Zaros Part 1

Summary

if a trader's positions are incurring negative P&L and the account is close to liquidation, the trader can avoid further losses by withdrawing collateral to meet the required maintenance margin. This strategiy allows the trader to manage the risk of forced liquidation and potentially minimizing some losses.

Vulnerability Details

The issue lies in the withdrawMargin function. If a user's P&L is negative and they anticipate further losses, they can withdraw collateral to the required maintenance margin. By doing so, they can close their positions before incurring additional losses.

Impact

Traders can avoid forced liquidation by strategically withdrawing collateral, thus maintaining control over their positions and potentially reducing their losses. This could undermine the liquidation process and affect the overall risk management of the protocol.

Tools Used

manual review

Recommendations

make sure that account is not supposed to withdraw till required maintainance margin