Summary

User cannot keep health factor larger than MIN_HEALTH_FACTOR if L2 sequencer goes down.

Vulnerability Details

User is expected to keep health factor larger than MIN_HEALTH_FACTOR, or the user will be liquidated.

By depositing collateral or burning DCS, user can increase the health factor.

As the protocol will be deployed the contract in layer 2, however, if the L2 sequencer goes down and collateral price drops significantly during the downtime, user won't be able to increase health factor as transactions won't be executed, so user's health factor may become smaller than MIN_HEALTH_FACTOR and when the sequencer comes back online, user will be liquidated immediately.

Impact

User cannot keep health factor and will be liquidated.

Tools Used

Mannual Review

Recommendations

Consider give user extra time to increase the health factor if the sequencer goes down.