diff -r 2c1fc7b29c9c -r 7e3913e70846 src/HOL/Tools/ATP/atp_translate.ML
--- a/src/HOL/Tools/ATP/atp_translate.ML	Fri Aug 26 00:19:25 2011 +0200
+++ b/src/HOL/Tools/ATP/atp_translate.ML	Fri Aug 26 01:14:49 2011 +0200
@@ -1889,8 +1889,9 @@
     val level = level_of_type_enc type_enc
     val should_encode = should_encode_type ctxt mono level
     fun add_type T = not (should_encode T) ? insert_type ctxt I T
-    fun add_term (tm as IApp (_, tm2)) = add_type (ityp_of tm) #> add_term tm2
-      | add_term tm = add_type (ityp_of tm)
+    fun add_args (IApp (tm1, tm2)) = add_args tm1 #> add_term tm2
+      | add_args _ = I
+    and add_term tm = add_type (ityp_of tm) #> add_args tm
   in formula_fold NONE (K add_term) end
 fun add_fact_monotonic_types ctxt mono type_enc =
   add_iformula_monotonic_types ctxt mono type_enc |> fact_lift