diff --git a/src/DotNetLightning.Core/Channel/Channel.fs b/src/DotNetLightning.Core/Channel/Channel.fs
index 564e0ff9e..9308c16f0 100644
--- a/src/DotNetLightning.Core/Channel/Channel.fs
+++ b/src/DotNetLightning.Core/Channel/Channel.fs
@@ -1471,14 +1471,15 @@ and Channel =
             let remoteChannelKeys =
                 this.SavedChannelState.StaticChannelConfig.RemoteChannelPubKeys
 
-            let lastCommitFeeSatoshi =
-                this.SavedChannelState.StaticChannelConfig.FundingScriptCoin.TxOut.Value
-                - (this.SavedChannelState.LocalCommit.PublishableTxs.CommitTx.Value.TotalOut)
+            let! idealFee =
+                this.FirstClosingFee
+                    localShutdownScriptPubKey
+                    remoteShutdownScriptPubKey
+                |> expectTransactionError
 
-            do!
-                checkRemoteProposedHigherFeeThanBaseFee
-                    lastCommitFeeSatoshi
-                    msg.FeeSatoshis
+            let maxFee =
+                this.SavedChannelState.StaticChannelConfig.LocalParams.MutualCloseMaxFeeMultiplier
+                * idealFee
 
             do!
                 checkRemoteProposedFeeWithinNegotiatedRange
@@ -1550,6 +1551,12 @@ and Channel =
                             nextClosingFee
                         |> expectTransactionError
 
+                    if this.SavedChannelState.StaticChannelConfig.IsFunder
+                       && nextClosingFee > maxFee then
+                        return!
+                            Error
+                            <| ProposalExceedsMaxFee(nextClosingFee, maxFee)
+
                     let nextState =
                         { this.NegotiatingState with
                             LocalClosingFeesProposed =
diff --git a/src/DotNetLightning.Core/Channel/ChannelError.fs b/src/DotNetLightning.Core/Channel/ChannelError.fs
index 76c586a6b..d9723d837 100644
--- a/src/DotNetLightning.Core/Channel/ChannelError.fs
+++ b/src/DotNetLightning.Core/Channel/ChannelError.fs
@@ -62,11 +62,11 @@ type ChannelError =
         height: BlockHeight *
         depth: BlockHeightOffset32
     | CannotCloseChannel of msg: string
-    | RemoteProposedHigherFeeThanBaseFee of baseFee: Money * proposedFee: Money
     | RemoteProposedFeeOutOfNegotiatedRange of
         ourPreviousFee: Money *
         theirPreviousFee: Money *
         theirNextFee: Money
+    | ProposalExceedsMaxFee of proposalFee: Money * maxFee: Money
     | NoUpdatesToSign
     | CannotSignCommitmentBeforeRevocation
     | InsufficientConfirmations of
@@ -108,8 +108,8 @@ type ChannelError =
         | CannotSignCommitmentBeforeRevocation -> Ignore
         | InsufficientConfirmations(_, _) -> Ignore
         | InvalidOperationAddHTLC _ -> Ignore
-        | RemoteProposedHigherFeeThanBaseFee(_, _) -> Close
         | RemoteProposedFeeOutOfNegotiatedRange(_, _, _) -> Close
+        | ProposalExceedsMaxFee(_, _) -> Ignore
 
     member this.Message =
         match this with
@@ -161,12 +161,6 @@ type ChannelError =
             sprintf
                 "They sent shutdown msg (%A) while they have pending unsigned HTLCs, this is protocol violation"
                 msg
-        | RemoteProposedHigherFeeThanBaseFee(baseFee, proposedFee) ->
-            "remote proposed a closing fee higher than commitment fee of the final commitment transaction. "
-            + sprintf
-                "commitment fee=%A; fee remote proposed=%A;"
-                baseFee
-                proposedFee
         | RemoteProposedFeeOutOfNegotiatedRange
             (
                 ourPreviousFee, theirPreviousFee, theirNextFee
@@ -178,6 +172,11 @@ type ChannelError =
                 ourPreviousFee
                 theirPreviousFee
                 theirNextFee
+        | ProposalExceedsMaxFee(proposalFee, maxFee) ->
+            sprintf
+                "latest fee proposal (%i) exceeds max fee (%i)"
+                proposalFee.Satoshi
+                maxFee.Satoshi
         | CryptoError cryptoError ->
             sprintf "Crypto error: %s" cryptoError.Message
         | TransactionRelatedErrors transactionErrors ->
@@ -409,12 +408,6 @@ module internal ChannelError =
     let receivedShutdownWhenRemoteHasUnsignedOutgoingHTLCs msg =
         msg |> ReceivedShutdownWhenRemoteHasUnsignedOutgoingHTLCs |> Error
 
-    let checkRemoteProposedHigherFeeThanBaseFee baseFee proposedFee =
-        if (baseFee < proposedFee) then
-            RemoteProposedHigherFeeThanBaseFee(baseFee, proposedFee) |> Error
-        else
-            Ok()
-
     let checkRemoteProposedFeeWithinNegotiatedRange
         (ourPreviousFeeOpt: Option<Money>)
         (theirPreviousFeeOpt: Option<Money>)
diff --git a/src/DotNetLightning.Core/Channel/ChannelOperations.fs b/src/DotNetLightning.Core/Channel/ChannelOperations.fs
index 4c0b0660d..50e526313 100644
--- a/src/DotNetLightning.Core/Channel/ChannelOperations.fs
+++ b/src/DotNetLightning.Core/Channel/ChannelOperations.fs
@@ -80,6 +80,11 @@ type LocalParams =
         ToSelfDelay: BlockHeightOffset16
         MaxAcceptedHTLCs: uint16
         Features: FeatureBits
+        // MutualCloseMaxFeeMultiplier is a multiplier we'll apply to the ideal fee
+        // of the funder, to decide when the negotiated fee is too high. By
+        // default, we want to bail out if we attempt to negotiate a fee that's
+        // 3x higher than our ideal fee.
+        MutualCloseMaxFeeMultiplier: int
     }
 
 type RemoteParams =
diff --git a/tests/DotNetLightning.Core.Tests/ChannelTests.fs b/tests/DotNetLightning.Core.Tests/ChannelTests.fs
index f740669d0..cdf58eab7 100644
--- a/tests/DotNetLightning.Core.Tests/ChannelTests.fs
+++ b/tests/DotNetLightning.Core.Tests/ChannelTests.fs
@@ -103,6 +103,7 @@ let tests =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteParams: RemoteParams =
diff --git a/tests/DotNetLightning.Core.Tests/TransactionTests.fs b/tests/DotNetLightning.Core.Tests/TransactionTests.fs
index e5008d10e..6e4700500 100644
--- a/tests/DotNetLightning.Core.Tests/TransactionTests.fs
+++ b/tests/DotNetLightning.Core.Tests/TransactionTests.fs
@@ -101,6 +101,7 @@ let testList =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteLocalParam: LocalParams =
@@ -112,6 +113,7 @@ let testList =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteParam: RemoteParams =
@@ -532,6 +534,7 @@ let testList =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteLocalParam: LocalParams =
@@ -543,6 +546,7 @@ let testList =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteParams: RemoteParams =
@@ -887,6 +891,7 @@ let testList =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteLocalParam: LocalParams =
@@ -898,6 +903,7 @@ let testList =
                         ToSelfDelay = 144us |> BlockHeightOffset16
                         MaxAcceptedHTLCs = 1000us
                         Features = FeatureBits.Zero
+                        MutualCloseMaxFeeMultiplier = 3
                     }
 
                 let remoteParam: RemoteParams =