diff --git a/cadence/contracts/FlowYieldVaultsEVM.cdc b/cadence/contracts/FlowYieldVaultsEVM.cdc
index 5611b57..958e0fb 100644
--- a/cadence/contracts/FlowYieldVaultsEVM.cdc
+++ b/cadence/contracts/FlowYieldVaultsEVM.cdc
@@ -25,6 +25,13 @@ import "FlowEVMBridgeConfig"
 ///      2. Processing: For each PROCESSING request, executes Cadence-side operation
 ///         (create/deposit/withdraw/close YieldVault), then calls completeProcessing() to mark
 ///         as COMPLETED or FAILED (with refund to EVM contract on CREATE/DEPOSIT failure)
+///      PRECISION NOTE:
+///      EVM uses uint256 with 18 decimals (wei), while Cadence uses UFix64 with 8 decimals.
+///      Converting between these formats truncates precision beyond 8 decimal places.
+///      For example: 1.123456789012345678 FLOW (EVM) becomes 1.12345678 FLOW (Cadence).
+///      This is not exploitable (users receive slightly less, not more) and the 1 FLOW
+///      minimum deposit makes any dust loss negligible (~0.0000001% maximum).
+
 access(all) contract FlowYieldVaultsEVM {
 
     // ============================================
@@ -1929,9 +1936,11 @@ access(all) contract FlowYieldVaultsEVM {
     /// @notice Converts a UInt256 amount from EVM to UFix64 for Cadence
     /// @dev For native FLOW: Uses 18 decimals (attoflow to FLOW conversion)
     ///      For ERC20: Uses FlowEVMBridgeUtils to look up token decimals
+    ///      PRECISION WARNING: UFix64 has only 8 decimal places vs uint256's 18.
+    ///      Precision beyond 8 decimals is truncated (e.g., 1.123456789... → 1.12345678).
     /// @param value The amount in wei/smallest unit (UInt256)
     /// @param tokenAddress The token address to determine decimal conversion
-    /// @return The converted amount in UFix64 format
+    /// @return The converted amount in UFix64 format (truncated to 8 decimals)
     access(self) fun ufix64FromUInt256(_ value: UInt256, tokenAddress: EVM.EVMAddress): UFix64 {
         if tokenAddress.toString() == FlowYieldVaultsEVM.nativeFlowEVMAddress.toString() {
             return FlowEVMBridgeUtils.uint256ToUFix64(value: value, decimals: 18)
diff --git a/solidity/src/FlowYieldVaultsRequests.sol b/solidity/src/FlowYieldVaultsRequests.sol
index 7b4bef1..bf0b21f 100644
--- a/solidity/src/FlowYieldVaultsRequests.sol
+++ b/solidity/src/FlowYieldVaultsRequests.sol
@@ -30,6 +30,11 @@ import {
  *      Processing uses atomic two-phase commit:
  *      - startProcessingBatch(): Marks requests as PROCESSING, deducts user balances
  *      - completeProcessing(): Marks as COMPLETED/FAILED, credits claimable refunds on failure
+ *
+ *      PRECISION NOTE: EVM uses uint256 with 18 decimals, while Cadence uses UFix64 with 8 decimals.
+ *      Amounts are truncated beyond 8 decimal places during cross-VM conversion.
+ *      Example: 1.123456789012345678 FLOW → 1.12345678 FLOW (loss of ~9e-9 FLOW).
+ *      This is not exploitable (truncation favors the protocol) and the minimum deposit mitigates dust.
  */
 contract FlowYieldVaultsRequests is ReentrancyGuard, Ownable2Step {
     using SafeERC20 for IERC20;