Skip to content
Request an audit

‹ All findings

Liquidations can be prevented by updating the SL timeout before it expires

Crit/HighOstium·Three Sigma · RWA perpetuals DEX · 19th February, 20243S-OS-H01

ReportSource

Description

Traders who continually update their stop losses before the SL timeout expires will never face liquidation.

This is because liquidating via a LimitOrder of type LIQ is impossible when the limit order includes a stop loss. Additionally, triggering the stop loss with a LimitOrder of type SL is hindered by the timeout check.

A PoC can be found here.

Recommendation

If the trade is liquidatable, disregard the timeout for stop losses.

Status

Addressed in #32a1701.