Min in Deterministic model

Dear Professor Pfeifer,
I have a model that works perfectly. in line 76, I have a min function which controls the leverage ratio. when it 2.6 the code works (because the simulation of phi is always below 2.6), but when I reduce that to a lower value such as 2.5 the simulation doesn’t work. I was wondering if there is way to deal with this problem.
Thank you for your time. here is the modelmodel.zip (5.3 KB)
Kind regards,

This one is tricky. Occasionally binding constraints are hard to solve with standard approaches. Can you set it up as a MCP problem?

Dear professor Pfeiffer,
I was wondering if you have any advice on this issue?
Kind regards,

Unfortunately, not really. This is a hard problem. You could try starting from the solution without the constraint.

Thank you for you reply. Actually the code works well without the constraint. The problem appears when the constraint is added.

What I am saying is: solve the model without the constraint and then use that solution as the starting values for the mcp-problem. See e.g.