Withdrawal finalization gas cost coverage

script/HarnessCore.s.sol

@@ -168,14 +168,11 @@ contract HarnessCore is Script {
         return (true, abi.decode(ret, (address)));
     }
 
-    function _arr6(
-        string memory a,
-        string memory b,
-        string memory c,
-        string memory d,
-        string memory e,
-        string memory f
-    ) private pure returns (string[] memory r) {
+    function _arr6(string memory a, string memory b, string memory c, string memory d, string memory e, string memory f)
+        private
+        pure
+        returns (string[] memory r)
+    {
         r = new string[](6);
         r[0] = a;
         r[1] = b;

src/StvPool.sol

@@ -21,6 +21,7 @@ contract StvPool is Initializable, ERC20Upgradeable, AllowList {
     error InvalidRequestType();
     error NotEnoughToRebalance();
     error UnassignedLiabilityOnVault();
+    error VaultInBadDebt();
 
     bytes32 public constant REQUEST_VALIDATOR_EXIT_ROLE = keccak256("REQUEST_VALIDATOR_EXIT_ROLE");
     bytes32 public constant TRIGGER_VALIDATOR_WITHDRAWAL_ROLE = keccak256("TRIGGER_VALIDATOR_WITHDRAWAL_ROLE");
@@ -314,6 +315,14 @@ contract StvPool is Initializable, ERC20Upgradeable, AllowList {
         if (totalUnassignedLiabilityShares() > 0) revert UnassignedLiabilityOnVault();
     }
 
+    /**
+     * @dev Checks if the vault is not in bad debt (value < liability)
+     */
+    function _checkNoBadDebt() internal view {
+        uint256 totalValueInStethShares = _getSharesByPooledEth(VAULT_HUB.totalValue(address(STAKING_VAULT)));
+        if (totalValueInStethShares < totalLiabilityShares()) revert VaultInBadDebt();
+    }
+
     // =================================================================================
     // STETH HELPERS
     // =================================================================================
@@ -346,9 +355,13 @@ contract StvPool is Initializable, ERC20Upgradeable, AllowList {
      * @dev Overridden method from ERC20 to prevent updates if there are unassigned liability
      */
     function _update(address _from, address _to, uint256 _value) internal virtual override {
+        // Ensure vault is not in bad debt (value < liability) before any transfer
+        _checkNoBadDebt();
+
         // In rare scenarios, the vault could have liability shares that are not assigned to any pool users
         // In such cases, it prevents any transfers until the unassigned liability is rebalanced
         _checkNoUnassignedLiability();
+
         super._update(_from, _to, _value);
     }
 
@@ -374,6 +387,7 @@ contract StvPool is Initializable, ERC20Upgradeable, AllowList {
      */
     function burnStvForWithdrawalQueue(uint256 _stv) external {
         _checkOnlyWithdrawalQueue();
+        _checkNoBadDebt();
         _checkNoUnassignedLiability();
         _burnUnsafe(address(WITHDRAWAL_QUEUE), _stv);
     }

src/StvStETHPool.sol

@@ -488,25 +488,29 @@ contract StvStETHPool is StvPool {
         IVaultHub.VaultConnection memory connection = DASHBOARD.vaultConnection();
 
         uint256 maxReserveRatioBP = TOTAL_BASIS_POINTS - 1;
+        uint256 maxForcedRebalanceThresholdBP = maxReserveRatioBP - 1;
 
         /// Invariants from the OperatorGrid
         assert(connection.reserveRatioBP > 0);
         assert(connection.reserveRatioBP <= maxReserveRatioBP);
         assert(connection.forcedRebalanceThresholdBP > 0);
-        assert(connection.forcedRebalanceThresholdBP <= connection.reserveRatioBP);
+        assert(connection.forcedRebalanceThresholdBP < connection.reserveRatioBP);
 
         uint16 newReserveRatioBP = uint16(Math.min(connection.reserveRatioBP + RESERVE_RATIO_GAP_BP, maxReserveRatioBP));
-        uint16 newThresholdBP =
-            uint16(Math.min(connection.forcedRebalanceThresholdBP + RESERVE_RATIO_GAP_BP, maxReserveRatioBP));
+        uint16 newForcedRebalanceThresholdBP = uint16(
+            Math.min(connection.forcedRebalanceThresholdBP + RESERVE_RATIO_GAP_BP, maxForcedRebalanceThresholdBP)
+        );
 
         StvStETHPoolStorage storage $ = _getStvStETHPoolStorage();
 
-        if (newReserveRatioBP == $.reserveRatioBP && newThresholdBP == $.forcedRebalanceThresholdBP) return;
+        if (newReserveRatioBP == $.reserveRatioBP && newForcedRebalanceThresholdBP == $.forcedRebalanceThresholdBP) {
+            return;
+        }
 
         $.reserveRatioBP = newReserveRatioBP;
-        $.forcedRebalanceThresholdBP = newThresholdBP;
+        $.forcedRebalanceThresholdBP = newForcedRebalanceThresholdBP;
 
-        emit VaultParametersUpdated(newReserveRatioBP, newThresholdBP);
+        emit VaultParametersUpdated(newReserveRatioBP, newForcedRebalanceThresholdBP);
     }
 
     // =================================================================================
@@ -671,6 +675,7 @@ contract StvStETHPool is StvPool {
         returns (uint256 stvToBurn)
     {
         _checkNoUnassignedLiability();
+        _checkNoBadDebt();
 
         if (_stethShares == 0) revert ZeroArgument();
         if (_stethShares > mintedStethSharesOf(_account)) revert InsufficientMintedShares();