diff --git a/programs/castle-lending-aggregator/src/instructions/mod.rs b/programs/castle-lending-aggregator/src/instructions/mod.rs
index 14ae0f2..c5b2d75 100644
--- a/programs/castle-lending-aggregator/src/instructions/mod.rs
+++ b/programs/castle-lending-aggregator/src/instructions/mod.rs
@@ -3,6 +3,7 @@ pub mod init;
 pub mod rebalance;
 pub mod reconcile;
 pub mod refresh;
+pub mod update_deposit_cap;
 pub mod withdraw;
 
 pub use deposit::*;
@@ -10,4 +11,5 @@ pub use init::*;
 pub use rebalance::*;
 pub use reconcile::*;
 pub use refresh::*;
+pub use update_deposit_cap::*;
 pub use withdraw::*;
diff --git a/programs/castle-lending-aggregator/src/instructions/update_deposit_cap.rs b/programs/castle-lending-aggregator/src/instructions/update_deposit_cap.rs
new file mode 100644
index 0000000..2e0d703
--- /dev/null
+++ b/programs/castle-lending-aggregator/src/instructions/update_deposit_cap.rs
@@ -0,0 +1,23 @@
+use anchor_lang::prelude::*;
+
+use crate::state::Vault;
+use std::convert::Into;
+
+#[derive(Accounts)]
+pub struct UpdateDepositCap<'info> {
+    #[account(
+        mut,
+        has_one = owner,
+    )]
+    pub vault: Box<Account<'info, Vault>>,
+
+    pub owner: Signer<'info>,
+}
+
+pub fn handler(ctx: Context<UpdateDepositCap>, deposit_cap_new_value: u64) -> ProgramResult {
+    #[cfg(feature = "debug")]
+    msg!("New deposit cap value: {}", deposit_cap_new_value);
+
+    ctx.accounts.vault.pool_size_limit = deposit_cap_new_value;
+    Ok(())
+}
diff --git a/programs/castle-lending-aggregator/src/lib.rs b/programs/castle-lending-aggregator/src/lib.rs
index 42901f0..991a938 100644
--- a/programs/castle-lending-aggregator/src/lib.rs
+++ b/programs/castle-lending-aggregator/src/lib.rs
@@ -27,11 +27,18 @@ pub mod castle_lending_aggregator {
         _bumps: InitBumpSeeds,
         strategy_type: StrategyType,
         fees: FeeArgs,
-        pool_size_limit: u64
+        pool_size_limit: u64,
     ) -> ProgramResult {
         instructions::init::handler(ctx, _bumps, strategy_type, fees, pool_size_limit)
     }
 
+    pub fn update_deposit_cap(
+        ctx: Context<UpdateDepositCap>,
+        deposit_cap_new_value: u64,
+    ) -> ProgramResult {
+        instructions::update_deposit_cap::handler(ctx, deposit_cap_new_value)
+    }
+
     pub fn deposit(ctx: Context<Deposit>, reserve_token_amount: u64) -> ProgramResult {
         instructions::deposit::handler(ctx, reserve_token_amount)
     }
diff --git a/sdk/src/castle_lending_aggregator.ts b/sdk/src/castle_lending_aggregator.ts
index 6933e39..4b251f9 100644
--- a/sdk/src/castle_lending_aggregator.ts
+++ b/sdk/src/castle_lending_aggregator.ts
@@ -146,6 +146,27 @@ export type CastleLendingAggregator = {
                 }
             ];
         },
+        {
+            name: "updateDepositCap";
+            accounts: [
+                {
+                    name: "vault";
+                    isMut: true;
+                    isSigner: false;
+                },
+                {
+                    name: "owner";
+                    isMut: false;
+                    isSigner: true;
+                }
+            ];
+            args: [
+                {
+                    name: "depositCapNewValue";
+                    type: "u64";
+                }
+            ];
+        },
         {
             name: "deposit";
             accounts: [
@@ -1117,6 +1138,27 @@ export const IDL: CastleLendingAggregator = {
                 },
             ],
         },
+        {
+            name: "updateDepositCap",
+            accounts: [
+                {
+                    name: "vault",
+                    isMut: true,
+                    isSigner: false,
+                },
+                {
+                    name: "owner",
+                    isMut: false,
+                    isSigner: true,
+                },
+            ],
+            args: [
+                {
+                    name: "depositCapNewValue",
+                    type: "u64",
+                },
+            ],
+        },
         {
             name: "deposit",
             accounts: [
diff --git a/sdk/src/client.ts b/sdk/src/client.ts
index b8862ba..90278cf 100644
--- a/sdk/src/client.ts
+++ b/sdk/src/client.ts
@@ -70,7 +70,7 @@ export class VaultClient {
         return new VaultClient(program, vaultId, vaultState, solend, port, jet);
     }
 
-    private async reload() {
+    async reload() {
         this.vaultState = await this.program.account.vault.fetch(this.vaultId);
         // TODO reload underlying asset data also?
     }
@@ -292,6 +292,29 @@ export class VaultClient {
         };
     }
 
+    /**
+     * @param new_value
+     * @returns
+     */
+    async updateDepositCap(
+        owner: Keypair,
+        new_value: number
+    ): Promise<TransactionSignature[]> {
+        const updateCommand = new Transaction();
+        updateCommand.add(
+            this.program.instruction.updateDepositCap(
+                new anchor.BN(new_value),
+                {
+                    accounts: {
+                        vault: this.vaultId,
+                        owner: owner.publicKey,
+                    },
+                }
+            )
+        );
+        return [await this.program.provider.send(updateCommand, [owner])];
+    }
+
     /**
      *
      * TODO refactor to be more clear
diff --git a/tests/castle-lending-aggregator.ts b/tests/castle-lending-aggregator.ts
index 81b0cbe..3c6b7db 100644
--- a/tests/castle-lending-aggregator.ts
+++ b/tests/castle-lending-aggregator.ts
@@ -370,7 +370,7 @@ describe("castle-vault", () => {
             await mintReserveToken(userReserveTokenAccount, qty);
             try {
                 await depositToVault(qty);
-                assert.ok(false);
+                assert.fail("Deposit should be rejected but was not.");
             } catch (err) {
                 // TODO check err
             }
@@ -387,6 +387,51 @@ describe("castle-vault", () => {
             assert.equal(userLpBalance, 0);
             assert.equal(lpTokenSupply, 0);
         });
+
+        it("Update deposit cap", async function () {
+            const newDepositCap = poolSizeLimit * 0.24;
+            const txs = await vaultClient.updateDepositCap(
+                owner,
+                newDepositCap
+            );
+            await provider.connection.confirmTransaction(
+                txs[txs.length - 1],
+                "singleGossip"
+            );
+            await vaultClient.reload();
+            assert.equal(
+                newDepositCap,
+                vaultClient.vaultState.poolSizeLimit.toNumber()
+            );
+        });
+
+        it("Reject unauthorized deposit cap update", async function () {
+            const noPermissionUser = Keypair.generate();
+
+            const prevDepositCap =
+                vaultClient.vaultState.poolSizeLimit.toNumber();
+            const newDepositCap = prevDepositCap * 0.24;
+
+            try {
+                const txs = await vaultClient.updateDepositCap(
+                    noPermissionUser,
+                    newDepositCap
+                );
+                await provider.connection.confirmTransaction(
+                    txs[txs.length - 1],
+                    "singleGossip"
+                );
+                assert.fail("Transaction should be rejected but was not.");
+            } catch (err) {
+                // TODO check err
+            }
+
+            await vaultClient.reload();
+            assert.equal(
+                prevDepositCap,
+                vaultClient.vaultState.poolSizeLimit.toNumber()
+            );
+        });
     }
 
     function testRebalance(