Core Contracts

Summary

infinite loan rollover

Vulnerability Details

borrow function doesnt have expiration for loans and this will cause infinite loan roll over issue because the only thing that allow loans to be liquidatable is health factor of value of collateral of borrowers

so if value of collateral of borrower goeas under certain amount it becomes liquidatable and since borrower can always add new collateral he can never become liquidatable, and this creates the that there is no expiration and no info on when the loans are going to be paid out so protocol will have 0 control on this and doesnt have anything that guarantees that when the loan is going to be paid out, this is major issue in lending/ borrowing protocols as there is no info that when loans are going to be returned and protocol.

Impact

protocol will experience liquidity issues and there is no guarantee of when the loans are going to be paid out.

Tools Used

vs code

Recommendations

• consider modifying a expiry mechanism for loans so theres deadline for borrower to pay the loan