Partial Asset Settlement
Partial asset settlement refers to a failure in the migration process where only a portion of a user's assets are successfully moved to the new contract, while the remainder are left in the old one. This creates an inconsistent state where the user's total balance is split across two contracts, complicating withdrawals and position management.
This is a serious issue for derivative protocols where collateral requirements must be met across all assets. If the migration logic does not ensure that the entire balance is moved atomically, it can lead to incorrect liquidation or other financial errors.
Developers must design migration processes that treat user balances as a single, indivisible unit to prevent partial settlement failures.