Zaros Part 1

Summary

According to the createPerpMarket, IMR and MMR can be equal:

Deploying market with such configuration will lead to almost instant position liquidation and will harm the users who will be good with being allowed to open positions with lower margin.

Vulnerability Details

When both IMR and MMR are equal or similar to each other, high percent of the positions will be instantly liquidated, when their order is being executed. This will happen because market pair is volatile and in short amount of time can fall below the IMR = MMR and keeper to identify and liquidate it.

Impact

Instant position liquidation since the configuration allows passing similar numbers as margin requirements.

Tools Used

Manual Review

Recommendations

Add some buffer to prevent passing similar numbers.