From 3f2588beb2da95f7899dc97951c5f07c6b4e3b90 Mon Sep 17 00:00:00 2001
From: Hieu Vu <72878483+hieuvubk@users.noreply.github.com>
Date: Sat, 12 Oct 2024 00:54:27 +0700
Subject: [PATCH] handle case vault not enough for penalty

---
 x/vaults/keeper/vault.go | 12 ++++++++++++
 x/vaults/types/msgs.go   |  1 -
 2 files changed, 12 insertions(+), 1 deletion(-)

diff --git a/x/vaults/keeper/vault.go b/x/vaults/keeper/vault.go
index b8cd10c9..cad817d6 100644
--- a/x/vaults/keeper/vault.go
+++ b/x/vaults/keeper/vault.go
@@ -522,6 +522,13 @@ func (k *Keeper) Liquidate(
 			//TODO: Sort by CR in GetLiquidations could reduce calculate here
 			for _, vault := range liquidation.LiquidatingVaults {
 				penaltyAmount := math.LegacyNewDecFromInt(vault.Debt.Amount).Quo(vault.LiquidationPrice).Mul(vm.Params.LiquidationPenalty).TruncateInt()
+				
+				// If collateral locked not enough for penalty,
+				// transfer all and mark vault CLOSED
+				if penaltyAmount.GT(vault.CollateralLocked.Amount) {
+					penaltyAmount = vault.CollateralLocked.Amount
+					vault.Status = types.CLOSED
+				}
 				err := k.bankKeeper.SendCoinsFromModuleToModule(ctx, types.ModuleName, types.ReserveModuleName, sdk.NewCoins(sdk.NewCoin(liquidation.Denom, penaltyAmount)))
 				if err != nil {
 					return err
@@ -539,8 +546,13 @@ func (k *Keeper) Liquidate(
 			})
 
 			// Try to reconstitue vaults
+			// list contains both LIQUIDATING & CLOSED,
+			// only reconstitue LIQUIDATING vaults
 			totalRemainDebt := totalDebt.Sub(sold)
 			for _, vault := range liquidation.LiquidatingVaults {
+				if vault.Status != types.LIQUIDATING {
+					continue
+				}
 				// if remain debt & collateral can cover full vault
 				// open again
 				if vault.Debt.IsLTE(totalRemainDebt) && vault.CollateralLocked.IsLTE(totalCollateralRemain) {
diff --git a/x/vaults/types/msgs.go b/x/vaults/types/msgs.go
index ef34e08e..17436848 100644
--- a/x/vaults/types/msgs.go
+++ b/x/vaults/types/msgs.go
@@ -14,7 +14,6 @@ const (
 
 var (
 	Query_serviceDesc = _Query_serviceDesc
-	Msg_serviceDesc   = _Msg_serviceDesc
 )
 
 func NewMsgCreateVault(owner string, collateral, minted sdk.Coin) MsgCreateVault {