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Update ValidationLogic.sol #940

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Update ValidationLogic.sol #940

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11 changes: 10 additions & 1 deletion contracts/protocol/libraries/logic/ValidationLogic.sol
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Original file line number Diff line number Diff line change
Expand Up @@ -242,9 +242,18 @@ library ValidationLogic {
require(vars.userCollateralInBaseCurrency != 0, Errors.COLLATERAL_BALANCE_IS_ZERO);
require(vars.currentLtv != 0, Errors.LTV_VALIDATION_FAILED);

/**
* @notice The decision to use `>` instead of `>=` in this require check is based on the following rationale:
*
* Whenever a user opens a borrow position, the borrow rate will immediately be greater than 0.
* This generally (though not always) causes the health factor (HF) to decrease minimally.
* Consequently, anyone opening a position at 1HF will see their HF drop below 1HF immediately.
* While this scenario can also occur at 1.00000000...1 HF, determining the precise condition
* is debatable and was set during the design stage without compelling reasons for alteration.
*/
require(
vars.healthFactor > HEALTH_FACTOR_LIQUIDATION_THRESHOLD,
Errors.HEALTH_FACTOR_LOWER_THAN_LIQUIDATION_THRESHOLD
Errors.HEALTH_FACTOR_TOO_LOW
);

vars.amountInBaseCurrency =
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