DeFiFoundry
50,000 USDC
View results
Submission Details
Severity: low
Invalid

Lack of Enforced Leverage Cap Despite Stated Max 3x

Contract does not explicitly verify leverage <= 3x, allowing admin to set leverage above the intended limit.

Summary

  • The code’s documentation states a max leverage of 3x.

  • However, the initialize function and subsequent set calls do not enforce leverage <= 30000.

Vulnerability Details

  • The vault’s logic depends on a stable leverage assumption (≤ 3x).

  • An owner or misconfiguration could set a higher leverage, increasing liquidation risks.

Impact

  • Depositors expect a safe maximum leverage but could instead face extreme leverage and rapid liquidation.

  • This breaks user trust and can cause unexpected losses.

Tools Used

  • Code reading around PerpetualVault.initialize.

Recommendations

  • Add a require(leverage <= 30000) in the constructor or a setter function.

  • Enforce any additional constraints (e.g., nonzero or minimum leverage) if needed.

Updates

Lead Judging Commences

n0kto Lead Judge 3 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

Admin is trusted / Malicious keepers

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point. Keepers are added by the admin, there is no "malicious keeper" and if there is a problem in those keepers, that's out of scope. ReadMe and known issues states: " * System relies heavily on keeper for executing trades * Single keeper point of failure if not properly distributed * Malicious keeper could potentially front-run or delay transactions * Assume that Keeper will always have enough gas to execute transactions. There is a pay execution fee function, but the assumption should be that there's more than enough gas to cover transaction failures, retries, etc * There are two spot swap functionalies: (1) using GMX swap and (2) using Paraswap. We can assume that any swap failure will be retried until success. " " * Heavy dependency on GMX protocol functioning correctly * Owner can update GMX-related addresses * Changes in GMX protocol could impact system operations * We can assume that the GMX keeper won't misbehave, delay, or go offline. " "Issues related to GMX Keepers being DOS'd or losing functionality would be considered invalid."

n0kto Lead Judge 3 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

Admin is trusted / Malicious keepers

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point. Keepers are added by the admin, there is no "malicious keeper" and if there is a problem in those keepers, that's out of scope. ReadMe and known issues states: " * System relies heavily on keeper for executing trades * Single keeper point of failure if not properly distributed * Malicious keeper could potentially front-run or delay transactions * Assume that Keeper will always have enough gas to execute transactions. There is a pay execution fee function, but the assumption should be that there's more than enough gas to cover transaction failures, retries, etc * There are two spot swap functionalies: (1) using GMX swap and (2) using Paraswap. We can assume that any swap failure will be retried until success. " " * Heavy dependency on GMX protocol functioning correctly * Owner can update GMX-related addresses * Changes in GMX protocol could impact system operations * We can assume that the GMX keeper won't misbehave, delay, or go offline. " "Issues related to GMX Keepers being DOS'd or losing functionality would be considered invalid."

Support

FAQs

Can't find an answer? Chat with us on Discord, Twitter or Linkedin.