Root + Impact

Description

• In RebateFiHook.sol, there is function '_beforeInitialize', the condition check is wrong. It checks for 'currency1' two times in the AND operation. It should rather check for 'currency1' and 'currency0'. The pool will initialize successfully even if Refi not in the pool, as long as currency1 == Refi. If currency0 == Refi, the function incorrectly reverts → this breaks initialization. [here](https://github.com/CodeHawks-Contests/2025-11-rebatefi-hook/blob/add4b298d1246ad2f1df726216849c1c31f83065/src/RebateFiHook.sol#L123)

Risk

Likelihood:

• Whenever '_beforeInitialize' function gets called

Impact:

• Will not even if the 'currency0' is not in the pool.

Proof of Concept

Recommended Mitigation

• Instead of checking for currency1 twice, check for both currency0 and currency1.