# [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.

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

Issue

One account in the Restaking WETH Credit Manager (0x50ba...f4f6) holds RE7LRT (a Mellow Finance liquid restaking token) as collateral. The Mellow adapter used by the market does not support withdrawal operations for this token, making it impossible for the DAO liquidator to process this account.

Since the DAO liquidator cannot handle this account, Credit Managers will be unpaused as authorized by GIP-281, allowing any market participant to execute the liquidation. Once unpaused, the conditions of the GIP-276 Standing Mandate are no longer met.

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).