{"componentChunkName":"component---node-modules-rocketseat-gatsby-theme-docs-core-src-templates-docs-query-js","path":"/manual-review/MorphoLiquidator-MLR","result":{"data":{"mdx":{"id":"8f943202-f707-5548-a401-393de96f64bf","excerpt":"MLR-01M: Potentially Outdated Position Information Type Severity Location Logical Fault MorphoLiquidator.sol:L239 ,  L249 Description: THe  MorphoLiquidator…","fields":{"slug":"/manual-review/MorphoLiquidator-MLR/"},"frontmatter":{"title":"MorphoLiquidator Manual Review Findings","description":"Contains all the findings that relate to manual review on the contract codebase","image":null,"disableTableOfContents":null},"body":"var _excluded = [\"components\"];\n\nfunction _extends() { _extends = Object.assign || function (target) { for (var i = 1; i < arguments.length; i++) { var source = arguments[i]; for (var key in source) { if (Object.prototype.hasOwnProperty.call(source, key)) { target[key] = source[key]; } } } return target; }; return _extends.apply(this, arguments); }\n\nfunction _objectWithoutProperties(source, excluded) { if (source == null) return {}; var target = _objectWithoutPropertiesLoose(source, excluded); var key, i; if (Object.getOwnPropertySymbols) { var sourceSymbolKeys = Object.getOwnPropertySymbols(source); for (i = 0; i < sourceSymbolKeys.length; i++) { key = sourceSymbolKeys[i]; if (excluded.indexOf(key) >= 0) continue; if (!Object.prototype.propertyIsEnumerable.call(source, key)) continue; target[key] = source[key]; } } return target; }\n\nfunction _objectWithoutPropertiesLoose(source, excluded) { if (source == null) return {}; var target = {}; var sourceKeys = Object.keys(source); var key, i; for (i = 0; i < sourceKeys.length; i++) { key = sourceKeys[i]; if (excluded.indexOf(key) >= 0) continue; target[key] = source[key]; } return target; }\n\n/* @jsxRuntime classic */\n\n/* @jsx mdx */\nvar _frontmatter = {\n  \"title\": \"MorphoLiquidator Manual Review Findings\",\n  \"description\": \"Contains all the findings that relate to manual review on the contract codebase\"\n};\nvar layoutProps = {\n  _frontmatter: _frontmatter\n};\nvar MDXLayout = \"wrapper\";\nreturn function MDXContent(_ref) {\n  var components = _ref.components,\n      props = _objectWithoutProperties(_ref, _excluded);\n\n  return mdx(MDXLayout, _extends({}, layoutProps, props, {\n    components: components,\n    mdxType: \"MDXLayout\"\n  }), mdx(\"h2\", {\n    \"id\": \"span-idmlr-01mmlr-01m-potentially-outdated-position-informationspan\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h2\",\n    \"href\": \"#span-idmlr-01mmlr-01m-potentially-outdated-position-informationspan\",\n    \"aria-label\": \"span idmlr 01mmlr 01m potentially outdated position informationspan permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    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parentName: \"table\"\n  }, mdx(\"tr\", {\n    parentName: \"tbody\"\n  }, mdx(\"td\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, mdx(\"a\", {\n    parentName: \"td\",\n    \"href\": \"/reports/optimex-lending-contracts-68cafda372cb00001541ecb0/appendix/finding-types#logical-fault\"\n  }, \"Logical Fault\")), mdx(\"td\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, mdx(\"img\", {\n    parentName: \"td\",\n    \"className\": \"o-severity o-informational\",\n    \"src\": \"https://omniscia.io/report-assets/informational.png\"\n  })), mdx(\"td\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, mdx(\"a\", {\n    parentName: \"td\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L239\"\n  }, \"MorphoLiquidator.sol:L239\"), \", \", mdx(\"a\", {\n    parentName: \"td\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L249\"\n  }, \"L249\"))))), mdx(\"h3\", {\n    \"id\": \"description\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#description\",\n    \"aria-label\": \"description permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Description:\"), mdx(\"p\", null, \"THe \", mdx(\"a\", {\n    parentName: \"p\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L225-L333\"\n  }, mdx(\"inlineCode\", {\n    parentName: \"a\"\n  }, \"MorphoLiquidator::payment\")), \" function invokes the \", mdx(\"a\", {\n    parentName: \"p\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L426-L455\"\n  }, mdx(\"inlineCode\", {\n    parentName: \"a\"\n  }, \"MorphoLiquidator::_precheck\")), \" function before accruing interest for a particular market, yielding an inaccurate \", mdx(\"inlineCode\", {\n    parentName: \"p\"\n  }, \"position.supplyShares\"), \" data point if the \", mdx(\"inlineCode\", {\n    parentName: \"p\"\n  }, \"apm\"), \" is also a fee recipient for the specified market ID.\"), mdx(\"h3\", {\n    \"id\": \"impact\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#impact\",\n    \"aria-label\": \"impact permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Impact:\"), mdx(\"p\", null, \"This issue represents a latent vulnerability in the codebase that can manifest in a future iteration.\"), mdx(\"h3\", {\n    \"id\": \"example\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#example\",\n    \"aria-label\": \"example permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Example:\"), mdx(\"pre\", null, mdx(\"code\", {\n    parentName: \"pre\",\n    \"className\": \"language-sol\",\n    \"metastring\": \"title=contracts/MorphoLiquidator.sol highlight={7,17,18,19} lineNumbers=true lineOffset=232\",\n    \"title\": \"contracts/MorphoLiquidator.sol\",\n    \"highlight\": \"{7,17,18,19}\",\n    \"lineNumbers\": \"true\",\n    \"lineOffset\": \"232\"\n  }, \"(\\n    IMorpho morpho,\\n    bytes32 marketId,\\n    Id id,\\n    address validator,\\n    MarketParams memory marketParams,\\n    Position memory position\\n) = _precheck(apm, positionId);\\nrequire(amount > 0, ErrorLib.ZeroAmount());\\n\\n/// Transfer the payment from the liquidator to this contract\\naddress sender = msg.sender;\\naddress loanToken = marketParams.loanToken;\\nIERC20(loanToken).safeTransferFrom(sender, address(this), amount);\\n\\n/// Accrue the interest and retrieve the position's status from Morpho\\nmorpho.accrueInterest(marketParams);\\nuint256 totalCollateral = position.collateral;\\nuint256 borrowShares = position.borrowShares;\\n\")), mdx(\"h3\", {\n    \"id\": \"recommendation\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#recommendation\",\n    \"aria-label\": \"recommendation permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Recommendation:\"), mdx(\"p\", null, \"Although this particular data point remains unused within the code, we believe that the code should either retrieve the only data points it requires in the \", mdx(\"a\", {\n    parentName: \"p\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L426-L455\"\n  }, mdx(\"inlineCode\", {\n    parentName: \"a\"\n  }, \"MorphoLiquidator::_precheck\")), \" function, document this caveat in the function itself, or accrue interest before invoking it.\"), mdx(\"h3\", {\n    \"id\": \"alleviation-c11bae0aacaeb7f4e4b53c864f96917ca574182f\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#alleviation-c11bae0aacaeb7f4e4b53c864f96917ca574182f\",\n    \"aria-label\": \"alleviation c11bae0aacaeb7f4e4b53c864f96917ca574182f permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Alleviation (c11bae0aacaeb7f4e4b53c864f96917ca574182f):\"), mdx(\"p\", null, \"The Optimex team assessed this exhibit and opted to acknowledge it, introducing documentation to avoid future updates from resulting in misbehaviours.\"), mdx(\"h2\", {\n    \"id\": \"span-idmlr-02mmlr-02m-profit-capture-in-bad-debt-scenariosspan\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h2\",\n    \"href\": \"#span-idmlr-02mmlr-02m-profit-capture-in-bad-debt-scenariosspan\",\n    \"aria-label\": \"span idmlr 02mmlr 02m profit capture in bad debt scenariosspan permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), mdx(\"span\", {\n    id: \"MLR-02M\"\n  }, \"MLR-02M: Profit Capture in Bad Debt Scenarios\")), mdx(\"table\", null, mdx(\"thead\", {\n    parentName: \"table\"\n  }, mdx(\"tr\", {\n    parentName: \"thead\"\n  }, mdx(\"th\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, \"Type\"), mdx(\"th\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, \"Severity\"), mdx(\"th\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, \"Location\"))), mdx(\"tbody\", {\n    parentName: \"table\"\n  }, mdx(\"tr\", {\n    parentName: \"tbody\"\n  }, mdx(\"td\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, mdx(\"a\", {\n    parentName: \"td\",\n    \"href\": \"/reports/optimex-lending-contracts-68cafda372cb00001541ecb0/appendix/finding-types#logical-fault\"\n  }, \"Logical Fault\")), mdx(\"td\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, mdx(\"img\", {\n    parentName: \"td\",\n    \"className\": \"o-severity o-medium\",\n    \"src\": \"https://omniscia.io/report-assets/medium.png\"\n  })), mdx(\"td\", {\n    parentName: \"tr\",\n    \"align\": null\n  }, mdx(\"a\", {\n    parentName: \"td\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L502-L512\"\n  }, \"MorphoLiquidator.sol:L502-L512\"))))), mdx(\"h3\", {\n    \"id\": \"description-1\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#description-1\",\n    \"aria-label\": \"description 1 permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Description:\"), mdx(\"p\", null, \"The \", mdx(\"a\", {\n    parentName: \"p\",\n    \"href\": \"https://github.com/optimex-xyz/lending-smartcontract/blob/97c899309fe5c36d8e1b32faca40286bfd78b0ca/contracts/MorphoLiquidator.sol#L457-L541\"\n  }, mdx(\"inlineCode\", {\n    parentName: \"a\"\n  }, \"MorphoLiquidator::_liquidate\")), \" function effectively disincentivizes bad debt to be repaid due to capturing profit at the expense of the liquidator instead of crediting it to the \", mdx(\"inlineCode\", {\n    parentName: \"p\"\n  }, \"surplus\"), \" yielded back to them.\"), mdx(\"h3\", {\n    \"id\": \"impact-1\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#impact-1\",\n    \"aria-label\": \"impact 1 permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Impact:\"), mdx(\"p\", null, \"Bad debt positions will not be properly incentivized for liquidation due to unfair profit capture toward the Optimex treasury.\"), mdx(\"h3\", {\n    \"id\": \"example-1\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#example-1\",\n    \"aria-label\": \"example 1 permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Example:\"), mdx(\"pre\", null, mdx(\"code\", {\n    parentName: \"pre\",\n    \"className\": \"language-sol\",\n    \"metastring\": \"title=contracts/MorphoLiquidator.sol highlight={12} lineNumbers=true lineOffset=500\",\n    \"title\": \"contracts/MorphoLiquidator.sol\",\n    \"highlight\": \"{12}\",\n    \"lineNumbers\": \"true\",\n    \"lineOffset\": \"500\"\n  }, \"} else {\\n    /// @dev For a bad debt, the `seizedCollateral` and `repaidDebt` are calculated using the `totalCollateral`.\\n    /// The `surplus` is set to `0`.\\n    /// Any leftover amount after covering debt is recorded as `profit`.\\n    (result.seizedCollateral, result.repaidDebt) = morpho.liquidate(\\n        marketParams,\\n        apm,\\n        totalCollateral,\\n        0,\\n        data\\n    );\\n    result.profit = amount - result.repaidDebt;\\n}\\n\")), mdx(\"h3\", {\n    \"id\": \"recommendation-1\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#recommendation-1\",\n    \"aria-label\": \"recommendation 1 permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Recommendation:\"), mdx(\"p\", null, \"We advise the code to forfeit any profit in bad debt scenarios to ensure such positions are liquidated in a timely manner.\"), mdx(\"h3\", {\n    \"id\": \"alleviation-c11bae0aacaeb7f4e4b53c864f96917ca574182f-1\",\n    \"style\": {\n      \"position\": \"relative\"\n    }\n  }, mdx(\"a\", {\n    parentName: \"h3\",\n    \"href\": \"#alleviation-c11bae0aacaeb7f4e4b53c864f96917ca574182f-1\",\n    \"aria-label\": \"alleviation c11bae0aacaeb7f4e4b53c864f96917ca574182f 1 permalink\",\n    \"className\": \"anchor before\"\n  }, mdx(\"svg\", {\n    parentName: \"a\",\n    \"aria-hidden\": \"true\",\n    \"focusable\": \"false\",\n    \"height\": \"16\",\n    \"version\": \"1.1\",\n    \"viewBox\": \"0 0 16 16\",\n    \"width\": \"16\"\n  }, mdx(\"path\", {\n    parentName: \"svg\",\n    \"fillRule\": \"evenodd\",\n    \"d\": \"M4 9h1v1H4c-1.5 0-3-1.69-3-3.5S2.55 3 4 3h4c1.45 0 3 1.69 3 3.5 0 1.41-.91 2.72-2 3.25V8.59c.58-.45 1-1.27 1-2.09C10 5.22 8.98 4 8 4H4c-.98 0-2 1.22-2 2.5S3 9 4 9zm9-3h-1v1h1c1 0 2 1.22 2 2.5S13.98 12 13 12H9c-.98 0-2-1.22-2-2.5 0-.83.42-1.64 1-2.09V6.25c-1.09.53-2 1.84-2 3.25C6 11.31 7.55 13 9 13h4c1.45 0 3-1.69 3-3.5S14.5 6 13 6z\"\n  }))), \"Alleviation (c11bae0aacaeb7f4e4b53c864f96917ca574182f):\"), mdx(\"p\", null, \"The Optimex team evaluated this exhibit and clarified that the off-chain processes of Optimex rely on agreements between Optimex and liquidators with proceeds being split between them.\"), mdx(\"p\", null, \"As profit is meant to be redirected to liquidators through secondary transactional channels, we consider this exhibit as safely acknowledged.\"));\n}\n;\nMDXContent.isMDXComponent = true;","headings":[{"depth":2,"value":"<span id=\"MLR-01M\">MLR-01M: Potentially Outdated Position Information</span>"},{"depth":3,"value":"Description:"},{"depth":3,"value":"Impact:"},{"depth":3,"value":"Example:"},{"depth":3,"value":"Recommendation:"},{"depth":3,"value":"Alleviation (c11bae0aacaeb7f4e4b53c864f96917ca574182f):"},{"depth":2,"value":"<span id=\"MLR-02M\">MLR-02M: Profit Capture in Bad Debt Scenarios</span>"},{"depth":3,"value":"Description:"},{"depth":3,"value":"Impact:"},{"depth":3,"value":"Example:"},{"depth":3,"value":"Recommendation:"},{"depth":3,"value":"Alleviation (c11bae0aacaeb7f4e4b53c864f96917ca574182f):"}]}},"pageContext":{"slug":"/manual-review/MorphoLiquidator-MLR/","prev":{"label":"AccountPositionManager.sol (APM-M)","link":"/manual-review/AccountPositionManager-APM"},"next":{"label":"OptimexBTC.sol (OBT-M)","link":"/manual-review/OptimexBTC-OBT"}}},"staticQueryHashes":["1954253342","2328931024","2501019404","973074209"]}