One separate issue: why the system won’t allow users to close the position regardless of market hours? Closing of the position should not depend on the oracle price as long as there is sufficient long token to burn the short asset.
If this is the only reason, do you think it would be better for the users to be able to close positions at any time, and the fee could just be based on the last oracle prices?
I am moving more into that camp. Given that liquidations are intended to protect the protocol, the additional risks of allowing people to close their own positions (but not open new ones) at last oracle are actually pretty minimal.