Submitted by ladboy233
As long as user approve the PositionManager for as a operator of their NFT position.
Even the particle position manager does not hold the Uniswap V3 NFT.
Anyone can open the position on behalf of the original NFT owner.
The original owner may incapable of calling reclaimLiquidity and the borrower just open the position to reduce the original liquidity, as long as he maintain sufficient premium, he will never be liquidated.
Even if the original own is capable of calling reclaim liquidity, the borrower is still capable of leverage trading for LOAN_TERM length while forcefully reduce the liquidity of original nft. This is because when open the position, the code does not check if the particile position manager hold the Uniswap V3 NFT. The external call to decrease liquidity and collect the token is subject to the check:
https://etherscan.io/address/0xc36442b4a4522e871399cd717abdd847ab11fe88#code#F1#L184
While user approve ParticlePositionManager is not a normal flow, user approve particlePositionManager does not signal user wants to borrow the fund. Only when the user transfers the NFT into the ParticlePositionManager, the borrower can borrow with lenders implicit permission.
Recommendation validating the particle position manager holds the position nft when position is opened.
wukong-particle (Particle) confirmed and commented:
