Undetected Liquidation & Inadequate Settlement Mechanism
Summary
The contract’s liquidation and settlement mechanisms are inadequately implemented. Missing checks and fallbacks could allow liquidation events to be skipped or result in improper debt settlement.
Vulnerability Details
Improper liquidation check: The contract fails to always verify if liquidation conditions are met before triggering liquidation.
Missing debt settlement: The contract doesn't settle debt or positions properly during withdrawals or liquidations.
The liquidation threshold might not be updated or checked before making position changes, leading to missed liquidations.
Impact
Missed liquidations: Positions may remain open despite falling below liquidation thresholds, causing financial risk.
Incorrect debt management: Users could end up withdrawing more than their fair share if positions are not settled properly.
Tools Used
Manual Code Review
Recommendations
Verify liquidation conditions on every relevant operation.
Implement proper debt settlement mechanisms during position closures and withdrawals.
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Suppositions
There is no real proof, concrete root cause, specific impact, or enough details in those submissions. Examples include: "It could happen" without specifying when, "If this impossible case happens," "Unexpected behavior," etc. Make a Proof of Concept (PoC) using external functions and realistic parameters. Do not test only the internal function where you think you found something.
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