Reimburse: Vault loses 110% collateral, to get it back to 10% effective loss they get to have the equivalent of 100% in KBTC
Unfortunately this doesn't account for the case when the Vault is liquidated, which on reimburse would still send them the "to-be-burned" KBTC. However because the Vault is already liquidated there is insufficient collateral to back these tokens, they should be burned and the accounting on the liquidation vault should be updated to reflect the decreased issued tokens.
On
cancel_redeemwe have two branches:Unfortunately this doesn't account for the case when the Vault is liquidated, which on reimburse would still send them the "to-be-burned" KBTC. However because the Vault is already liquidated there is insufficient collateral to back these tokens, they should be burned and the accounting on the liquidation vault should be updated to reflect the decreased issued tokens.