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Pausable Tokens like USDC can cause liquidation to Fail #639

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c4-bot-1 opened this issue Jun 14, 2024 · 0 comments
Open

Pausable Tokens like USDC can cause liquidation to Fail #639

c4-bot-1 opened this issue Jun 14, 2024 · 0 comments
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2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working 🤖_27_group AI based duplicate group recommendation sufficient quality report This report is of sufficient quality

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Lines of code

https://github.com/code-423n4/2024-05-predy/blob/main/src/libraries/logic/LiquidationLogic.sol#L99

Vulnerability details

Vulnerability Details

During liquidation, the remaining margin is transferred back to the trader.

Tokens like USDC can be paused, this means that during the pause state liquidation cannot occur, because the transfer will be blocked.

Impact

Impact, loss of funds to the protocol as Liquidatable positions can't be liquidated.

Tools Used

Manual

Recommended Mitigation Steps

Move all transfer logic out of the liquidation.

Assessed type

Token-Transfer

@c4-bot-1 c4-bot-1 added 2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working labels Jun 14, 2024
c4-bot-9 added a commit that referenced this issue Jun 14, 2024
@c4-bot-12 c4-bot-12 added the 🤖_27_group AI based duplicate group recommendation label Jun 14, 2024
howlbot-integration bot added a commit that referenced this issue Jun 17, 2024
@howlbot-integration howlbot-integration bot added the sufficient quality report This report is of sufficient quality label Jun 17, 2024
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Labels
2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working 🤖_27_group AI based duplicate group recommendation sufficient quality report This report is of sufficient quality
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