diff --git a/.changeset/famous-mangos-sort.md b/.changeset/famous-mangos-sort.md
new file mode 100644
index 00000000..7fd41b3e
--- /dev/null
+++ b/.changeset/famous-mangos-sort.md
@@ -0,0 +1,5 @@
+---
+"@exactly/protocol": patch
+---
+
+🐛 market: redirect earnings to accumulator in clear bad debt
diff --git a/.gas-snapshot b/.gas-snapshot
index d591fe0a..991c553b 100644
--- a/.gas-snapshot
+++ b/.gas-snapshot
@@ -143,64 +143,65 @@ InterestRateModelTest:testFixedRateRevertUtilizationExceeded() (gas: 2056183)
 InterestRateModelTest:testFloatingBorrowRate() (gas: 2048324)
 InterestRateModelTest:testFuzzFixedRateGrowth(uint256,uint256,uint256,uint256) (runs: 256, μ: 2069159, ~: 2066427)
 InterestRateModelTest:testFuzzFixedRateTimeSensitivity(uint256,uint256,uint256) (runs: 256, μ: 2075956, ~: 2075994)
-InterestRateModelTest:testFuzzReferenceLegacyRateFixed(uint32,uint256,uint256[2],uint256[2],uint256,uint256,uint256) (runs: 256, μ: 10060739, ~: 10181646)
+InterestRateModelTest:testFuzzReferenceLegacyRateFixed(uint32,uint256,uint256[2],uint256[2],uint256,uint256,uint256) (runs: 256, μ: 10068414, ~: 10189321)
 InterestRateModelTest:testFuzzReferenceRateFixed(uint256,uint256,uint256,uint256,uint256,uint256,(uint256,uint256,uint256,uint256,uint256,uint256,uint256,uint256,int256,uint256,uint256)) (runs: 256, μ: 2340184, ~: 2342095)
 InterestRateModelTest:testFuzzReferenceRateFloating(uint256,uint256,(uint256,uint256,uint256,uint256,uint256,uint256,uint256)) (runs: 256, μ: 2278308, ~: 2279144)
 InterestRateModelTest:testMinTimeToMaturity() (gas: 2066338)
 InterestRateModelTest:testRevertMaxUtilizationLowerThanWad() (gas: 266877)
 MarketTest:testAccountLiquidityAdjustedDebt() (gas: 499501)
-MarketTest:testAccrueEarningsBeforeLiquidation() (gas: 1252277)
+MarketTest:testAccrueEarningsBeforeLiquidation() (gas: 1253181)
 MarketTest:testAnotherUserRedeemWhenOwnerHasShortfall() (gas: 819136)
-MarketTest:testAnotherUserWithdrawWhenOwnerHasShortfall() (gas: 806873)
+MarketTest:testAnotherUserWithdrawWhenOwnerHasShortfall() (gas: 806806)
 MarketTest:testBorrowAfterFreezing() (gas: 491397)
 MarketTest:testBorrowAtMaturity() (gas: 499605)
 MarketTest:testBorrowAtMaturityAfterFreezing() (gas: 573221)
-MarketTest:testBorrowAtMaturityUpdatesFloatingDebtAndFloatingAssets() (gas: 884694)
+MarketTest:testBorrowAtMaturityUpdatesFloatingDebtAndFloatingAssets() (gas: 884716)
 MarketTest:testBorrowAtMaturityWhenFrozen() (gas: 93718)
 MarketTest:testBorrowAtMaturityWithZeroAssets() (gas: 40403)
 MarketTest:testBorrowDisagreement() (gas: 295476)
-MarketTest:testBorrowFromFreeLunchShouldNotRevertWithFloatingFullUtilization() (gas: 1294353)
-MarketTest:testBorrowWhenFrozen() (gas: 93224)
-MarketTest:testBorrowWithZeroAssets() (gas: 39749)
-MarketTest:testCappedLiquidation() (gas: 1199762)
+MarketTest:testBorrowFromFreeLunchShouldNotRevertWithFloatingFullUtilization() (gas: 1294375)
+MarketTest:testBorrowWhenFrozen() (gas: 93157)
+MarketTest:testBorrowWithZeroAssets() (gas: 39771)
+MarketTest:testCappedLiquidation() (gas: 1199751)
 MarketTest:testChargeTreasuryToEarlyWithdraws() (gas: 1218557)
 MarketTest:testChargeTreasuryToFixedBorrows() (gas: 1579309)
-MarketTest:testClearBadDebtAvoidingFixedBorrowsIfAccumulatorLower() (gas: 2280314)
-MarketTest:testClearBadDebtBeforeMaturity() (gas: 2345465)
+MarketTest:testClearBadDebtAvoidingFixedBorrowsIfAccumulatorLower() (gas: 2280336)
+MarketTest:testClearBadDebtBeforeMaturity() (gas: 2345704)
 MarketTest:testClearBadDebtCalledByAccount() (gas: 35043)
-MarketTest:testClearBadDebtExactlyRepaysFixedBorrowWithAccumulatorAmount() (gas: 2011313)
-MarketTest:testClearBadDebtPartiallyRepaysEachFixedBorrow() (gas: 1958780)
-MarketTest:testClearBadDebtPartiallyRepaysFloatingDebt() (gas: 2298568)
+MarketTest:testClearBadDebtEmptiesUnassignedEarnings() (gas: 2497931)
+MarketTest:testClearBadDebtExactlyRepaysFixedBorrowWithAccumulatorAmount() (gas: 2011033)
+MarketTest:testClearBadDebtPartiallyRepaysEachFixedBorrow() (gas: 1959019)
+MarketTest:testClearBadDebtPartiallyRepaysFloatingDebt() (gas: 2298807)
 MarketTest:testClearBadDebtShouldAccrueAccumulatedEarningsBeforeSpreadingLosses() (gas: 2078219)
 MarketTest:testClearBadDebtWithEmptyAccumulatorShouldNotRevert() (gas: 969910)
-MarketTest:testClearMaturity() (gas: 1684799)
-MarketTest:testCollectTreasuryFreeLunchToEarlyWithdraws() (gas: 1766343)
+MarketTest:testClearMaturity() (gas: 1684770)
+MarketTest:testCollectTreasuryFreeLunchToEarlyWithdraws() (gas: 1766256)
 MarketTest:testCollectTreasuryFreeLunchToEarlyWithdrawsWithZeroFees() (gas: 559359)
 MarketTest:testCollectTreasuryFreeLunchToFixedBorrows() (gas: 1811686)
 MarketTest:testCollectTreasuryFreeLunchToFixedBorrowsWithZeroFees() (gas: 722757)
-MarketTest:testCrossMaturityLiquidation() (gas: 2625085)
+MarketTest:testCrossMaturityLiquidation() (gas: 2625052)
 MarketTest:testDepositAfterFreezing() (gas: 256227)
-MarketTest:testDepositAtMaturity() (gas: 193478)
+MarketTest:testDepositAtMaturity() (gas: 193500)
 MarketTest:testDepositAtMaturityAfterFreezing() (gas: 267471)
-MarketTest:testDepositAtMaturityWhenFrozen() (gas: 93209)
+MarketTest:testDepositAtMaturityWhenFrozen() (gas: 93231)
 MarketTest:testDepositAtMaturityWithZeroAssets() (gas: 39977)
 MarketTest:testDepositDisagreement() (gas: 73904)
 MarketTest:testDepositShouldUpdateFlexibleBorrowVariables() (gas: 716971)
-MarketTest:testDepositToSmartPool() (gas: 181827)
+MarketTest:testDepositToSmartPool() (gas: 181849)
 MarketTest:testDepositWhenFrozen() (gas: 176471)
-MarketTest:testDistributeMultipleAccumulatedEarnings() (gas: 1373903)
-MarketTest:testDistributionOfLossesShouldReduceFromFloatingBackupBorrowedAccordingly() (gas: 6411223)
-MarketTest:testEarlyRepayLiquidationUnassignedEarnings() (gas: 2116887)
-MarketTest:testEarlyRepaymentWithExcessiveAmountOfFees() (gas: 3426445)
+MarketTest:testDistributeMultipleAccumulatedEarnings() (gas: 1373914)
+MarketTest:testDistributionOfLossesShouldReduceFromFloatingBackupBorrowedAccordingly() (gas: 6410451)
+MarketTest:testEarlyRepayLiquidationUnassignedEarnings() (gas: 2116898)
+MarketTest:testEarlyRepaymentWithExcessiveAmountOfFees() (gas: 3426434)
 MarketTest:testEarlyWithdrawFromFreeLunchShouldNotRevertWithFloatingFullUtilization() (gas: 1050103)
 MarketTest:testEmergencyAdminRole() (gas: 322263)
 MarketTest:testEmitFrozen() (gas: 91047)
 MarketTest:testFixedBorrowFailingWhenFlexibleBorrowAccruesDebt() (gas: 1530894)
 MarketTest:testFixedBorrowRateToMaturity() (gas: 562527)
-MarketTest:testFixedOperationsUpdateFloatingDebt() (gas: 865402)
+MarketTest:testFixedOperationsUpdateFloatingDebt() (gas: 865391)
 MarketTest:testFlexibleBorrow() (gas: 423656)
 MarketTest:testFlexibleBorrowAccountingDebt() (gas: 607131)
-MarketTest:testFlexibleBorrowChargingDebtToTreasury() (gas: 751155)
+MarketTest:testFlexibleBorrowChargingDebtToTreasury() (gas: 751177)
 MarketTest:testFlexibleBorrowExceedingReserve() (gas: 878430)
 MarketTest:testFlexibleBorrowExceedingReserveIncludingFixedBorrow() (gas: 1267485)
 MarketTest:testFlexibleBorrowExceedingReserveWithNewDebt() (gas: 1001209)
@@ -208,77 +209,77 @@ MarketTest:testFlexibleBorrowFromAnotherUserSubtractsAllowance() (gas: 469265)
 MarketTest:testFlexibleBorrowFromAnotherUserWithAllowance() (gas: 458681)
 MarketTest:testFlexibleBorrowFromAnotherUserWithoutAllowance() (gas: 252381)
 MarketTest:testFrontRunSmartPoolEarningsDistributionWithBigPenaltyRepayment() (gas: 1373093)
-MarketTest:testFullPause() (gas: 5959954)
+MarketTest:testFullPause() (gas: 5959965)
 MarketTest:testInitiallyUnfrozen() (gas: 15592)
-MarketTest:testInsufficientProtocolLiquidity() (gas: 1940418)
-MarketTest:testLiquidateAndChargeIncentiveForLenders() (gas: 2433524)
-MarketTest:testLiquidateAndDistributeLosses() (gas: 3234183)
-MarketTest:testLiquidateAndSeizeExactAmountWithDustAsCollateral() (gas: 2799752)
+MarketTest:testInsufficientProtocolLiquidity() (gas: 1940330)
+MarketTest:testLiquidateAndChargeIncentiveForLenders() (gas: 2433480)
+MarketTest:testLiquidateAndDistributeLosses() (gas: 3234378)
+MarketTest:testLiquidateAndSeizeExactAmountWithDustAsCollateral() (gas: 2800634)
 MarketTest:testLiquidateAndSeizeFromEmptyCollateral() (gas: 1043463)
-MarketTest:testLiquidateAndSubtractLossesFromAccumulator() (gas: 3907595)
-MarketTest:testLiquidateFlexibleAndFixedBorrowPositionsInSingleCall() (gas: 2638544)
-MarketTest:testLiquidateFlexibleBorrow() (gas: 2160641)
-MarketTest:testLiquidateFlexibleBorrowChargeLendersAssetsToLiquidator() (gas: 1152387)
+MarketTest:testLiquidateAndSubtractLossesFromAccumulator() (gas: 3899583)
+MarketTest:testLiquidateFlexibleAndFixedBorrowPositionsInSingleCall() (gas: 2638533)
+MarketTest:testLiquidateFlexibleBorrow() (gas: 2160663)
+MarketTest:testLiquidateFlexibleBorrowChargeLendersAssetsToLiquidator() (gas: 1152409)
 MarketTest:testLiquidateFlexibleBorrowConsideringDebtOverTime() (gas: 1167683)
-MarketTest:testLiquidateLeavingDustAsCollateral() (gas: 3643173)
+MarketTest:testLiquidateLeavingDustAsCollateral() (gas: 3646055)
 MarketTest:testLiquidateTransferRepayAssetsBeforeSeize() (gas: 1045359)
-MarketTest:testLiquidateUpdateFloatingDebt() (gas: 1903239)
+MarketTest:testLiquidateUpdateFloatingDebt() (gas: 1903228)
 MarketTest:testLiquidateWhenFrozen() (gas: 1232974)
-MarketTest:testLiquidateWithTwoUnitsAsMaxAssets() (gas: 1579206)
+MarketTest:testLiquidateWithTwoUnitsAsMaxAssets() (gas: 1579217)
 MarketTest:testLiquidateWithZeroAsMaxAssets() (gas: 1043412)
 MarketTest:testLiquidationClearingDebtOfAllAccountMarkets() (gas: 3098516)
-MarketTest:testLiquidationResultingInZeroCollateralAndZeroDebt() (gas: 1974455)
+MarketTest:testLiquidationResultingInZeroCollateralAndZeroDebt() (gas: 1975359)
 MarketTest:testMaturityInsufficientProtocolLiquidity() (gas: 1464114)
-MarketTest:testMultipleBorrowsForMultipleAssets() (gas: 2463544803)
+MarketTest:testMultipleBorrowsForMultipleAssets() (gas: 2463575435)
 MarketTest:testMultipleDepositsToSmartPool() (gas: 915573)
-MarketTest:testMultipleFixedBorrowsRepays() (gas: 1348420)
-MarketTest:testMultipleLiquidationSameUser() (gas: 2943514)
-MarketTest:testNotEnteredMarketShouldNotBeSeized() (gas: 8582160)
+MarketTest:testMultipleFixedBorrowsRepays() (gas: 1348413)
+MarketTest:testMultipleLiquidationSameUser() (gas: 2944374)
+MarketTest:testNotEnteredMarketShouldNotBeSeized() (gas: 8589835)
 MarketTest:testOnlyAdminCanFreezeUnfreeze() (gas: 212203)
 MarketTest:testOperationsShouldUpdateFloatingAssetsAverage() (gas: 1445531)
-MarketTest:testOperationsWithBtcWbtcRate() (gas: 8259325)
-MarketTest:testOperationsWithStEthAsset() (gas: 8144210)
+MarketTest:testOperationsWithBtcWbtcRate() (gas: 8267000)
+MarketTest:testOperationsWithStEthAsset() (gas: 8151885)
 MarketTest:testPausable() (gas: 158136)
 MarketTest:testPauserRole() (gas: 78228)
-MarketTest:testPreviewOperationsWithSmartPoolCorrectlyAccountingEarnings() (gas: 1976317)
-MarketTest:testRepayAtMaturity() (gas: 586716)
-MarketTest:testRepayDisagreement() (gas: 594037)
-MarketTest:testRepayFlexibleBorrow() (gas: 1076351)
+MarketTest:testPreviewOperationsWithSmartPoolCorrectlyAccountingEarnings() (gas: 1976306)
+MarketTest:testRepayAtMaturity() (gas: 586727)
+MarketTest:testRepayDisagreement() (gas: 594059)
+MarketTest:testRepayFlexibleBorrow() (gas: 1076284)
 MarketTest:testRepayWhenFrozen() (gas: 535326)
-MarketTest:testRoundingDownAssetsToValidateShortfallWhenTransferring() (gas: 7553932)
-MarketTest:testRoundingDownAssetsToValidateShortfallWhenTransferringFrom() (gas: 7609151)
+MarketTest:testRoundingDownAssetsToValidateShortfallWhenTransferring() (gas: 7561472)
+MarketTest:testRoundingDownAssetsToValidateShortfallWhenTransferringFrom() (gas: 7616758)
 MarketTest:testRoundingDownAssetsWhenTransferingFromAnAccountWithoutShortfall() (gas: 1030183)
 MarketTest:testRoundingDownAssetsWhenTransferingWithAnAccountWithoutShortfall() (gas: 974749)
-MarketTest:testRoundingUpAllowanceWhenBorrowingAtMaturity() (gas: 845691)
+MarketTest:testRoundingUpAllowanceWhenBorrowingAtMaturity() (gas: 845713)
 MarketTest:testRoundingUpAllowanceWhenWithdrawingAtMaturity() (gas: 791732)
-MarketTest:testSetAssetSymbol() (gas: 55013)
+MarketTest:testSetAssetSymbol() (gas: 55035)
 MarketTest:testSetAssetSymbolNotAdmin() (gas: 66288)
 MarketTest:testSetDampSpeedFactorShouldUpdateFloatingAssetsAverage() (gas: 386872)
 MarketTest:testSetEarningsAccumulatorSmoothFactorShouldDistributeEarnings() (gas: 722432)
-MarketTest:testSetInterestRateModelShouldUpdateFloatingDebt() (gas: 2803520)
+MarketTest:testSetInterestRateModelShouldUpdateFloatingDebt() (gas: 2803542)
 MarketTest:testSetInterestRateModelWithAddressZeroShouldNotUpdateFloatingDebt() (gas: 2573368)
 MarketTest:testShareValueNotDecreasingAfterDeposit() (gas: 707864)
 MarketTest:testShareValueNotDecreasingWhenMintingToTreasury() (gas: 763200)
 MarketTest:testSingleFloatingBorrow() (gas: 417427)
 MarketTest:testSingleFloatingRepay() (gas: 484649)
 MarketTest:testSmartPoolEarningsDistribution() (gas: 1095688)
-MarketTest:testSmartPoolSharesDoNotAccountUnassignedEarningsFromMoreThanOneIntervalPastMaturities() (gas: 528549)
+MarketTest:testSmartPoolSharesDoNotAccountUnassignedEarningsFromMoreThanOneIntervalPastMaturities() (gas: 528463)
 MarketTest:testSumDebtPlusEffectsShouldntRoundUpWhenWithdrawing() (gas: 1005585)
 MarketTest:testTotalAssetsProjectingBackupEarningsCorrectly() (gas: 508280)
 MarketTest:testTotalAssetsProjectingFloatingDebtCorrectly() (gas: 713937)
 MarketTest:testUpdateAccumulatedEarningsFactorToZero() (gas: 1473262)
-MarketTest:testUpdateFloatingAssetsAverageWhenDepositingAndBorrowingContinuously() (gas: 344727)
+MarketTest:testUpdateFloatingAssetsAverageWhenDepositingAndBorrowingContinuously() (gas: 344749)
 MarketTest:testUpdateFloatingAssetsAverageWhenDepositingRightBeforeBorrow() (gas: 670454)
 MarketTest:testUpdateFloatingAssetsAverageWhenDepositingRightBeforeEarlyWithdraw() (gas: 630543)
 MarketTest:testUpdateFloatingAssetsAverageWhenDepositingSomeSecondsBeforeBorrow() (gas: 901042)
-MarketTest:testUpdateFloatingAssetsAverageWhenWithdrawingRightBeforeBorrow() (gas: 683496)
-MarketTest:testUpdateFloatingAssetsAverageWhenWithdrawingRightBeforeEarlyWithdraw() (gas: 643673)
+MarketTest:testUpdateFloatingAssetsAverageWhenWithdrawingRightBeforeBorrow() (gas: 683518)
+MarketTest:testUpdateFloatingAssetsAverageWhenWithdrawingRightBeforeEarlyWithdraw() (gas: 643695)
 MarketTest:testUpdateFloatingAssetsAverageWhenWithdrawingSomeSecondsBeforeBorrow() (gas: 373112)
 MarketTest:testUpdateFloatingAssetsAverageWithDampSpeedDown() (gas: 358048)
-MarketTest:testUpdateFloatingAssetsAverageWithDampSpeedUp() (gas: 199785)
-MarketTest:testUpdateFloatingDebtBeforeSettingTreasury() (gas: 106395)
-MarketTest:testWithdrawAtMaturity() (gas: 304303)
-MarketTest:testWithdrawFromSmartPool() (gas: 279199)
+MarketTest:testUpdateFloatingAssetsAverageWithDampSpeedUp() (gas: 199697)
+MarketTest:testUpdateFloatingDebtBeforeSettingTreasury() (gas: 106417)
+MarketTest:testWithdrawAtMaturity() (gas: 304325)
+MarketTest:testWithdrawFromSmartPool() (gas: 279221)
 MarketTest:testWithdrawShouldUpdateFlexibleBorrowVariables() (gas: 863981)
 MarketTest:testWithdrawWhenFrozen() (gas: 325961)
 PauserTest:testPauseProtocolFromRando() (gas: 32843)
@@ -300,24 +301,24 @@ PreviewerTest:testAccountsReturningUtilizationForDifferentMaturities() (gas: 418
 PreviewerTest:testAccountsWithAccountOnlyDeposit() (gas: 862391)
 PreviewerTest:testAccountsWithAccountThatHasBalances() (gas: 2265104)
 PreviewerTest:testAccountsWithEmptyAccount() (gas: 690558)
-PreviewerTest:testAccountsWithIntermediateOperationsReturningAccurateAmounts() (gas: 17638834)
+PreviewerTest:testAccountsWithIntermediateOperationsReturningAccurateAmounts() (gas: 17646503)
 PreviewerTest:testActualTimeBeforeStartDistributionRewards() (gas: 7836506)
 PreviewerTest:testEmptyExactly() (gas: 5725652)
 PreviewerTest:testExactlyReturningInterestRateModelData() (gas: 688149)
-PreviewerTest:testFixedAvailableLiquidityProjectingNewFloatingDebt() (gas: 13322888)
-PreviewerTest:testFixedPoolsA() (gas: 19344633)
+PreviewerTest:testFixedAvailableLiquidityProjectingNewFloatingDebt() (gas: 13330557)
+PreviewerTest:testFixedPoolsA() (gas: 19352291)
 PreviewerTest:testFixedPoolsChangingMaturityInTime() (gas: 1627253)
-PreviewerTest:testFixedPoolsRatesAndUtilizations() (gas: 14836376)
-PreviewerTest:testFixedPoolsWithFloatingAssetsAverage() (gas: 15659561)
-PreviewerTest:testFlexibleAvailableLiquidity() (gas: 17268690)
+PreviewerTest:testFixedPoolsRatesAndUtilizations() (gas: 14844045)
+PreviewerTest:testFixedPoolsWithFloatingAssetsAverage() (gas: 15667219)
+PreviewerTest:testFlexibleAvailableLiquidity() (gas: 17276348)
 PreviewerTest:testFlexibleBorrowSharesAndAssets() (gas: 4401038)
-PreviewerTest:testFloatingAvailableLiquidityProjectingNewFloatingDebt() (gas: 12575548)
+PreviewerTest:testFloatingAvailableLiquidityProjectingNewFloatingDebt() (gas: 12583217)
 PreviewerTest:testFloatingRateAndUtilization() (gas: 1128246)
 PreviewerTest:testJustUpdatedRewardRatesShouldStillReturnRate() (gas: 7255302)
 PreviewerTest:testMaxBorrowAssetsCapacity() (gas: 2482200)
-PreviewerTest:testMaxBorrowAssetsCapacityForAccountWithShortfall() (gas: 11013073)
-PreviewerTest:testMaxBorrowAssetsCapacityPerMarket() (gas: 13225692)
-PreviewerTest:testOraclePriceReturningAccurateValues() (gas: 10154913)
+PreviewerTest:testMaxBorrowAssetsCapacityForAccountWithShortfall() (gas: 11020748)
+PreviewerTest:testMaxBorrowAssetsCapacityPerMarket() (gas: 13233361)
+PreviewerTest:testOraclePriceReturningAccurateValues() (gas: 10162588)
 PreviewerTest:testPreviewBorrowAtAllMaturitiesReturningAccurateAmount() (gas: 4242626)
 PreviewerTest:testPreviewBorrowAtMaturityReturningAccurateAmount() (gas: 623428)
 PreviewerTest:testPreviewBorrowAtMaturityReturningAccurateAmountWithIntermediateOperations() (gas: 1954610)
@@ -338,9 +339,9 @@ PreviewerTest:testPreviewDepositAtMaturityWithMaturedMaturity() (gas: 12565)
 PreviewerTest:testPreviewDepositAtMaturityWithOneUnit() (gas: 589435)
 PreviewerTest:testPreviewDepositAtMaturityWithSameTimestamp() (gas: 48970)
 PreviewerTest:testPreviewDepositAtMaturityWithZeroAmount() (gas: 589457)
-PreviewerTest:testPreviewRepayAtMaturityLastAccrualIsMaturity() (gas: 1427968)
-PreviewerTest:testPreviewRepayAtMaturityReturningAccurateAmount() (gas: 1249754)
-PreviewerTest:testPreviewRepayAtMaturityReturningAccurateAmountWithIntermediateOperations() (gas: 1553636)
+PreviewerTest:testPreviewRepayAtMaturityLastAccrualIsMaturity() (gas: 1427957)
+PreviewerTest:testPreviewRepayAtMaturityReturningAccurateAmount() (gas: 1249743)
+PreviewerTest:testPreviewRepayAtMaturityReturningAccurateAmountWithIntermediateOperations() (gas: 1553603)
 PreviewerTest:testPreviewRepayAtMaturityWithEmptyMaturity() (gas: 35313)
 PreviewerTest:testPreviewRepayAtMaturityWithEmptyMaturityAndZeroAmount() (gas: 35355)
 PreviewerTest:testPreviewRepayAtMaturityWithInvalidMaturity() (gas: 35355)
@@ -363,8 +364,8 @@ PreviewerTest:testReserveFactor() (gas: 707280)
 PreviewerTest:testReturnRewardAssetUsdPrice() (gas: 6780317)
 PreviewerTest:testRewardsRateAfterDistributionEnd() (gas: 7561623)
 PreviewerTest:testRewardsRateOnlyWithFixedBorrows() (gas: 6868753)
-PreviewerTest:testRewardsRateWithDifferentRewardLengths() (gas: 19345407)
-PreviewerTest:testRewardsRateWithMarketWithDifferentDecimals() (gas: 18476882)
+PreviewerTest:testRewardsRateWithDifferentRewardLengths() (gas: 19353076)
+PreviewerTest:testRewardsRateWithMarketWithDifferentDecimals() (gas: 18484551)
 PreviewerTest:testRewardsRateX() (gas: 8208254)
 PriceFeedDoubleTest:testPriceFeedDoubleReturningAccurateDecimals() (gas: 605925)
 PriceFeedDoubleTest:testPriceFeedDoubleReturningPrice() (gas: 53190)
@@ -388,9 +389,9 @@ RatePreviewerTest:testSnapshot() (gas: 1029231)
 RatePreviewerTest:testSnapshotWithSignificantElapsedTime() (gas: 1063339)
 RewardsControllerTest:testAccountKeeperClaimOnBehalfOf() (gas: 1294500)
 RewardsControllerTest:testAccrueRewardsForWholeDistributionPeriod() (gas: 1246256)
-RewardsControllerTest:testAccrueRewardsWithBadDebtClearingOfFixedBorrow() (gas: 3340292)
+RewardsControllerTest:testAccrueRewardsWithBadDebtClearingOfFixedBorrow() (gas: 3340281)
 RewardsControllerTest:testAccrueRewardsWithRepayOfBorrowBalance() (gas: 1603825)
-RewardsControllerTest:testAccrueRewardsWithRepayOfFixedBorrowBalance() (gas: 1793176)
+RewardsControllerTest:testAccrueRewardsWithRepayOfFixedBorrowBalance() (gas: 1793165)
 RewardsControllerTest:testAccrueRewardsWithSeizeOfAllDepositShares() (gas: 1992324)
 RewardsControllerTest:testAfterDistributionPeriodEnd() (gas: 1819278)
 RewardsControllerTest:testAllClaimableUSDCWithAnotherAccountInPool() (gas: 2274712)
@@ -426,7 +427,7 @@ RewardsControllerTest:testNotKeeperClaimOnBehalfOf() (gas: 185650)
 RewardsControllerTest:testOperationAfterDistributionEnded() (gas: 723254)
 RewardsControllerTest:testOperationsBeforeDistributionStart() (gas: 1675913)
 RewardsControllerTest:testPermitClaim() (gas: 1276089)
-RewardsControllerTest:testSetDistributionConfigWithDifferentDecimals() (gas: 11470350)
+RewardsControllerTest:testSetDistributionConfigWithDifferentDecimals() (gas: 11478025)
 RewardsControllerTest:testSetDistributionOperationShouldUpdateIndex() (gas: 136066)
 RewardsControllerTest:testSetDistributionWithOnGoingMarketOperations() (gas: 1202681)
 RewardsControllerTest:testSetHigherTotalDistribution() (gas: 1833726)
diff --git a/contracts/Market.sol b/contracts/Market.sol
index 71f15b3f..b17d2ca5 100644
--- a/contracts/Market.sol
+++ b/contracts/Market.sol
@@ -643,16 +643,22 @@ contract Market is Initializable, AccessControlUpgradeable, PausableUpgradeable,
           if (address(memRewardsController) != address(0)) memRewardsController.handleBorrow(borrower);
           accumulator -= badDebt;
           totalBadDebt += badDebt;
-          floatingBackupBorrowed -= fixedPools[maturity].repay(position.principal);
+          uint256 backupDebtReduction = fixedPools[maturity].repay(position.principal);
+          floatingBackupBorrowed -= backupDebtReduction;
+
+          if (backupDebtReduction != 0) {
+            uint256 yield = fixedPools[maturity].unassignedEarnings.mulDivDown(
+              Math.min(position.principal, backupDebtReduction),
+              backupDebtReduction
+            );
+            fixedPools[maturity].unassignedEarnings -= yield;
+            earningsAccumulator += yield;
+          }
+
           delete fixedBorrowPositions[maturity][borrower];
           account.fixedBorrows = account.fixedBorrows.clearMaturity(maturity);
 
           emit RepayAtMaturity(maturity, msg.sender, borrower, badDebt, badDebt);
-
-          if (fixedPools[maturity].borrowed == position.principal) {
-            earningsAccumulator += fixedPools[maturity].unassignedEarnings;
-            fixedPools[maturity].unassignedEarnings = 0;
-          }
         }
       }
       packedMaturities >>= 1;
diff --git a/test/Market.t.sol b/test/Market.t.sol
index 0083438a..a3f4fce8 100644
--- a/test/Market.t.sol
+++ b/test/Market.t.sol
@@ -1126,6 +1126,51 @@ contract MarketTest is Test {
     assertEq(market.floatingDebt(), floatingDebtBefore);
   }
 
+  function testClearBadDebtEmptiesUnassignedEarnings() external {
+    uint256 maxVal = type(uint256).max;
+
+    marketWETH.deposit(100000 ether, address(this));
+    marketWETH.borrowAtMaturity(4 weeks, 10000e18, maxVal, address(this), address(this));
+    marketWETH.repayAtMaturity(4 weeks, maxVal, maxVal, address(this));
+
+    vm.startPrank(BOB);
+    market.deposit(100 ether, BOB);
+    auditor.enterMarket(market);
+    marketWETH.borrowAtMaturity(4 weeks, 60e18, maxVal, BOB, BOB);
+    vm.stopPrank();
+
+    vm.startPrank(ALICE);
+    weth.mint(ALICE, 1_000_000 ether);
+    weth.approve(address(marketWETH), type(uint256).max);
+    marketWETH.deposit(10, ALICE);
+    marketWETH.borrowAtMaturity(4 weeks, 1, maxVal, ALICE, ALICE);
+    vm.stopPrank();
+
+    daiPriceFeed.setPrice(0.6e18);
+
+    vm.startPrank(ALICE);
+    marketWETH.liquidate(BOB, 100_000 ether, market);
+    vm.stopPrank();
+
+    (, , uint256 unassignedEarningsAfter, ) = marketWETH.fixedPools(4 weeks);
+    assertEq(unassignedEarningsAfter, 0);
+
+    address account = makeAddr("account");
+    vm.startPrank(account);
+    deal(address(weth), account, 10);
+    weth.approve(address(marketWETH), 10);
+    marketWETH.depositAtMaturity(4 weeks, 10, 0, account);
+    vm.stopPrank();
+
+    (, , unassignedEarningsAfter, ) = marketWETH.fixedPools(4 weeks);
+    assertEq(unassignedEarningsAfter, 0);
+
+    // account should not get unassigned earnings
+    (uint256 principal, uint256 fee) = marketWETH.fixedDepositPositions(4 weeks, account);
+    assertEq(principal, 10);
+    assertEq(fee, 0);
+  }
+
   function testClearBadDebtCalledByAccount() external {
     vm.expectRevert(NotAuditor.selector);
     market.clearBadDebt(address(this));
@@ -1677,7 +1722,7 @@ contract MarketTest is Test {
     uint256 lendersIncentive = 1181818181818181800;
     uint256 distributedEarnings = 680440721299864513;
     uint256 badDebt = 981818181818181818100 + 1100000000000000000000 + 1100000000000000000000 + 1100000000000000000000;
-    uint256 untrackedUnassignedEarnings = 300000000000000000000;
+    uint256 untrackedUnassignedEarnings = 300000000000000000000 + 29752070215138961802;
     uint256 earlyRepayEarnings = 3069658128703695345;
     uint256 accumulatedEarnings = (earningsAccumulatorBefore + lendersIncentive).mulDivDown(
       block.timestamp - market.lastAccumulatorAccrual(),