponding assets, leaving the pool insolvent and the escrowed tokens unrecoverable.
**Insight:** When a contract uses try/catch to swallow transfer failures by escrowing funds, check whether every downstream consumer (e.g. LCG) can actually retrieve escrowed assets; a missing withdraw turns a safety fallback into permanent loss plus share-price inflation.