diff --git a/src/Strategy.sol b/src/Strategy.sol
index 057eb274..7bced9fe 100644
--- a/src/Strategy.sol
+++ b/src/Strategy.sol
@@ -752,11 +752,15 @@ contract Strategy is BaseStrategy, Pausable, ReentrancyGuard {
         require(termAuction.termRepoId() == ITermRepoToken(repoToken).termRepoId(), "repoToken does not match term repo ID");
 
         // Validate purchase token, min collateral ratio and insert the repoToken if necessary
-        repoTokenListData.validateRepoToken(
+        (bool isValid, ) = repoTokenListData.validateRepoToken(
             ITermRepoToken(repoToken),
             address(asset)
         );
 
+        if (!isValid) {
+            revert RepoTokenList.InvalidRepoToken(repoToken);
+        }
+
         // Prepare and submit the offer
         ITermAuctionOfferLocker offerLocker = ITermAuctionOfferLocker(
             termAuction.termAuctionOfferLocker()
diff --git a/src/test/TestUSDCOffers.t.sol b/src/test/TestUSDCOffers.t.sol
index 282a0355..c4ca22cf 100644
--- a/src/test/TestUSDCOffers.t.sol
+++ b/src/test/TestUSDCOffers.t.sol
@@ -7,6 +7,7 @@ import {MockTermAuction} from "./mocks/MockTermAuction.sol";
 import {MockUSDC} from "./mocks/MockUSDC.sol";
 import {Setup, ERC20, IStrategyInterface} from "./utils/Setup.sol";
 import {Strategy} from "../Strategy.sol";
+import {RepoTokenList} from "../RepoTokenList.sol";
 
 contract TestUSDCSubmitOffer is Setup {
     uint256 internal constant TEST_REPO_TOKEN_RATE = 0.05e18;
@@ -73,6 +74,16 @@ contract TestUSDCSubmitOffer is Setup {
         assertEq(termStrategy.totalAssetValue(), termStrategy.totalLiquidBalance() + 1e6);
     }
 
+    function testSubmitOfferFailsIfMinCollatRatioisZero() public {       
+        vm.startPrank(management);
+        termStrategy.setCollateralTokenParams(address(mockCollateral), 0);
+
+        vm.expectRevert(abi.encodeWithSelector(RepoTokenList.InvalidRepoToken.selector, address(repoToken1Week)));
+        termStrategy.submitAuctionOffer(
+            repoToken1WeekAuction, address(repoToken1Week), bytes32("offer id hash 1"), bytes32("test price"), 1e6
+        ); 
+    }
+
     function testEditOffer() public {
         bytes32 idHash1 = bytes32("offer id hash 1");
         bytes32 offerId1 = _submitOffer(idHash1, 1e6);