bal-server/docs/08_security_audit.md

Security Audit

Quick Reference

• What this file contains: threat model, vulnerability assessment, hardening recommendations, and a security checklist.
• See also: AGENTS.md, 07_deployment_and_ops.md, 06_database_schema.md, 03_architecture_and_data_flow.md, 04_modules_detail.md

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Threat Model

Assets

1. bal.db (SQLite database): Contains all transaction details, user IP addresses, and stats data. Single unencrypted file on disk. WAL mode enabled for concurrent access safety.
2. Private Keys (privkey.pem): Used to sign statistics payloads for the welist server. Located in .gitignore.
3. Bitcoin Node (bitcoind) Access: The bal-pusher has RPC access. Compromise allows arbitrary transaction broadcasting.
4. Server Availability (bal-server): Public-facing HTTP endpoint. DoS attacks threaten service availability.

Attackers

• Remote Anonymous Users: Can interact with the API via public HTTP. No credentials required.
• Network Man-in-the-Middle (MITM): TLS termination is via Nginx reverse proxy. The bal-server itself is plain HTTP.
• Local/Insider Threats: If the server is compromised, the attacker can access bal.db, private keys, and env files.

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Vulnerability Assessment

1. SQL Injection (FIXED)

Severity: HIGH | Status: Fixed Location: src/db.rs, src/bin/bal-server.rs, src/bin/bal-pusher.rs Description: SQL queries previously used format!() for string interpolation. All queries now use parameterized statements (? with bind()). Mitigation Applied: All SQL queries rewritten with prepared statements. execute_insert uses parameterized batch inserts. check_duplicate_txids uses parameterized IN clauses. echo_stats handler uses prepared statements for chain filtering. Regression Tests: tests/sql_injection_tests.rs (3 tests).

2. Panic on Untrusted Input (FIXED)

Severity: HIGH | Status: Fixed Location: src/bin/bal-server.rs, src/bin/bal-pusher.rs Description: All unwrap()/expect() calls on critical paths have been replaced with safe error handling. Mitigation Applied:

• bal-server: from_utf8 returns 400, sqlite::open uses open_db() with validation, all handlers return proper HTTP status codes.
• bal-pusher: RPC failures log errors + sleep + retry (no panic), ZMQ recv uses set_rcvtimeo(5000), fs::read_to_string uses match + 500, cfg.lock() uses poisoned.into_inner() recovery. Regression Tests: tests/panic_regression_tests.rs (2 tests).

3. Secret Leakage (FIXED)

Severity: HIGH | Status: Fixed Location: make_release.sh, .gitignore Description: make_release.sh now loads TOKEN from .env (.env.example provided). Private keys (.pem, .key) are in .gitignore. generate_keys.sh sets chmod 600 on generated keys. Mitigation Applied: Secrets removed from scripts and repository. .gitignore protects .env, *.pem, *.key files. Regression Tests: tests/secret_leakage_tests.rs (3 tests).

4. Denial of Service (DoS) (FIXED)

Severity: HIGH | Status: Fixed Location: src/bin/bal-server.rs (HTTP), src/bin/bal-pusher.rs (ZMQ) Description: All DoS vectors mitigated via actix-web migration. Mitigation Applied:

• Body size limit: PayloadConfig::default().limit(max_body_size) via BAL_SERVER_ACTIX_MAX_BODY_SIZE (default 1 MiB).
• Rate limiting: actix-governor with token-bucket per endpoint (BAL_SERVER_ACTIX_PUSHTXS_PER_SEC/BURST).
• Connection limits: workers(4) and max_connections(100) via BAL_SERVER_ACTIX_WORKERS/MAX_CONNECTIONS.
• Body timeout: configurable via BAL_SERVER_ACTIX_TIMEOUT_SECS.
• ZMQ timeout: set_rcvtimeo(5000) prevents infinite blocking.
• RPC retry: sleep + retry on connection failure instead of panic.

5. SSRF / Network Abuse via reqwest (FIXED)

Severity: MEDIUM | Status: Fixed Location: src/bin/bal-pusher.rs, src/validation.rs Description: URL validation prevents redirecting requests to internal/private IPs. Mitigation Applied: is_valid_welist_url() in src/validation.rs blocks localhost, loopback, RFC1918, link-local, multicast, unspecified, and IPv6 unique-local addresses. HTTPS-only scheme enforced. Regression Tests: tests/ssrf_tests.rs (integration) + 8 unit tests in src/validation.rs.

6. Insecure Database Access (FIXED)

Severity: MEDIUM | Status: Fixed Location: src/db.rs, src/bin/bal-server.rs, src/bin/bal-pusher.rs Description: Database path validation and WAL mode for concurrent access. Mitigation Applied:

• open_db() rejects .. traversal, forbidden system directories (/etc, /proc, /sys, /dev, /usr, /bin, /sbin, /lib, /opt), symlinks, and non-regular files.
• WAL mode (PRAGMA journal_mode=WAL) with retry logic (up to 5 attempts).
• busy_timeout=5000 for concurrent access.
• bal-server uses Arc<Mutex<Connection>> for thread-safe shared access. Regression Tests: tests/db_path_validation.rs (5 tests).

7. ZMQ Authentication and Encryption (OPEN)

Severity: MEDIUM | Status: Open Location: src/bin/bal-pusher.rs Description: ZMQ connection is plaintext TCP. No authentication (ZAP), no encryption (ZMQ_CURVE). If the ZMQ port is exposed, any attacker can subscribe to topics. Mitigation (Operational):

• Bind ZMQ to 127.0.0.1 only.
• Firewall blocks external access to ZMQ ports.
• If public ZMQ is required, use ZMQ_CURVE with public-key cryptography.

8. Missing HTTPS / Insecure Server Communication (FIXED)

Severity: HIGH | Status: Fixed (Infrastructure) Location: Nginx configuration, contrib/nginx/bal-server.conf Description: TLS termination via Nginx reverse proxy. The bal-server intentionally does not implement TLS. Mitigation Applied:

• Dedicated Nginx template with listen 443 ssl http2, Let's Encrypt paths.
• Security headers: X-Frame-Options, X-Content-Type-Options, Referrer-Policy.
• client_max_body_size matching BAL_SERVER_ACTIX_MAX_BODY_SIZE.
• HTTP 80 redirect to HTTPS.
• Deployment checklist ensures no accidental plain HTTP exposure.

9. Missing Input Validation (FIXED)

Severity: MEDIUM | Status: Fixed Location: src/bin/bal-server.rs Description: Network, txid, and content validation. Mitigation Applied:

• Network validation: NETWORKS.contains(&param.as_str()) before processing. Unknown networks return 404.
• Txid validation: echo_search requires exactly 64 ASCII hex characters. Non-hex or wrong length returns 400.
• XPub address caching: get_all_addresses_by_xpub loads all addresses once per batch (O(1) lookup), eliminating N+1 queries.
• Content-Length: Handled by actix-web PayloadConfig size limit. Regression Tests: tests/input_validation_tests.rs (4 tests).

10. Information Leakage (MITIGATED)

Severity: LOW | Status: Mitigated Location: Application logs Description: Raw file logging (valid_txs/invalid_txs) has been removed. info!/warn! macros may still log txid and details in application logs. Mitigation (Operational): Set production RUST_LOG to warn or higher. Log files restricted with chmod 600.

11. bal-stats.rs.dontcompile (REMOVED)

Severity: LOW | Status: Removed Description: The broken HTML report generator file no longer exists in the source tree.

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Hardening Recommendations

System-Level

1. Run as non-root user with systemd hardening (ProtectSystem=full, NoNewPrivileges, PrivateDevices, MemoryDenyWriteExecute).
2. Use firewall to block all inbound ports except HTTPS (443) and SSH (22).
3. Use VPN or Tor for welist connections if on public network.
4. Run in a container or chroot for isolation.
5. Enable SELinux or AppArmor profiles for the binaries.
6. Use read-only filesystem for the server binary.

Application-Level

1. Rate Limiting: Implemented via actix-governor with per-endpoint token-bucket configuration.
2. Input Validation: Network enum check, txid hex validation, body size limits.
3. HTTPS: Via Nginx reverse proxy with Let's Encrypt.
4. WAL Mode: Enabled with retry logic for concurrent access.
5. ZMQ Timeout: 5-second receive timeout prevents infinite blocking.
6. Transaction Size Limits: Configurable via rate limiting and body size.
7. ZMQ Retry: Reconnect logic with timeout-based detection.
8. Fee Limits: Per-network fixed_fee configuration.
9. Network Limits: Only known networks accepted (bitcoin, testnet, testnet4, signet, regtest).
10. Locktime Reasonableness: Locktime compared against blockchain height and median time with threshold-based distinction.

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Regression Test Suite

Test File	Tests	Coverage
tests/sql_injection_tests.rs	3	Parameterized queries, injection prevention
tests/panic_regression_tests.rs	2	Mutex poisoning recovery, NULL value handling
tests/ssrf_tests.rs	4+	URL validation, internal IP blocking
tests/secret_leakage_tests.rs	3	.gitignore, no tracked secrets, no hardcoded tokens
tests/input_validation_tests.rs	4	Address caching, network validation, txid hex validation
tests/db_path_validation.rs	5	Path traversal, forbidden dirs, symlinks, WAL pragma, valid paths
src/validation.rs (inline)	8	SSRF URL validation unit tests