# `ManagedLeveragedVault::increaseLeverage()` will never work in Recovery mode Low/Info · Sherlock · CDP stablecoin · 25th April, 2025 Finding L-4 of the Beraborrow Managed Dens security review. - Protocol: https://www.beraborrow.com/ - Report: /reports/beraborrow-i - Source: https://1570492309-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FffzDCMBDa391vIMqruBP%2Fuploads%2FUKDtjc6Dkn6P6i35j5H1%2FManaged%20Leverage%20Vaults%20v0%20private%20audit%20Sherlock.pdf?alt=media&token=c7304efa-8040-4ed0-9a98-dc949af28a85 --- ## Summary Recovery mode doesn't allow Dens to decrease their ICR. Hence, `ManagedLeveragedVault::increaseLeverage()` will revert when the protocol is in Recovery mode. ## Vulnerability Detail `ManagedLeveragedVault::increaseLeverage()` withdraws debt: ```solidity b$.borrowerOperations.withdrawDebt( b$.denManager, address(this), _maxFeePercentage, _debtAmount, _upperHint, _lowerHint ); ``` But this is not possible in Recovery mode, as it requires that the new ICR is bigger than the old one. ## Impact DoSed increasing leverage. ## Code Snippet https://github.com/sherlock-audit/2025-04-beraborrow-vault-update/pull/1/files#diff-2d972f52027e0ba1065b2de2b424416244bfef9e2a79d2604e1687867f72c91eR431-R438 ## Tool Used Manual Review ## Recommendation Nothing can be really done but it's something to keep in mind. --- Related findings: - [`PreDepositVault::sweep()` uses `address.transfer` which does not work for certain wallets](https://0xsimao.com/findings/gaib-deposit-sweep-transfer-wallets): GAIB Pre-Vaults - [`PreDepositVault` will not work for USDT](https://0xsimao.com/findings/gaib-pre-deposit-work-usdt): GAIB Pre-Vaults - [Destination Vault rewards are not added to idleIncrease when info.totalAssetsPulled > info.totalAssetsToPull](https://0xsimao.com/findings/tokemak-rewards-info-pulled-pull): Tokemak