Failure in initial objective function evaluation. FMINCON cannot continue

I want to find the minimum of cost rate in the following code, but I get error.

%%%%%%%%%%%%%%%%%%% optimization part%%%%%%%%%%

x0=[10,10,2];    % Starting guess  
lb=[1,1,1];    
ub=[30,30,4];
%options=optimset('outputfcn',@outfun,'Largescale','off','Algorithm','interior-point','Display','iter','Tolx',1e-15,'Tolfun',1e-16,'MaxFunEvals',600,'MaxIter',100); 
 options = optimoptions('fmincon','Display','iter-detailed','Algorithm','interior-point','PlotFcn',{@optimplotx,...
 @optimplotfval,@optimplotfirstorderopt},'Tolx',1e-10,'Tolfun',1e-4,'MaxFunEvals',600,'MaxIter',100);
 [x,fval,exitflag,output]=fmincon(@optim,x0,[],[],[],[],lb,ub,[],options)

 function fq=optim(x)
clc;
clear all;
format compact;
alpha1=5;  beta1=0.8;
alpha2=1;  beta2=4;
CI=58;  CR=2000;    CP=1000;
T=20;         % time horizon
H=30;         % failure threshold
N=1000;       % number of observation
M=2;          % number of units
p=T/N;  t=(0:p:T);
g=zeros(M,N+1); G=zeros(M,N+1);
    for i=1:N
        g(1,i)=gamrnd(alpha1*p,beta1);
        G(1,i+1)=G(1,i)+g(1,i);
        g(2,i)=gamrnd(alpha2*p,beta2);
        G(2,i+1)=G(2,i)+g(2,i);
    end
Inspection=2;
tau=Inspection*(1000/20);
u1=G(1,tau)
u2=G(2,tau)
if u1<x(1) 
    if u2<x(2)
%x(1) is for H2 component 1, X(2) is for H2 component 2, and X(3) is for
totalcost=(CI+CR*norep(x(1),x(2),x(3),u1,u2)+CP*(downtime(x(3),u1,u2)))/x(3);
fq=totalcost;
    else
u2=0;
totalcost=(CI+CR*norep(x(1),x(2),x(3),u1,u2)+CP*(downtime(x(3),u1,u2)))/x(3);
fq=totalcost;
    end
 u1=0;
 u2=0;
totalcost=(CI+CR*norep(x(1),x(2),x(3),u1,u2)+CP*(downtime(x(3),u1,u2)))/x(3);
fq=totalcost;  
end
 end

In my code downtime and norep is a defined function. I will get the following error.

Reference to a cleared variable x.
Error in model>optim (line 35)
if u1<x(1)
Error in fmincon (line 536)
      initVals.f = feval(funfcn{3},X,varargin{:});
Error in model (line 10)
 [x,fval,exitflag,output]=fmincon(@optim,x0,[],[],[],[],lb,ub,[],options)
Caused by:
    Failure in initial objective function evaluation. FMINCON cannot continue. 

[dpb]

Your function contains...

function fq=optim(x)
clc;
clear all;

which just wiped out x that you passed it.

There is absolutely no reason for either of those in any function, start by deleting those and then test your function itself first.