Zaros Part 1

Summary

The LiquidationFee is not proportional to the position size, which will end up sending too much and even the entire remaining part of the position to the liquidationFeeRecipient, leaving the Zaros protocol with nothing.

Vulnerability Details

When a position is liquidated, a liquidation fee is applied, but if the position.size is small enough, the fee can be very high for it, as it is always constant.

Impact

Users with large and small positions will pay the same fee, which is not fair.

Tools Used

Manual Review

Recommendations

Consider applying a proportional liquidation fee based on position size, as in Synthetix - https://github.com/Synthetixio/synthetix/blob/e2243e8afc37d481003ecd9b4eb44dcb804185e9/contracts/PerpsV2MarketBase.sol#L361-L378