#46676 [SC-Insight] Unrestricted Minimum Lockup Period

Submitted on Jun 3rd 2025 at 08:55:14 UTC by @Catchme for IOP | Paradex

• Report ID: #46676

• Report Type: Smart Contract

• Report severity: Insight

• Target: https://github.com/tradeparadex/audit-competition-may-2025/tree/main/vaults

• Impacts:

  • Griefing (e.g. no profit motive for an attacker, but damage to the users or the protocol)

Description

Brief/Intro

The documentation specifies that the lockup period should be between 1 and 4 days. However, the contract only restricts the maximum lockup period during initialization and does not enforce a minimum lockup period. Additionally, when updating the lockup period, there is no enforcement of the minimum lockup period, allowing the owner to bypass the lockup constraints.

Vulnerability Details

According to the official documentation, the lockup period should be within the range of 1 to 4 days. Nevertheless, the contract's deploy_vault function only limits the maximum lockup period during initialization and fails to impose a minimum lockup period. Furthermore, the set_lockup_period_seconds function, which is used to update the lockup period, does not include any restrictions on the minimum lockup period. This oversight enables the owner to circumvent the intended lockup period constraints.

 fn deploy_vault(
            ref self: ContractState,
            vault_owner: ContractAddress,
            vault_operator: ContractAddress,
            paraclear: ContractAddress,
            underlying: ContractAddress,
            profit_share_percentage: u128,
            tvl_limit: u128,
            lockup_period_seconds: u128,
        ) -> ContractAddress {
            self._assert_only_owner();
            assert(
                profit_share_percentage <= self.max_profit_share_percentage(),
                Errors::INVALID_PROFIT_SHARE,
            );
            assert(
                lockup_period_seconds <= self.max_lockup_period_seconds(),
                Errors::INVALID_LOCKUP_PERIOD,
            );
         }

        fn set_lockup_period_seconds(ref self: ContractState, new_lockup_period_seconds: u128) {
            let caller = get_caller_address();
            assert(caller == self.owner(), Errors::INVALID_CALLER); 
            assert(
                new_lockup_period_seconds <= self.lockup_period_seconds(),
                Errors::LOCKUP_PERIOD_INCREASE,
            );
            self._set_lockup_period_seconds(new_lockup_period_seconds);

            self
                .emit(
                    VaultLockupPeriodUpdated {
                        caller: caller, lockup_period_seconds: new_lockup_period_seconds,
                    },
                );
        }

Impact Details

The actual lockup period may not align with the expectations outlined in the official documentation.

Reference Links

• Paradex Documentation - Vault Parameters

Proof of Concept

Proof of Concept