From 95e3225ae516f89d1bd0bbac94605829f2b18cd9 Mon Sep 17 00:00:00 2001
From: MathisGD <mathis@morpho.xyz>
Date: Sun, 10 Dec 2023 16:34:46 +0100
Subject: [PATCH] fix: issue-503

---
 src/Morpho.sol             | 8 ++++----
 src/interfaces/IMorpho.sol | 6 ++++--
 2 files changed, 8 insertions(+), 6 deletions(-)

diff --git a/src/Morpho.sol b/src/Morpho.sol
index 688113b2d..9d1b805b9 100644
--- a/src/Morpho.sol
+++ b/src/Morpho.sol
@@ -400,11 +400,11 @@ contract Morpho is IMorphoStaticTyping {
             position[id][borrower].borrowShares = 0;
         }
 
-        IERC20(marketParams.collateralToken).safeTransfer(msg.sender, seizedAssets);
-
         // `repaidAssets` may be greater than `totalBorrowAssets` by 1.
         emit EventsLib.Liquidate(id, msg.sender, borrower, repaidAssets, repaidShares, seizedAssets, badDebtShares);
 
+        IERC20(marketParams.collateralToken).safeTransfer(msg.sender, seizedAssets);
+
         if (data.length > 0) IMorphoLiquidateCallback(msg.sender).onMorphoLiquidate(repaidAssets, data);
 
         IERC20(marketParams.loanToken).safeTransferFrom(msg.sender, address(this), repaidAssets);
@@ -416,10 +416,10 @@ contract Morpho is IMorphoStaticTyping {
 
     /// @inheritdoc IMorphoBase
     function flashLoan(address token, uint256 assets, bytes calldata data) external {
-        IERC20(token).safeTransfer(msg.sender, assets);
-
         emit EventsLib.FlashLoan(msg.sender, token, assets);
 
+        IERC20(token).safeTransfer(msg.sender, assets);
+
         IMorphoFlashLoanCallback(msg.sender).onMorphoFlashLoan(assets, data);
 
         IERC20(token).safeTransferFrom(msg.sender, address(this), assets);
diff --git a/src/interfaces/IMorpho.sol b/src/interfaces/IMorpho.sol
index 502bdd31b..fb53f510c 100644
--- a/src/interfaces/IMorpho.sol
+++ b/src/interfaces/IMorpho.sol
@@ -129,7 +129,8 @@ interface IMorphoBase {
 
     /// @notice Supplies `assets` or `shares` on behalf of `onBehalf`, optionally calling back the caller's
     /// `onMorphoSupply` function with the given `data`.
-    /// @dev Either `assets` or `shares` should be zero. Most usecases should rely on `assets` as an input so the caller
+    /// @dev Either `assets` or `shares` should be zero. Most use cases should rely on `assets` as an input so the
+    /// caller
     /// is guaranteed to have `assets` tokens pulled from their balance, but the possibility to mint a specific amount
     /// of shares is given for full compatibility and precision.
     /// @dev Supplying a large amount can revert for overflow.
@@ -172,7 +173,8 @@ interface IMorphoBase {
     ) external returns (uint256 assetsWithdrawn, uint256 sharesWithdrawn);
 
     /// @notice Borrows `assets` or `shares` on behalf of `onBehalf` to `receiver`.
-    /// @dev Either `assets` or `shares` should be zero. Most usecases should rely on `assets` as an input so the caller
+    /// @dev Either `assets` or `shares` should be zero. Most use cases should rely on `assets` as an input so the
+    /// caller
     /// is guaranteed to borrow `assets` of tokens, but the possibility to mint a specific amount of shares is given for
     /// full compatibility and precision.
     /// @dev `msg.sender` must be authorized to manage `onBehalf`'s positions.