Centralization

The Trade.closeSpotByAdmin function allows admins to close any position in case of unexpected events, providing a fail-safe mechanism. However, this also introduces centralization risks that users should be aware of, as it grants a single point of control over the system. Therefore, it is recommended to implement additional measures to mitigate these risks, such as implementing a multi-signature requirement for admin access or limiting the frequency of usage.

Other centralization risks include the ability of the admin to pause and unpause the protocol at their discretion as well as their ability to cancel a vault.

We recommend that these centralization risks be clearly documented for users so that they are aware of the extent of the admin's control over the protocol. This can help users make informed decisions about their participation and investment in the protocol. Additionally, clear communication about the circumstances in which the admin may exercise these powers can help build trust and transparency with users.