From 0825e0d6ffcd3ab7d5f4f65eb1bcd4b06806a8db Mon Sep 17 00:00:00 2001
From: ckoopmann <c.k.e.koopmann@gmail.com>
Date: Mon, 11 Nov 2024 12:31:19 +0100
Subject: [PATCH] fix: Apply unitilizedLeveragePercentage to
 maxBorrowCollateral only when levering up

---
 contracts/adapters/MorphoLeverageStrategyExtension.sol | 5 +++--
 1 file changed, 3 insertions(+), 2 deletions(-)

diff --git a/contracts/adapters/MorphoLeverageStrategyExtension.sol b/contracts/adapters/MorphoLeverageStrategyExtension.sol
index 32bbf35c..4e5392a0 100644
--- a/contracts/adapters/MorphoLeverageStrategyExtension.sol
+++ b/contracts/adapters/MorphoLeverageStrategyExtension.sol
@@ -1123,10 +1123,11 @@ contract MorphoLeverageStrategyExtension is BaseExtension {
         // Note NetBorrow Limit is already denominated in borrow asset
         uint256 netBorrowLimit = _actionInfo.collateralBalance
             .mul(_actionInfo.collateralPrice).div(MORPHO_ORACLE_PRICE_SCALE)
-            .preciseMul(_actionInfo.lltv)
-            .preciseMul(PreciseUnitMath.preciseUnit().sub(execution.unutilizedLeveragePercentage));
+            .preciseMul(_actionInfo.lltv);
+
         if (_isLever) {
             return netBorrowLimit
+                .preciseMul(PreciseUnitMath.preciseUnit().sub(execution.unutilizedLeveragePercentage))
                 .sub(_actionInfo.borrowBalance)
                 .mul(MORPHO_ORACLE_PRICE_SCALE).div(_actionInfo.collateralPrice);
         } else {