@rev-net/core-v6 0.0.1

package/test/REVLoansFeeRecovery.t.sol

@@ -0,0 +1,704 @@
+// SPDX-License-Identifier: MIT
+pragma solidity 0.8.23;
+
+import "forge-std/Test.sol";
+import /* {*} from */ "@bananapus/core-v6/test/helpers/TestBaseWorkflow.sol";
+import /* {*} from "@bananapus/721-hook-v6/src/JB721TiersHookDeployer.sol";
+import /* {*} from */ "./../src/REVDeployer.sol";
+import "@croptop/core-v6/src/CTPublisher.sol";
+import {MockBuybackDataHook} from "./mock/MockBuybackDataHook.sol";
+
+import "@bananapus/core-v6/script/helpers/CoreDeploymentLib.sol";
+import "@bananapus/721-hook-v6/script/helpers/Hook721DeploymentLib.sol";
+import "@bananapus/suckers-v6/script/helpers/SuckerDeploymentLib.sol";
+import "@croptop/core-v6/script/helpers/CroptopDeploymentLib.sol";
+import "@bananapus/swap-terminal-v6/script/helpers/SwapTerminalDeploymentLib.sol";
+
+import {JBConstants} from "@bananapus/core-v6/src/libraries/JBConstants.sol";
+import {JBFees} from "@bananapus/core-v6/src/libraries/JBFees.sol";
+import {JBAccountingContext} from "@bananapus/core-v6/src/structs/JBAccountingContext.sol";
+import {MockPriceFeed} from "@bananapus/core-v6/test/mock/MockPriceFeed.sol";
+import {MockERC20} from "@bananapus/core-v6/test/mock/MockERC20.sol";
+import {REVLoans} from "../src/REVLoans.sol";
+import {REVLoan} from "../src/structs/REVLoan.sol";
+import {REVStageConfig, REVAutoIssuance} from "../src/structs/REVStageConfig.sol";
+import {REVLoanSource} from "../src/structs/REVLoanSource.sol";
+import {REVDescription} from "../src/structs/REVDescription.sol";
+import {IREVLoans} from "./../src/interfaces/IREVLoans.sol";
+import {JBSuckerDeployerConfig} from "@bananapus/suckers-v6/src/structs/JBSuckerDeployerConfig.sol";
+import {JBSuckerRegistry} from "@bananapus/suckers-v6/src/JBSuckerRegistry.sol";
+import {JB721TiersHookDeployer} from "@bananapus/721-hook-v6/src/JB721TiersHookDeployer.sol";
+import {JB721TiersHook} from "@bananapus/721-hook-v6/src/JB721TiersHook.sol";
+import {JB721TiersHookStore} from "@bananapus/721-hook-v6/src/JB721TiersHookStore.sol";
+import {JBAddressRegistry} from "@bananapus/address-registry-v6/src/JBAddressRegistry.sol";
+import {IJBAddressRegistry} from "@bananapus/address-registry-v6/src/interfaces/IJBAddressRegistry.sol";
+import {ERC165} from "@openzeppelin/contracts/utils/introspection/ERC165.sol";
+import {IERC20} from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
+
+/// @notice A terminal mock that always reverts on pay(), used to simulate fee payment failure.
+contract RevertingFeeTerminal is ERC165, IJBPayoutTerminal {
+    function pay(
+        uint256,
+        address,
+        uint256,
+        address,
+        uint256,
+        string calldata,
+        bytes calldata
+    )
+        external
+        payable
+        override
+        returns (uint256)
+    {
+        revert("Fee payment failed");
+    }
+
+    function accountingContextForTokenOf(uint256, address) external pure override returns (JBAccountingContext memory) {
+        return JBAccountingContext({
+            token: JBConstants.NATIVE_TOKEN, decimals: 18, currency: uint32(uint160(JBConstants.NATIVE_TOKEN))
+        });
+    }
+
+    function accountingContextsOf(uint256) external pure override returns (JBAccountingContext[] memory) {
+        return new JBAccountingContext[](0);
+    }
+
+    function addAccountingContextsFor(uint256, JBAccountingContext[] calldata) external override {}
+    function addToBalanceOf(
+        uint256,
+        address,
+        uint256,
+        bool,
+        string calldata,
+        bytes calldata
+    )
+        external
+        payable
+        override
+    {}
+
+    function currentSurplusOf(
+        uint256,
+        JBAccountingContext[] memory,
+        uint256,
+        uint256
+    )
+        external
+        pure
+        override
+        returns (uint256)
+    {
+        return 0;
+    }
+
+    function migrateBalanceOf(uint256, address, IJBTerminal) external pure override returns (uint256) {
+        return 0;
+    }
+
+    function sendPayoutsOf(uint256, address, uint256, uint256, uint256) external pure override returns (uint256) {
+        return 0;
+    }
+
+    function useAllowanceOf(
+        uint256,
+        address,
+        uint256,
+        uint256,
+        uint256,
+        address payable,
+        address payable,
+        string calldata
+    )
+        external
+        pure
+        override
+        returns (uint256)
+    {
+        return 0;
+    }
+
+    function supportsInterface(bytes4 interfaceId) public view override(ERC165, IERC165) returns (bool) {
+        return interfaceId == type(IJBTerminal).interfaceId || interfaceId == type(IJBPayoutTerminal).interfaceId
+            || super.supportsInterface(interfaceId);
+    }
+
+    receive() external payable {}
+}
+
+struct FeeRecoveryProjectConfig {
+    REVConfig configuration;
+    JBTerminalConfig[] terminalConfigurations;
+    REVSuckerDeploymentConfig suckerDeploymentConfiguration;
+}
+
+/// @title REVLoansFeeRecovery
+/// @notice Tests for the fee payment error recovery in REVLoans._addTo().
+/// @dev When feeTerminal.pay() reverts, the borrower should receive the fee amount back
+///      instead of losing it. For ERC-20 tokens, the dangling allowance must also be cleaned up.
+contract REVLoansFeeRecovery is TestBaseWorkflow, JBTest {
+    bytes32 REV_DEPLOYER_SALT = "REVDeployer";
+    bytes32 ERC20_SALT = "REV_TOKEN";
+
+    REVDeployer REV_DEPLOYER;
+    JB721TiersHook EXAMPLE_HOOK;
+    IJB721TiersHookDeployer HOOK_DEPLOYER;
+    IJB721TiersHookStore HOOK_STORE;
+    IJBAddressRegistry ADDRESS_REGISTRY;
+    IREVLoans LOANS_CONTRACT;
+    MockERC20 TOKEN;
+    IJBSuckerRegistry SUCKER_REGISTRY;
+    CTPublisher PUBLISHER;
+    MockBuybackDataHook MOCK_BUYBACK;
+    RevertingFeeTerminal REVERTING_TERMINAL;
+
+    uint256 FEE_PROJECT_ID;
+    uint256 REVNET_ID;
+
+    address USER = makeAddr("user");
+    address private constant TRUSTED_FORWARDER = 0xB2b5841DBeF766d4b521221732F9B618fCf34A87;
+
+    function _getFeeProjectConfig() internal view returns (FeeRecoveryProjectConfig memory) {
+        uint8 decimals = 18;
+        uint256 decimalMultiplier = 10 ** decimals;
+
+        JBAccountingContext[] memory accountingContextsToAccept = new JBAccountingContext[](2);
+        accountingContextsToAccept[0] = JBAccountingContext({
+            token: JBConstants.NATIVE_TOKEN, decimals: 18, currency: uint32(uint160(JBConstants.NATIVE_TOKEN))
+        });
+        accountingContextsToAccept[1] =
+            JBAccountingContext({token: address(TOKEN), decimals: 6, currency: uint32(uint160(address(TOKEN)))});
+
+        JBTerminalConfig[] memory terminalConfigurations = new JBTerminalConfig[](1);
+        terminalConfigurations[0] =
+            JBTerminalConfig({terminal: jbMultiTerminal(), accountingContextsToAccept: accountingContextsToAccept});
+
+        REVStageConfig[] memory stageConfigurations = new REVStageConfig[](1);
+        JBSplit[] memory splits = new JBSplit[](1);
+        splits[0].beneficiary = payable(multisig());
+        splits[0].percent = 10_000;
+
+        REVAutoIssuance[] memory issuanceConfs = new REVAutoIssuance[](1);
+        issuanceConfs[0] = REVAutoIssuance({
+            chainId: uint32(block.chainid), count: uint104(70_000 * decimalMultiplier), beneficiary: multisig()
+        });
+
+        stageConfigurations[0] = REVStageConfig({
+            startsAtOrAfter: uint40(block.timestamp),
+            autoIssuances: issuanceConfs,
+            splitPercent: 2000,
+            splits: splits,
+            initialIssuance: uint112(1000 * decimalMultiplier),
+            issuanceCutFrequency: 90 days,
+            issuanceCutPercent: JBConstants.MAX_WEIGHT_CUT_PERCENT / 2,
+            cashOutTaxRate: 6000,
+            extraMetadata: 0
+        });
+
+        REVLoanSource[] memory _loanSources = new REVLoanSource[](0);
+
+        REVConfig memory revnetConfiguration = REVConfig({
+            description: REVDescription(
+                "Revnet", "$REV", "ipfs://QmNRHT91HcDgMcenebYX7rJigt77cgNcosvuhX21wkF3tx", ERC20_SALT
+            ),
+            baseCurrency: uint32(uint160(JBConstants.NATIVE_TOKEN)),
+            splitOperator: multisig(),
+            stageConfigurations: stageConfigurations
+        });
+
+        return FeeRecoveryProjectConfig({
+            configuration: revnetConfiguration,
+            terminalConfigurations: terminalConfigurations,
+            suckerDeploymentConfiguration: REVSuckerDeploymentConfig({
+                deployerConfigurations: new JBSuckerDeployerConfig[](0), salt: keccak256(abi.encodePacked("REV"))
+            })
+        });
+    }
+
+    function _getRevnetConfig() internal view returns (FeeRecoveryProjectConfig memory) {
+        uint8 decimals = 18;
+        uint256 decimalMultiplier = 10 ** decimals;
+
+        JBAccountingContext[] memory accountingContextsToAccept = new JBAccountingContext[](2);
+        accountingContextsToAccept[0] = JBAccountingContext({
+            token: JBConstants.NATIVE_TOKEN, decimals: 18, currency: uint32(uint160(JBConstants.NATIVE_TOKEN))
+        });
+        accountingContextsToAccept[1] =
+            JBAccountingContext({token: address(TOKEN), decimals: 6, currency: uint32(uint160(address(TOKEN)))});
+
+        JBTerminalConfig[] memory terminalConfigurations = new JBTerminalConfig[](1);
+        terminalConfigurations[0] =
+            JBTerminalConfig({terminal: jbMultiTerminal(), accountingContextsToAccept: accountingContextsToAccept});
+
+        JBSplit[] memory splits = new JBSplit[](1);
+        splits[0].beneficiary = payable(multisig());
+        splits[0].percent = 10_000;
+
+        REVStageConfig[] memory stageConfigurations = new REVStageConfig[](1);
+        REVAutoIssuance[] memory issuanceConfs = new REVAutoIssuance[](1);
+        issuanceConfs[0] = REVAutoIssuance({
+            chainId: uint32(block.chainid), count: uint104(70_000 * decimalMultiplier), beneficiary: multisig()
+        });
+
+        stageConfigurations[0] = REVStageConfig({
+            startsAtOrAfter: uint40(block.timestamp),
+            autoIssuances: issuanceConfs,
+            splitPercent: 2000,
+            splits: splits,
+            initialIssuance: uint112(1000 * decimalMultiplier),
+            issuanceCutFrequency: 90 days,
+            issuanceCutPercent: JBConstants.MAX_WEIGHT_CUT_PERCENT / 2,
+            cashOutTaxRate: 6000,
+            extraMetadata: 0
+        });
+
+        REVLoanSource[] memory _loanSources = new REVLoanSource[](2);
+        _loanSources[0] = REVLoanSource({token: JBConstants.NATIVE_TOKEN, terminal: jbMultiTerminal()});
+        _loanSources[1] = REVLoanSource({token: address(TOKEN), terminal: jbMultiTerminal()});
+
+        REVConfig memory revnetConfiguration = REVConfig({
+            description: REVDescription(
+                "NANA", "$NANA", "ipfs://QmNRHT91HcDgMcenebYX7rJigt77cgNxosvuhX21wkF3tx", "NANA_TOKEN"
+            ),
+            baseCurrency: uint32(uint160(JBConstants.NATIVE_TOKEN)),
+            splitOperator: multisig(),
+            stageConfigurations: stageConfigurations
+        });
+
+        return FeeRecoveryProjectConfig({
+            configuration: revnetConfiguration,
+            terminalConfigurations: terminalConfigurations,
+            suckerDeploymentConfiguration: REVSuckerDeploymentConfig({
+                deployerConfigurations: new JBSuckerDeployerConfig[](0), salt: keccak256(abi.encodePacked("NANA"))
+            })
+        });
+    }
+
+    function setUp() public override {
+        super.setUp();
+
+        FEE_PROJECT_ID = jbProjects().createFor(multisig());
+
+        SUCKER_REGISTRY = new JBSuckerRegistry(jbDirectory(), jbPermissions(), multisig(), address(0));
+        HOOK_STORE = new JB721TiersHookStore();
+        EXAMPLE_HOOK = new JB721TiersHook(jbDirectory(), jbPermissions(), jbRulesets(), HOOK_STORE, multisig());
+        ADDRESS_REGISTRY = new JBAddressRegistry();
+        HOOK_DEPLOYER = new JB721TiersHookDeployer(EXAMPLE_HOOK, HOOK_STORE, ADDRESS_REGISTRY, multisig());
+        PUBLISHER = new CTPublisher(jbDirectory(), jbPermissions(), FEE_PROJECT_ID, multisig());
+        MOCK_BUYBACK = new MockBuybackDataHook();
+        TOKEN = new MockERC20("1/2 ETH", "1/2");
+        REVERTING_TERMINAL = new RevertingFeeTerminal();
+
+        MockPriceFeed priceFeed = new MockPriceFeed(1e21, 6);
+        vm.prank(multisig());
+        jbPrices()
+            .addPriceFeedFor(0, uint32(uint160(address(TOKEN))), uint32(uint160(JBConstants.NATIVE_TOKEN)), priceFeed);
+
+        LOANS_CONTRACT = new REVLoans({
+            controller: jbController(),
+            projects: jbProjects(),
+            revId: FEE_PROJECT_ID,
+            owner: address(this),
+            permit2: permit2(),
+            trustedForwarder: TRUSTED_FORWARDER
+        });
+
+        REV_DEPLOYER = new REVDeployer{salt: REV_DEPLOYER_SALT}(
+            jbController(),
+            SUCKER_REGISTRY,
+            FEE_PROJECT_ID,
+            HOOK_DEPLOYER,
+            PUBLISHER,
+            IJBRulesetDataHook(address(MOCK_BUYBACK)),
+            address(LOANS_CONTRACT),
+            TRUSTED_FORWARDER
+        );
+
+        // Deploy fee project.
+        vm.prank(multisig());
+        jbProjects().approve(address(REV_DEPLOYER), FEE_PROJECT_ID);
+
+        FeeRecoveryProjectConfig memory feeProjectConfig = _getFeeProjectConfig();
+        vm.prank(multisig());
+        REV_DEPLOYER.deployFor({
+            revnetId: FEE_PROJECT_ID,
+            configuration: feeProjectConfig.configuration,
+            terminalConfigurations: feeProjectConfig.terminalConfigurations,
+            suckerDeploymentConfiguration: feeProjectConfig.suckerDeploymentConfiguration
+        });
+
+        // Deploy revnet with loans enabled.
+        FeeRecoveryProjectConfig memory revnetConfig = _getRevnetConfig();
+        REVNET_ID = REV_DEPLOYER.deployFor({
+            revnetId: 0,
+            configuration: revnetConfig.configuration,
+            terminalConfigurations: revnetConfig.terminalConfigurations,
+            suckerDeploymentConfiguration: revnetConfig.suckerDeploymentConfiguration
+        });
+
+        vm.deal(USER, 1000e18);
+    }
+
+    // =========================================================================
+    // Helpers
+    // =========================================================================
+
+    /// @notice Mock loan permissions for a user.
+    function _mockLoanPermission(address user) internal {
+        mockExpect(
+            address(jbPermissions()),
+            abi.encodeCall(IJBPermissions.hasPermission, (address(LOANS_CONTRACT), user, REVNET_ID, 11, true, true)),
+            abi.encode(true)
+        );
+    }
+
+    /// @notice Make the directory return the reverting terminal as the fee terminal for the REV project.
+    function _mockRevertingFeeTerminal(address token) internal {
+        vm.mockCall(
+            address(jbDirectory()),
+            abi.encodeWithSelector(IJBDirectory.primaryTerminalOf.selector, FEE_PROJECT_ID, token),
+            abi.encode(address(REVERTING_TERMINAL))
+        );
+    }
+
+    /// @notice Borrow against native ETH and return the borrower's balance change.
+    function _borrowNative(
+        address user,
+        uint256 ethAmount,
+        uint256 prepaidFee
+    )
+        internal
+        returns (uint256 loanId, uint256 borrowerBalanceBefore, uint256 borrowerBalanceAfter)
+    {
+        // Pay into revnet to get tokens.
+        vm.prank(user);
+        uint256 tokenCount =
+            jbMultiTerminal().pay{value: ethAmount}(REVNET_ID, JBConstants.NATIVE_TOKEN, ethAmount, user, 0, "", "");
+
+        _mockLoanPermission(user);
+
+        REVLoanSource memory source = REVLoanSource({token: JBConstants.NATIVE_TOKEN, terminal: jbMultiTerminal()});
+
+        borrowerBalanceBefore = user.balance;
+
+        vm.prank(user);
+        (loanId,) = LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokenCount, payable(user), prepaidFee);
+
+        borrowerBalanceAfter = user.balance;
+    }
+
+    // =========================================================================
+    // Test: Normal fee payment succeeds (regression — confirm existing behavior)
+    // =========================================================================
+
+    /// @notice When the fee terminal is healthy, the REV fee is deducted from the borrower's payout.
+    function test_feePaymentSuccess_nativeToken() public {
+        (, uint256 balanceBefore, uint256 balanceAfter) = _borrowNative(USER, 10e18, 25);
+
+        uint256 received = balanceAfter - balanceBefore;
+
+        // The borrower should have received something (net of both source fee + REV fee).
+        assertGt(received, 0, "Borrower should receive ETH");
+
+        // No ETH should be stuck in the loans contract.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck in loans contract");
+    }
+
+    // =========================================================================
+    // Test: Fee terminal reverts with native ETH — borrower gets fee back
+    // =========================================================================
+
+    /// @notice When feeTerminal.pay() reverts, the borrower receives the REV fee amount back.
+    function test_feePaymentFailure_nativeToken_borrowerGetsMoreETH() public {
+        // Pay into revnet first so both borrow attempts start from identical state.
+        vm.prank(USER);
+        uint256 tokenCount =
+            jbMultiTerminal().pay{value: 10e18}(REVNET_ID, JBConstants.NATIVE_TOKEN, 10e18, USER, 0, "", "");
+
+        _mockLoanPermission(USER);
+        REVLoanSource memory source = REVLoanSource({token: JBConstants.NATIVE_TOKEN, terminal: jbMultiTerminal()});
+
+        // Snapshot state before borrow.
+        uint256 snap = vm.snapshotState();
+
+        // Normal borrow.
+        uint256 balBefore = USER.balance;
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokenCount, payable(USER), 25);
+        uint256 normalReceived = USER.balance - balBefore;
+
+        // Revert to snapshot — identical state.
+        vm.revertToState(snap);
+
+        // Mock the fee terminal to revert.
+        _mockRevertingFeeTerminal(JBConstants.NATIVE_TOKEN);
+        _mockLoanPermission(USER);
+
+        balBefore = USER.balance;
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokenCount, payable(USER), 25);
+        uint256 failReceived = USER.balance - balBefore;
+
+        // The borrower with a failed fee terminal should receive MORE than the normal borrower,
+        // because the REV fee (1% of borrow amount) is returned to them.
+        assertGt(failReceived, normalReceived, "Failed-fee borrower should receive more ETH than normal borrower");
+
+        // No ETH should be stuck in the loans contract.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck in loans contract after fee failure");
+    }
+
+    // =========================================================================
+    // Test: Fee terminal reverts with native ETH — amount difference matches REV fee
+    // =========================================================================
+
+    /// @notice The extra ETH the borrower receives when the fee terminal reverts matches
+    ///         the expected REV fee amount (1% of borrow amount).
+    function test_feePaymentFailure_nativeToken_exactFeeRecovery() public {
+        REVLoanSource memory source = REVLoanSource({token: JBConstants.NATIVE_TOKEN, terminal: jbMultiTerminal()});
+
+        // Pay into revnet.
+        vm.prank(USER);
+        uint256 tokens =
+            jbMultiTerminal().pay{value: 10e18}(REVNET_ID, JBConstants.NATIVE_TOKEN, 10e18, USER, 0, "", "");
+
+        _mockLoanPermission(USER);
+
+        // Snapshot.
+        uint256 snap = vm.snapshotState();
+
+        // Normal borrow.
+        uint256 balBefore = USER.balance;
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokens, payable(USER), 25);
+        uint256 normalReceived = USER.balance - balBefore;
+
+        // Get the actual borrow amount from the loan to compute expected REV fee.
+        // Loan ID = revnetId * 1e12 + loanNumber (first loan = 1).
+        REVLoan memory loan = LOANS_CONTRACT.loanOf(REVNET_ID * 1_000_000_000_000 + 1);
+        uint256 expectedRevFee =
+            JBFees.feeAmountFrom({amountBeforeFee: loan.amount, feePercent: LOANS_CONTRACT.REV_PREPAID_FEE_PERCENT()});
+
+        // Revert to snapshot.
+        vm.revertToState(snap);
+
+        // Mock fee terminal to revert.
+        _mockRevertingFeeTerminal(JBConstants.NATIVE_TOKEN);
+        _mockLoanPermission(USER);
+
+        balBefore = USER.balance;
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokens, payable(USER), 25);
+        uint256 failReceived = USER.balance - balBefore;
+
+        // The difference should be the REV fee amount.
+        uint256 difference = failReceived - normalReceived;
+        assertEq(difference, expectedRevFee, "Difference should equal the REV fee amount");
+
+        // Verify no funds stuck.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck");
+    }
+
+    // =========================================================================
+    // Test: Fee terminal reverts with ERC-20 — allowance is cleaned up
+    // =========================================================================
+
+    /// @notice When feeTerminal.pay() reverts for an ERC-20 loan, the dangling allowance
+    ///         to the fee terminal is removed via safeDecreaseAllowance.
+    function test_feePaymentFailure_erc20_allowanceCleaned() public {
+        // Mock the fee terminal to revert for the TOKEN.
+        _mockRevertingFeeTerminal(address(TOKEN));
+
+        // Fund user with ERC-20 tokens.
+        uint256 payAmount = 1_000_000; // 6 decimals
+        deal(address(TOKEN), USER, payAmount);
+
+        // Pay into revnet with ERC-20.
+        vm.startPrank(USER);
+        TOKEN.approve(address(jbMultiTerminal()), payAmount);
+        uint256 tokenCount = jbMultiTerminal().pay(REVNET_ID, address(TOKEN), payAmount, USER, 0, "", "");
+        vm.stopPrank();
+
+        _mockLoanPermission(USER);
+        REVLoanSource memory source = REVLoanSource({token: address(TOKEN), terminal: jbMultiTerminal()});
+
+        // Check allowance to reverting terminal BEFORE borrow.
+        uint256 allowanceBefore = TOKEN.allowance(address(LOANS_CONTRACT), address(REVERTING_TERMINAL));
+        assertEq(allowanceBefore, 0, "No pre-existing allowance");
+
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokenCount, payable(USER), 25);
+
+        // After the borrow, the allowance to the reverting terminal should still be 0
+        // (the catch block decreased it).
+        uint256 allowanceAfter = TOKEN.allowance(address(LOANS_CONTRACT), address(REVERTING_TERMINAL));
+        assertEq(allowanceAfter, 0, "Allowance should be cleaned up after fee failure");
+
+        // No tokens stuck in the loans contract.
+        assertEq(TOKEN.balanceOf(address(LOANS_CONTRACT)), 0, "No ERC-20 stuck in loans contract");
+    }
+
+    // =========================================================================
+    // Test: Fee terminal reverts with ERC-20 — borrower gets fee back
+    // =========================================================================
+
+    /// @notice When feeTerminal.pay() reverts for an ERC-20 loan, the borrower receives
+    ///         the fee amount that would have gone to the REV project.
+    function test_feePaymentFailure_erc20_borrowerGetsMoreTokens() public {
+        uint256 payAmount = 1_000_000; // 6 decimals
+        REVLoanSource memory source = REVLoanSource({token: address(TOKEN), terminal: jbMultiTerminal()});
+
+        // Pay into revnet with ERC-20.
+        deal(address(TOKEN), USER, payAmount);
+        vm.startPrank(USER);
+        TOKEN.approve(address(jbMultiTerminal()), payAmount);
+        uint256 tokens = jbMultiTerminal().pay(REVNET_ID, address(TOKEN), payAmount, USER, 0, "", "");
+        vm.stopPrank();
+
+        _mockLoanPermission(USER);
+
+        // Snapshot.
+        uint256 snap = vm.snapshotState();
+
+        // Normal borrow.
+        uint256 tokenBalBefore = TOKEN.balanceOf(USER);
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokens, payable(USER), 25);
+        uint256 normalReceived = TOKEN.balanceOf(USER) - tokenBalBefore;
+
+        // Revert to snapshot.
+        vm.revertToState(snap);
+
+        // Mock fee terminal to revert.
+        _mockRevertingFeeTerminal(address(TOKEN));
+        _mockLoanPermission(USER);
+
+        tokenBalBefore = TOKEN.balanceOf(USER);
+        vm.prank(USER);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokens, payable(USER), 25);
+        uint256 failReceived = TOKEN.balanceOf(USER) - tokenBalBefore;
+
+        // Failed-fee borrower should receive more tokens.
+        assertGt(failReceived, normalReceived, "Failed-fee ERC-20 borrower should receive more tokens");
+    }
+
+    // =========================================================================
+    // Test: No fee terminal (address(0)) — revFeeAmount is zero, no try/catch
+    // =========================================================================
+
+    /// @notice When no fee terminal exists for the token, revFeeAmount is 0 and no fee is attempted.
+    function test_noFeeTerminal_borrowStillWorks() public {
+        // Mock the directory to return address(0) for the fee terminal.
+        vm.mockCall(
+            address(jbDirectory()),
+            abi.encodeWithSelector(IJBDirectory.primaryTerminalOf.selector, FEE_PROJECT_ID, JBConstants.NATIVE_TOKEN),
+            abi.encode(address(0))
+        );
+
+        // Borrow should still work — no fee is taken.
+        (, uint256 balanceBefore, uint256 balanceAfter) = _borrowNative(USER, 10e18, 25);
+        uint256 received = balanceAfter - balanceBefore;
+        assertGt(received, 0, "Borrower should receive ETH even without fee terminal");
+
+        // No ETH stuck.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck");
+    }
+
+    // =========================================================================
+    // Test: Multiple borrows with fee failure — no cumulative stuck funds
+    // =========================================================================
+
+    /// @notice After multiple borrows where the fee terminal reverts, no funds accumulate
+    ///         in the loans contract.
+    function test_feePaymentFailure_multipleBorrows_noStuckFunds() public {
+        _mockRevertingFeeTerminal(JBConstants.NATIVE_TOKEN);
+
+        for (uint256 i; i < 3; i++) {
+            address borrower = makeAddr(string(abi.encodePacked("borrower", i)));
+            vm.deal(borrower, 100e18);
+
+            vm.prank(borrower);
+            uint256 tokens =
+                jbMultiTerminal().pay{value: 5e18}(REVNET_ID, JBConstants.NATIVE_TOKEN, 5e18, borrower, 0, "", "");
+
+            mockExpect(
+                address(jbPermissions()),
+                abi.encodeCall(
+                    IJBPermissions.hasPermission, (address(LOANS_CONTRACT), borrower, REVNET_ID, 11, true, true)
+                ),
+                abi.encode(true)
+            );
+
+            REVLoanSource memory source = REVLoanSource({token: JBConstants.NATIVE_TOKEN, terminal: jbMultiTerminal()});
+
+            vm.prank(borrower);
+            LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokens, payable(borrower), 25);
+        }
+
+        // After 3 borrows with fee failures, no ETH should be stuck.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck after multiple fee-failed borrows");
+    }
+
+    // =========================================================================
+    // Fuzz: Fee recovery always returns correct amount to borrower
+    // =========================================================================
+
+    /// @notice Fuzz test: regardless of the borrow amount, when the fee terminal reverts,
+    ///         the borrower always receives the full netAmountPaidOut minus only the source fee.
+    function test_fuzz_feeRecovery_nativeToken(uint256 payAmount) public {
+        // Bound to reasonable range. Need enough to get a nonzero borrow.
+        payAmount = bound(payAmount, 1e16, 100e18);
+
+        _mockRevertingFeeTerminal(JBConstants.NATIVE_TOKEN);
+
+        address borrower = makeAddr("fuzzBorrower");
+        vm.deal(borrower, payAmount + 1e18);
+
+        vm.prank(borrower);
+        uint256 tokens = jbMultiTerminal().pay{value: payAmount}(
+            REVNET_ID, JBConstants.NATIVE_TOKEN, payAmount, borrower, 0, "", ""
+        );
+
+        uint256 borrowable =
+            LOANS_CONTRACT.borrowableAmountFrom(REVNET_ID, tokens, 18, uint32(uint160(JBConstants.NATIVE_TOKEN)));
+
+        // Skip if not enough surplus to borrow.
+        if (borrowable == 0) return;
+
+        _mockLoanPermission(borrower);
+        REVLoanSource memory source = REVLoanSource({token: JBConstants.NATIVE_TOKEN, terminal: jbMultiTerminal()});
+
+        uint256 balanceBefore = borrower.balance;
+        vm.prank(borrower);
+        LOANS_CONTRACT.borrowFrom(REVNET_ID, source, 0, tokens, payable(borrower), 25);
+        uint256 received = borrower.balance - balanceBefore;
+
+        // The borrower should always receive something.
+        assertGt(received, 0, "Borrower should receive ETH in fuzz");
+
+        // No funds stuck.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck in fuzz");
+    }
+
+    // =========================================================================
+    // Test: Fee recovery on native token — ETH returned from failed call
+    // =========================================================================
+
+    /// @notice Verifies that when a native-token fee terminal call reverts, the ETH sent
+    ///         with the call is returned to REVLoans and forwarded to the borrower.
+    ///         The reverting terminal should NOT hold any ETH.
+    function test_feePaymentFailure_nativeToken_revertingTerminalHoldsNoETH() public {
+        _mockRevertingFeeTerminal(JBConstants.NATIVE_TOKEN);
+
+        uint256 revertingTerminalBalanceBefore = address(REVERTING_TERMINAL).balance;
+
+        _borrowNative(USER, 10e18, 25);
+
+        // The reverting terminal should not have received any ETH.
+        assertEq(
+            address(REVERTING_TERMINAL).balance, revertingTerminalBalanceBefore, "Reverting terminal should hold no ETH"
+        );
+
+        // No ETH stuck in loans contract.
+        assertEq(address(LOANS_CONTRACT).balance, 0, "No ETH stuck in loans contract");
+    }
+}