diff --git a/contracts/red-bank/tests/tests/test_admin.rs b/contracts/red-bank/tests/tests/test_admin.rs
index 2fb396789..37033cedb 100644
--- a/contracts/red-bank/tests/tests/test_admin.rs
+++ b/contracts/red-bank/tests/tests/test_admin.rs
@@ -137,7 +137,7 @@ fn init_asset() {
         optimal_utilization_rate: Decimal::one(),
         base: Decimal::percent(5),
         slope_1: Decimal::zero(),
-        slope_2: Decimal::zero(),
+        slope_2: Decimal::one(),
     };
 
     let params = InitOrUpdateAssetParams {
@@ -269,6 +269,33 @@ fn init_asset() {
         );
     }
 
+    // init asset where slope_1 >= slope_2
+    {
+        let invalid_asset_params = InitOrUpdateAssetParams {
+            interest_rate_model: Some(InterestRateModel {
+                slope_1: Decimal::percent(10),
+                slope_2: Decimal::percent(10),
+                ..ir_model
+            }),
+            ..params
+        };
+        let msg = ExecuteMsg::InitAsset {
+            denom: "someasset".to_string(),
+            params: invalid_asset_params,
+        };
+        let info = mock_info("owner", &[]);
+        let error_res = execute(deps.as_mut(), env.clone(), info, msg).unwrap_err();
+        assert_eq!(
+            error_res,
+            ValidationError::InvalidParam {
+                param_name: "slope_1".to_string(),
+                invalid_value: "0.1".to_string(),
+                predicate: "< 0.1".to_string()
+            }
+            .into()
+        );
+    }
+
     // owner is authorized
     {
         let msg = ExecuteMsg::InitAsset {
@@ -322,7 +349,7 @@ fn update_asset() {
         optimal_utilization_rate: Decimal::one(),
         base: Decimal::percent(5),
         slope_1: Decimal::zero(),
-        slope_2: Decimal::zero(),
+        slope_2: Decimal::one(),
     };
 
     let params = InitOrUpdateAssetParams {
@@ -459,7 +486,7 @@ fn update_asset_with_new_interest_rate_model_params() {
         optimal_utilization_rate: Decimal::one(),
         base: Decimal::percent(5),
         slope_1: Decimal::zero(),
-        slope_2: Decimal::zero(),
+        slope_2: Decimal::one(),
     };
 
     let params = InitOrUpdateAssetParams {
diff --git a/packages/types/src/red_bank/interest_rate_model.rs b/packages/types/src/red_bank/interest_rate_model.rs
index d94e1c7e2..26f844eaa 100644
--- a/packages/types/src/red_bank/interest_rate_model.rs
+++ b/packages/types/src/red_bank/interest_rate_model.rs
@@ -11,15 +11,24 @@ pub struct InterestRateModel {
     pub optimal_utilization_rate: Decimal,
     /// Base rate
     pub base: Decimal,
-    /// Slope parameter for interest rate model function when utilization_rate < optimal_utilization_rate
+    /// Slope parameter for interest rate model function when utilization_rate <= optimal_utilization_rate
     pub slope_1: Decimal,
-    /// Slope parameter for interest rate model function when utilization_rate >= optimal_utilization_rate
+    /// Slope parameter for interest rate model function when utilization_rate > optimal_utilization_rate
     pub slope_2: Decimal,
 }
 
 impl InterestRateModel {
     pub fn validate(&self) -> Result<(), ValidationError> {
         decimal_param_le_one(self.optimal_utilization_rate, "optimal_utilization_rate")?;
+
+        if self.slope_1 >= self.slope_2 {
+            return Err(ValidationError::InvalidParam {
+                param_name: "slope_1".to_string(),
+                invalid_value: self.slope_1.to_string(),
+                predicate: format!("< {}", self.slope_2),
+            });
+        }
+
         Ok(())
     }
 
diff --git a/schemas/mars-red-bank/mars-red-bank.json b/schemas/mars-red-bank/mars-red-bank.json
index 5f8b24d6c..569158af9 100644
--- a/schemas/mars-red-bank/mars-red-bank.json
+++ b/schemas/mars-red-bank/mars-red-bank.json
@@ -454,7 +454,7 @@
             ]
           },
           "slope_1": {
-            "description": "Slope parameter for interest rate model function when utilization_rate < optimal_utilization_rate",
+            "description": "Slope parameter for interest rate model function when utilization_rate <= optimal_utilization_rate",
             "allOf": [
               {
                 "$ref": "#/definitions/Decimal"
@@ -462,7 +462,7 @@
             ]
           },
           "slope_2": {
-            "description": "Slope parameter for interest rate model function when utilization_rate >= optimal_utilization_rate",
+            "description": "Slope parameter for interest rate model function when utilization_rate > optimal_utilization_rate",
             "allOf": [
               {
                 "$ref": "#/definitions/Decimal"
@@ -1146,7 +1146,7 @@
               ]
             },
             "slope_1": {
-              "description": "Slope parameter for interest rate model function when utilization_rate < optimal_utilization_rate",
+              "description": "Slope parameter for interest rate model function when utilization_rate <= optimal_utilization_rate",
               "allOf": [
                 {
                   "$ref": "#/definitions/Decimal"
@@ -1154,7 +1154,7 @@
               ]
             },
             "slope_2": {
-              "description": "Slope parameter for interest rate model function when utilization_rate >= optimal_utilization_rate",
+              "description": "Slope parameter for interest rate model function when utilization_rate > optimal_utilization_rate",
               "allOf": [
                 {
                   "$ref": "#/definitions/Decimal"
@@ -1208,7 +1208,7 @@
               ]
             },
             "slope_1": {
-              "description": "Slope parameter for interest rate model function when utilization_rate < optimal_utilization_rate",
+              "description": "Slope parameter for interest rate model function when utilization_rate <= optimal_utilization_rate",
               "allOf": [
                 {
                   "$ref": "#/definitions/Decimal"
@@ -1216,7 +1216,7 @@
               ]
             },
             "slope_2": {
-              "description": "Slope parameter for interest rate model function when utilization_rate >= optimal_utilization_rate",
+              "description": "Slope parameter for interest rate model function when utilization_rate > optimal_utilization_rate",
               "allOf": [
                 {
                   "$ref": "#/definitions/Decimal"