Unit Testing for Math Libraries

Unit testing for math libraries involves testing individual functions that perform calculations within a protocol. In derivatives, these calculations determine leverage, margin requirements, and liquidation prices.

Errors in these math functions can lead to incorrect financial outcomes, such as users being liquidated prematurely or the protocol becoming under-collateralized. Unit tests verify that these functions handle large numbers, rounding, and negative values correctly according to the protocol design.

By isolating these math components, developers can ensure the core financial logic is accurate. This is the foundation of a secure and reliable decentralized financial application.