Liquidation risk from gmx funding fees
Title
Liquidation risk from gmx funding fees
Summary
The perpetualvault contract doesn't have a system to manage increasing leverage caused by gmx's negative funding fees.
Vulnerability Details
The contract lets users set a leverage level when they start but doesn't handle the impact of gmx's fees. two key problems arise:
Leverage silently increases as fees reduce collateral:
Example: $1000 position / $100 collateral = 10x initial leverage
After $20 fees: $1000 position / $80 collateral = 12.5x leverage
This creates risk of liquidations as positions become increasingly over-leveraged from fee impacts.
Impact
Without a fix, users risk losing funds as positions become too leveraged and get liquidated.
Tools Used
Manual Review
Recommendations
Add a function to check and adjust leverage:
Lead Judging Commences
Informational or Gas
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