diff --git a/src/fiber/channel.rs b/src/fiber/channel.rs
index 1ae4ccb4..71d3b3b4 100644
--- a/src/fiber/channel.rs
+++ b/src/fiber/channel.rs
@@ -480,14 +480,14 @@ where
             FiberChannelMessage::AddTlc(add_tlc) => {
                 // TODO: here we only check the error which sender didn't follow agreed rules,
                 //       if any error happened here we need go to shutdown procedure
-                state.check_for_tlc_update(Some(add_tlc.amount))?;
+                state.check_for_tlc_update(Some(add_tlc.amount), false)?;
                 state
                     .staging_tlc_operations
                     .push(TlcOperation::AddTlc(add_tlc.clone()));
                 Ok(())
             }
             FiberChannelMessage::RemoveTlc(remove_tlc) => {
-                state.check_for_tlc_update(None)?;
+                state.check_for_tlc_update(None, false)?;
                 state
                     .staging_tlc_operations
                     .push(TlcOperation::RemoveTlc(remove_tlc.clone()));
@@ -1164,7 +1164,7 @@ where
     ) -> Result<u64, ProcessingChannelError> {
         debug!("handle add tlc command : {:?}", &command);
         state.check_ack_status_for_tlc()?;
-        state.check_for_tlc_update(Some(command.amount))?;
+        state.check_for_tlc_update(Some(command.amount), true)?;
         state.check_tlc_expiry(command.expiry)?;
         let tlc = state.create_outbounding_tlc(command);
         state.insert_tlc(tlc.clone())?;
@@ -1206,7 +1206,7 @@ where
         command: RemoveTlcCommand,
     ) -> ProcessingChannelResult {
         state.check_ack_status_for_tlc()?;
-        state.check_for_tlc_update(None)?;
+        state.check_for_tlc_update(None, false)?;
         let tlc = state.remove_tlc_with_reason(TLCId::Received(command.id), &command.reason)?;
         let msg = FiberMessageWithPeerId::new(
             state.get_remote_peer_id(),
@@ -4228,7 +4228,11 @@ impl ChannelActorState {
         Ok(())
     }
 
-    fn check_for_tlc_update(&self, add_tlc_amount: Option<u128>) -> ProcessingChannelResult {
+    fn check_for_tlc_update(
+        &self,
+        add_tlc_amount: Option<u128>,
+        check_for_remote: bool,
+    ) -> ProcessingChannelResult {
         match self.state {
             ChannelState::ChannelReady() => {}
             ChannelState::ShuttingDown(_) if add_tlc_amount.is_none() => {}
@@ -4246,23 +4250,37 @@ impl ChannelActorState {
         }
 
         if let Some(add_amount) = add_tlc_amount {
-            let active_tls_number = self.get_active_offered_tlcs(true).count()
-                + self.get_active_received_tlcs(true).count();
-
-            if active_tls_number as u64 + 1 > self.max_tlc_number_in_flight {
-                return Err(ProcessingChannelError::TlcNumberExceedLimit);
+            self.check_tlc_limits(add_amount, true)?;
+            if check_for_remote {
+                // TODO: this should be replaced by using the remote channel's max_tlc_number_in_flight and max_tlc_value_in_flight
+                self.check_tlc_limits(add_amount, false)?;
             }
+        }
+        Ok(())
+    }
 
-            if self
-                .get_active_received_tlcs(true)
-                .chain(self.get_active_offered_tlcs(true))
-                .fold(0_u128, |sum, tlc| sum + tlc.tlc.amount)
-                + add_amount
-                > self.max_tlc_value_in_flight
-            {
-                return Err(ProcessingChannelError::TlcValueInflightExceedLimit);
-            }
+    fn check_tlc_limits(
+        &self,
+        add_amount: u128,
+        local: bool,
+    ) -> Result<(), ProcessingChannelError> {
+        let active_tls_number = self.get_active_offered_tlcs(local).count()
+            + self.get_active_received_tlcs(local).count();
+
+        if active_tls_number as u64 + 1 > self.max_tlc_number_in_flight {
+            return Err(ProcessingChannelError::TlcNumberExceedLimit);
+        }
+
+        if self
+            .get_active_received_tlcs(local)
+            .chain(self.get_active_offered_tlcs(local))
+            .fold(0_u128, |sum, tlc| sum + tlc.tlc.amount)
+            + add_amount
+            > self.max_tlc_value_in_flight
+        {
+            return Err(ProcessingChannelError::TlcValueInflightExceedLimit);
         }
+
         Ok(())
     }