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Most ManagedLeveragedVault functions are DoSed due to bad debt check

Low/InfoBeraborrow Managed Dens·Sherlock · CDP stablecoin · 25th April, 2025L-9

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Summary

Most ManagedLeveragedVault functions rely on totalAssets(), including ERC4626 compliant functions that must not revert; however, they will revert when there is bad debt.

Vulnerability Detail

ManagedLeveragedVault:: _assetsValuation() reverts when there is bad debt:

solidity
if (debtValue > collateralValue + exposureValue) {
    revert BadDebt(debtValue - (collateralValue + exposureValue));
}

This will make all ERC4626 functions revert that must not do so when called, becoming non compliant. Additionally, it is not possible to request withdrawal intents temporarily.

Impact

DoSed request intent and non ERC4626 compliance

Code Snippet

https://github.com/sherlock-audit/2025-04-beraborrow-vault-update/pull/1/files#diff-2d972f52027e0ba1065b2de2b424416244bfef9e2a79d2604e1687867f72c91eR985

Tool Used

Manual Review

Recommendation

Handle the situation instead of reverting to allow the normal behaviour of the mentioned functions (although the behaviour may be hard to define).