[cc65] Memory allocation question

I think I already know the answer to this one, but will ask to be sure.
Upon a program termination, all malloc()'ed memory is free()'ed back to the
system?  Im writing for the Commodore 128, and my assumption of course, is
that when a program terminates, the system (memory pointers and such) are
all back to a normal power-on state.  To that regard, is there anything that
would not be back in "power-on" state upon program termination due soley to
the compiler? (ie modified zero page values, etc,)

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