State-Based Validation

State-based validation is a security practice where a contract checks its internal state variables before allowing any further logic to proceed. This ensures that the protocol only acts when the conditions are mathematically and economically sound, such as verifying that a user has sufficient collateral before allowing a borrow request.

By forcing the contract to validate its own state, it becomes resistant to inputs that might otherwise lead to invalid or harmful transitions. This technique is often used in conjunction with other security measures to create a multi-layered defense.

It is particularly important in margin engines where liquidation thresholds must be strictly enforced. Proper state validation acts as a final check to prevent the execution of malicious or erroneous financial commands.