diff --git a/x/cdp/keeper/cdp.go b/x/cdp/keeper/cdp.go
index 0b41943f..0675154d 100644
--- a/x/cdp/keeper/cdp.go
+++ b/x/cdp/keeper/cdp.go
@@ -412,6 +412,9 @@ func (k Keeper) CalculateCollateralToDebtRatio(ctx sdk.Context, collateral sdk.C
 
 // CalculateCollateralizationRatio returns the collateralization ratio of the input collateral to the input debt plus fees
 func (k Keeper) CalculateCollateralizationRatio(ctx sdk.Context, collateral sdk.Coins, principal sdk.Coins, fees sdk.Coins) (sdk.Dec, sdk.Error) {
+	if collateral.IsZero() {
+		return sdk.ZeroDec(), nil
+	}
 	marketID := k.getMarketID(ctx, collateral[0].Denom)
 	price, err := k.pricefeedKeeper.GetCurrentPrice(ctx, marketID)
 	if err != nil {
diff --git a/x/cdp/keeper/deposit_test.go b/x/cdp/keeper/deposit_test.go
index fab85c8a..d9a5e6b0 100644
--- a/x/cdp/keeper/deposit_test.go
+++ b/x/cdp/keeper/deposit_test.go
@@ -93,7 +93,9 @@ func (suite *DepositTestSuite) TestDepositCollateral() {
 }
 
 func (suite *DepositTestSuite) TestWithdrawCollateral() {
-	err := suite.keeper.WithdrawCollateral(suite.ctx, suite.addrs[0], suite.addrs[0], cs(c("xrp", 321000000)))
+	err := suite.keeper.WithdrawCollateral(suite.ctx, suite.addrs[0], suite.addrs[0], cs(c("xrp", 400000000)))
+	suite.Equal(types.CodeInvalidCollateralRatio, err.Result().Code)
+	err = suite.keeper.WithdrawCollateral(suite.ctx, suite.addrs[0], suite.addrs[0], cs(c("xrp", 321000000)))
 	suite.Equal(types.CodeInvalidCollateralRatio, err.Result().Code)
 	err = suite.keeper.WithdrawCollateral(suite.ctx, suite.addrs[1], suite.addrs[0], cs(c("xrp", 10000000)))
 	suite.Equal(types.CodeCdpNotFound, err.Result().Code)