diff --git a/contracts/LaunchEvent.sol b/contracts/LaunchEvent.sol
index 38ffeda7..8872eecf 100644
--- a/contracts/LaunchEvent.sol
+++ b/contracts/LaunchEvent.sol
@@ -267,6 +267,10 @@ contract LaunchEvent {
             _maxAllocation > 0,
             "LaunchEvent: max allocation must not be zero"
         );
+        require(
+            _tokenIncentivesPercent < 1 ether,
+            "LaunchEvent: token incentives too high"
+        );
 
         issuer = _issuer;
 
diff --git a/test/LaunchEvent.test.js b/test/LaunchEvent.test.js
index 9a5f6729..d04dd189 100644
--- a/test/LaunchEvent.test.js
+++ b/test/LaunchEvent.test.js
@@ -179,6 +179,18 @@ describe("launch event contract initialisation", function () {
       );
     });
 
+    it("should revert if incentives percent too high", async function () {
+      const args = {
+        ...this.validParams,
+        _tokenIncentivesPercent: ethers.utils.parseEther("1"),
+      };
+      await testReverts(
+        this.RocketFactory,
+        args,
+        "LaunchEvent: token incentives too high"
+      );
+    });
+
     it("should revert if startime has elapsed", async function () {
       const args = {
         ...this.validParams,