From ca2f855afbbc7f81ffa8e7854009a207c74fbff8 Mon Sep 17 00:00:00 2001
From: tequ <git@tequ.dev>
Date: Fri, 12 Jun 2026 21:11:23 +0900
Subject: [PATCH] Fix ammLPHolds logic to include escrowed cases

---
 src/test/app/Escrow_test.cpp           | 82 ++++++++++++++++++++++++++
 src/xrpld/app/misc/detail/AMMUtils.cpp | 23 ++++++++
 2 files changed, 105 insertions(+)

diff --git a/src/test/app/Escrow_test.cpp b/src/test/app/Escrow_test.cpp
index 778e0bed7..db5a6c205 100644
--- a/src/test/app/Escrow_test.cpp
+++ b/src/test/app/Escrow_test.cpp
@@ -18,6 +18,7 @@
 //==============================================================================
 
 #include <test/jtx.h>
+#include <test/jtx/AMM.h>
 #include <xrpld/app/tx/applySteps.h>
 #include <xrpld/ledger/Dir.h>
 #include <xrpl/protocol/Feature.h>
@@ -4316,6 +4317,86 @@ struct Escrow_test : public beast::unit_test::suite
         env.close();
     }
 
+    void
+    testIOUAMM(FeatureBitset features)
+    {
+        testcase("IOU AMM");
+        using namespace test::jtx;
+        using namespace std::chrono;
+
+        Account alice{"alice"};
+        Account bob{"bob"};
+        Account gw{"gw"};
+
+        auto const USD = gw["USD"];
+
+        // AMMCreate fails - insufficient balance
+        Env env(*this, features);
+        env.fund(XRP(10000), alice, bob, gw);
+        env.close();
+
+        env.trust(USD(100000), alice);
+        env.close();
+        env(pay(gw, alice, USD(1000)));
+        env.close();
+
+        env(escrow(alice, bob, USD(1000)), finish_time(env.now() + 1s));
+        env.close();
+
+        // AMMCreate fails - insufficient balance
+        AMM ammFail(env, alice, XRP(1000), USD(1000), ter(tecUNFUNDED_AMM));
+
+        env(pay(gw, alice, USD(1000)));
+        env.close();
+
+        AMM ammAlice(env, alice, XRP(1000), USD(1000));
+        BEAST_EXPECT(ammAlice.ammExists());
+
+        // Single Asset Deposit fails - insufficient balance
+        ammAlice.deposit(
+            alice,
+            USD(1000),
+            std::nullopt,
+            std::nullopt,
+            std::nullopt,
+            ter(tecUNFUNDED_AMM));
+
+        // Double Asset Deposit fails - insufficient balance
+        ammAlice.deposit(
+            alice,
+            USD(1000),
+            XRP(1000),
+            std::nullopt,
+            std::nullopt,
+            ter(tecUNFUNDED_AMM));
+
+        auto const lptoken = ammAlice.getLPTokensBalance(alice);
+        // lock all LP tokens
+        env(escrow(alice, bob, STAmount{lptoken, ammAlice.lptIssue()}),
+            finish_time(env.now() + 1s));
+        env.close();
+
+        // Withdraw
+        ammAlice.withdraw(
+            alice, USD(1000), std::nullopt, std::nullopt, ter(tecAMM_BALANCE));
+        ammAlice.withdrawAll(alice, USD(1000), ter(tecAMM_BALANCE));
+
+        env(ammAlice.bid(BidArg{
+                .account = alice,
+                .assets = {{USD, XRP}},
+                .bidMax = 100,
+            }),
+            ter(tecAMM_INVALID_TOKENS));
+
+        ammAlice.vote(
+            alice,
+            1'000,
+            std::nullopt,
+            std::nullopt,
+            {{USD, XRP}},
+            ter(tecAMM_INVALID_TOKENS));
+    }
+
     static uint256
     getEscrowIndex(AccountID const& account, std::uint32_t uSequence)
     {
@@ -4729,6 +4810,7 @@ struct Escrow_test : public beast::unit_test::suite
         testIOUTLINSF(features);
         testIOUPrecisionLoss(features);
         testIOUClawback(features);
+        testIOUAMM(features);
     }
 
 public:
diff --git a/src/xrpld/app/misc/detail/AMMUtils.cpp b/src/xrpld/app/misc/detail/AMMUtils.cpp
index 8a6917b8c..854c2e1d9 100644
--- a/src/xrpld/app/misc/detail/AMMUtils.cpp
+++ b/src/xrpld/app/misc/detail/AMMUtils.cpp
@@ -148,6 +148,29 @@ ammLPHolds(
             // Put balance in account terms.
             amount.negate();
         }
+
+        // If tokens can be escrowed then they can be locked in the trustline
+        // which means we must never spend them until the escrow is released.
+        if (view.rules().enabled(featurePaychanAndEscrowForTokens) &&
+            sle->isFieldPresent(sfLockedBalance))
+        {
+            STAmount const lockedBalance = sle->getFieldAmount(sfLockedBalance);
+            STAmount const spendableBalance = amount -
+                (lpAccount > ammAccount ? -lockedBalance : lockedBalance);
+
+            // RH NOTE: this is defensively programmed, it should never fire
+            // if something bad does happen the trustline acts as a frozen line.
+            if (spendableBalance < beast::zero || spendableBalance > amount)
+            {
+                JLOG(j.error())
+                    << "SpendableBalance has illegal value in accountHolds "
+                    << spendableBalance;
+                amount.clear(Issue{currency, ammAccount});
+            }
+            else
+                amount = spendableBalance;
+        }
+
         amount.setIssuer(ammAccount);
 
         JLOG(j.trace()) << "ammLPHolds:"