From ab538c00c68e17e20a75fac28edcdb82d1c8cb89 Mon Sep 17 00:00:00 2001
From: Michal Nazarewicz <mina86@mina86.com>
Date: Fri, 24 May 2024 20:30:10 +0200
Subject: [PATCH] solana-ibc: refund user fees when transfer acknowledgement
 fails (#331)

Co-authored-by: dhruvja <dhruv@iamsizzling.com>
---
 .../solana-ibc/programs/solana-ibc/src/ibc.rs   |  4 +++-
 .../solana-ibc/programs/solana-ibc/src/lib.rs   |  3 +--
 .../programs/solana-ibc/src/transfer/mod.rs     | 17 ++++++++++++++++-
 3 files changed, 20 insertions(+), 4 deletions(-)

diff --git a/solana/solana-ibc/programs/solana-ibc/src/ibc.rs b/solana/solana-ibc/programs/solana-ibc/src/ibc.rs
index 56f41940..dbfec48e 100644
--- a/solana/solana-ibc/programs/solana-ibc/src/ibc.rs
+++ b/solana/solana-ibc/programs/solana-ibc/src/ibc.rs
@@ -4,7 +4,9 @@ pub use ibc::apps;
 pub use ibc::apps::transfer::types::error::TokenTransferError;
 pub use ibc::apps::transfer::types::msgs::transfer::MsgTransfer;
 pub use ibc::core::channel::context::SendPacketValidationContext;
-pub use ibc::core::channel::types::acknowledgement::Acknowledgement;
+pub use ibc::core::channel::types::acknowledgement::{
+    Acknowledgement, AcknowledgementStatus,
+};
 pub use ibc::core::channel::types::channel::ChannelEnd;
 pub use ibc::core::channel::types::commitment::{
     AcknowledgementCommitment, PacketCommitment,
diff --git a/solana/solana-ibc/programs/solana-ibc/src/lib.rs b/solana/solana-ibc/programs/solana-ibc/src/lib.rs
index 4c73319a..e00f63b1 100644
--- a/solana/solana-ibc/programs/solana-ibc/src/lib.rs
+++ b/solana/solana-ibc/programs/solana-ibc/src/lib.rs
@@ -5,7 +5,6 @@
 
 extern crate alloc;
 
-use ::ibc::core::client::types::error::ClientError;
 use anchor_lang::prelude::*;
 use anchor_lang::solana_program;
 use anchor_spl::associated_token::AssociatedToken;
@@ -461,7 +460,7 @@ pub mod solana_ibc {
             .map_err(|e| error::Error::ContextError(e.into()))?;
         if !status.is_active() {
             return Err(error::Error::ContextError(
-                ClientError::ClientNotActive { status }.into(),
+                ibc::ClientError::ClientNotActive { status }.into(),
             )
             .into());
         }
diff --git a/solana/solana-ibc/programs/solana-ibc/src/transfer/mod.rs b/solana/solana-ibc/programs/solana-ibc/src/transfer/mod.rs
index b3cbfdc0..15af9dc3 100644
--- a/solana/solana-ibc/programs/solana-ibc/src/transfer/mod.rs
+++ b/solana/solana-ibc/programs/solana-ibc/src/transfer/mod.rs
@@ -238,8 +238,22 @@ impl ibc::Module for IbcStorage<'_, '_> {
                 relayer,
             );
 
+        let status = serde_json::from_slice::<ibc::AcknowledgementStatus>(
+            acknowledgement.as_bytes(),
+        );
+        let success = if let Ok(status) = status {
+            status.is_successful()
+        } else {
+            let description =
+                ibc::TokenTransferError::AckDeserialization.to_string();
+            return (
+                ibc::ModuleExtras::empty(),
+                Err(ibc::PacketError::AppModule { description }),
+            );
+        };
+
         // refund fee if there was an error on the counterparty chain
-        if result.1.is_err() {
+        if !success {
             let store = self.borrow();
             let accounts = &store.accounts;
             let receiver = accounts.receiver.clone().unwrap();
@@ -249,6 +263,7 @@ impl ibc::Module for IbcStorage<'_, '_> {
             **receiver.try_borrow_mut_lamports().unwrap() +=
                 crate::REFUND_FEE_AMOUNT_IN_LAMPORTS;
         }
+
         (
             result.0,
             result.1.map_err(|e| ibc::PacketError::AppModule {