[GIP-282] RE7LRT Liquidation Disclaimer

Summary

This proposal establishes that the liquidation premium for the remaining RE7LRT credit account in the Restaking WETH Credit Manager may not be refunded to the account owner.

It also reports on the liquidation premiums collected during the March 16 expiration event, which are being refunded to account owners as described below.

Context

Per GIP-281, all legacy v3.0 Credit Accounts on Ethereum were expired on March 16, 2026. The expiration was announced multiple times through governance proposals (GIP-277, GIP-278, GIP-279, GIP-281) and public communications, giving account owners ample time to close their positions voluntarily.

Credit Managers were paused before expiration to restrict liquidations to the whitelisted DAO liquidator, ensuring liquidation profits are returned to account owners. Most accounts were successfully liquidated by the DAO liquidator according to GIP-281.

Per the Standing Mandate established in GIP-276, liquidation profits are classified as user property and refunded automatically only when all of the following conditions are met:

1. The liquidation occurs while the market is paused
2. The liquidation is performed by the whitelisted Emergency Liquidator

Liquidation Premiums — March 16, 2026

Seven credit accounts were liquidated by the DAO liquidator while Credit Managers were paused. Both conditions of the Standing Mandate were met, and the following premiums are being refunded to the respective account owners:

#	Market	TX	Credit Account	Credit Manager	Borrower	Premium	~USD
1	llamathena	0x50e959cf…	0xDAAb765a…	0x3EB95430…	0x4e9502db…	1,117.02 USDC	$1,117
2	llamathena	0x99ec9093…	0xf7660006…	0x3EB95430…	0x605d2105…	3,829.59 USDC	$3,830
3	Trade USDC T2	0xaa0d82d3…	0xAc9eAF17…	0xeA7c2842…	0xdba8cd68…	2,445.47 USDC	$2,445
4	Trade WBTC T1	0x8638ca61…	0xdF5c4682…	0xEfC13475…	0x9f7d059e…	0.042150 WBTC	$3,118
5	Restaking WETH	0xfae65e8a…	0x557173c4…	0x50bA4832…	0x8e4ec074…	1.505000 WETH	$3,495
6	Restaking WETH	0x23c1902e…	0xB75a2BED…	0x50bA4832…	0xd6484a99…	1.090100 WETH	$2,532
7	llamathena	0x1db421c5…	0x31608589…	0xe35eb22a…	0x3bdbad7a…	2,153.48 USDT	$2,153

Issue

One account in the Restaking WETH Credit Manager (0x50bA4832…) holds RE7LRT (a Mellow Finance liquid restaking token) as collateral. Unlike other collateral types, RE7LRT requires going through the Mellow adapter to withdraw — and this particular adapter does not support the withdrawal operation needed for liquidation. This means the DAO liquidator simply cannot convert this collateral back to the underlying token and close the account.

Since the DAO liquidator cannot handle this account, Credit Managers will be unpaused as authorized by GIP-281, allowing any market participant to find a way to execute the liquidation. Once unpaused, the conditions of the GIP-276 Standing Mandate are no longer met — the market won't be paused, and the liquidator won't be the whitelisted one.

Proposal

Acknowledge that the liquidation premium for the RE7LRT credit account may not be refunded to the account owner, as the liquidation will occur outside the scope of the GIP-276 Standing Mandate (unpaused market, non-whitelisted liquidator).