Fallback behavior on oracle failure

Morpho V1 (Morpho Blue + MetaMorpho)'s assessment for RD-F-051 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.

Evidence summary #

No fallback on oracle failure. IOracle(marketParams.oracle).price() is called with no try/catch, no secondary oracle, no last-known-price. If oracle reverts, liquidations and health checks revert for that market. Isolated-market design limits blast radius but does not mitigate the per-market freeze.

Detail #

Source inspection of Morpho.sol confirms: oracle call at liquidation and _isHealthy with no error handling wrapper. Docs confirm: oracle-agnostic, no protocol-level fallback mechanism specified. Template: red = no fallback, primary oracle used unconditionally.

Sources #

GitHub
Morpho.solMorpho.sol — oracle call without try/catch at liquidationretrieved 2026-04-27
Docs
Oracle — Morpho DocsOracle docs — no protocol-level fallbackretrieved 2026-04-27

Methodology #

Identify the declared fallback behavior (pause, secondary source, last-known-price, revert) when the primary oracle reverts or reports a stale value.

See the full factor methodology and distribution across all protocols →

rubric_version v1.7.0 protocol morpho-v1 factor RD-F-051 score red collected_at 2026-04-30 21:19:13