Borrower has no saying in the loan liquidation process in Lender contract
Summary
The function seizeLoan(uint256[] calldata loanIds) can be executed as long as long as the auction has ended. Even if the borrower has not defaulted.
Vulnerability Detail
The function seizeLoan(uint256[] calldata loanIds) public puts the borrower in a vulnerable position, as he has no control over the liquidation process.
Even though he won't have to pay any fees/interest, he will lose his collateral, he might lose money if the collateral price goes up.
Impact
Borrowers could face unmerited financial losses, especially if the collateral's value goes up.
Tools Used
A detailed review of the code base was conducted to identify this issue.
Recommendation:
Add a check for LTV, only liquidate the loan if LTV gets lower than maxLoanRatio.
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