diff --git a/litellm/proxy/proxy_server.py b/litellm/proxy/proxy_server.py
index 1d0245c51ce..b383317b3b6 100644
--- a/litellm/proxy/proxy_server.py
+++ b/litellm/proxy/proxy_server.py
@@ -1331,11 +1331,7 @@ async def startup_event():
         verbose_proxy_logger.debug(f"custom_db_client connecting - {custom_db_client}")
         await custom_db_client.connect()
 
-    if prisma_client is not None:
-        if master_key is None:
-            raise ValueError(
-                "Using Proxy Auth, but Master Key not set, please set `LITELLM_MASTER_KEY` in your environment or `master_key` in your config.yaml"
-            )
+    if prisma_client is not None and master_key is not None:
         # add master key to db
         await generate_key_helper_fn(
             duration=None, models=[], aliases={}, config={}, spend=0, token=master_key
@@ -1343,11 +1339,7 @@ async def startup_event():
     verbose_proxy_logger.debug(
         f"custom_db_client client - Inserting master key {custom_db_client}. Master_key: {master_key}"
     )
-    if custom_db_client is not None:
-        if master_key is None:
-            raise ValueError(
-                "Using Proxy Auth, but Master Key not set, please set `LITELLM_MASTER_KEY` in your environment or `master_key` in your config.yaml"
-            )
+    if custom_db_client is not None and master_key is not None:
         # add master key to db
         await generate_key_helper_fn(
             duration=None, models=[], aliases={}, config={}, spend=0, token=master_key