diff --git a/htlcswitch/link.go b/htlcswitch/link.go
index ae923277..09257ff4 100644
--- a/htlcswitch/link.go
+++ b/htlcswitch/link.go
@@ -1729,15 +1729,18 @@ func (l *channelLink) processLockedInHtlcs(
 					fwdInfo.AmountToForward,
 				)
 
-				// If the amount of the incoming HTLC, minus
-				// our expected fee isn't equal to the
-				// forwarding instructions, then either the
-				// values have been tampered with, or the send
-				// used incorrect/dated information to
+				// If the actual fee is less than our expected
+				// fee, then we'll reject this HTLC as it
+				// didn't provide a sufficient amount of fees,
+				// or the values have been tampered with, or
+				// the send used incorrect/dated information to
 				// construct the forwarding information for
 				// this hop. In any case, we'll cancel this
 				// HTLC.
-				if pd.Amount-expectedFee < fwdInfo.AmountToForward {
+				actualFee := pd.Amount - fwdInfo.AmountToForward
+				if pd.Amount < fwdInfo.AmountToForward ||
+					actualFee < expectedFee {
+
 					log.Errorf("Incoming htlc(%x) has "+
 						"insufficient fee: expected "+
 						"%v, got %v", pd.RHash[:],
diff --git a/htlcswitch/link_test.go b/htlcswitch/link_test.go
index 8add4e84..6602dd5a 100644
--- a/htlcswitch/link_test.go
+++ b/htlcswitch/link_test.go
@@ -777,7 +777,7 @@ func TestUpdateForwardingPolicy(t *testing.T) {
 		testStartingHeight,
 		n.firstBobChannelLink, n.carolChannelLink)
 
-	// First, send this 1 BTC payment over the three hops, the payment
+	// First, send this 10 mSAT payment over the three hops, the payment
 	// should succeed, and all balances should be updated accordingly.
 	payResp, err := n.makePayment(n.aliceServer, n.carolServer,
 		n.bobServer.PubKey(), hops, amountNoFee, htlcAmt,
@@ -827,7 +827,7 @@ func TestUpdateForwardingPolicy(t *testing.T) {
 	n.firstBobChannelLink.UpdateForwardingPolicy(newPolicy)
 
 	// Next, we'll send the payment again, using the exact same per-hop
-	// payload for each node. This payment should fail as it wont' factor
+	// payload for each node. This payment should fail as it won't factor
 	// in Bob's new fee policy.
 	_, err = n.makePayment(n.aliceServer, n.carolServer,
 		n.bobServer.PubKey(), hops, amountNoFee, htlcAmt,
diff --git a/lnwallet/channel.go b/lnwallet/channel.go
index 66036dfa..3cb97f81 100644
--- a/lnwallet/channel.go
+++ b/lnwallet/channel.go
@@ -2139,14 +2139,24 @@ func (lc *LightningChannel) createCommitmentTx(c *commitment,
 	// With the weight known, we can now calculate the commitment fee,
 	// ensuring that we account for any dust outputs trimmed above.
 	commitFee := c.feePerKw.FeeForWeight(totalCommitWeight)
+	commitFeeMSat := lnwire.NewMSatFromSatoshis(commitFee)
 
 	// Currently, within the protocol, the initiator always pays the fees.
 	// So we'll subtract the fee amount from the balance of the current
-	// initiator.
-	if lc.channelState.IsInitiator {
-		ourBalance -= lnwire.NewMSatFromSatoshis(commitFee)
-	} else if !lc.channelState.IsInitiator {
-		theirBalance -= lnwire.NewMSatFromSatoshis(commitFee)
+	// initiator. If the initiator is unable to pay the fee fully, then
+	// their entire output is consumed.
+	switch {
+	case lc.channelState.IsInitiator && commitFee > ourBalance.ToSatoshis():
+		ourBalance = 0
+
+	case lc.channelState.IsInitiator:
+		ourBalance -= commitFeeMSat
+
+	case !lc.channelState.IsInitiator && commitFee > theirBalance.ToSatoshis():
+		theirBalance = 0
+
+	case !lc.channelState.IsInitiator:
+		theirBalance -= commitFeeMSat
 	}
 
 	var (
@@ -3042,14 +3052,14 @@ func (lc *LightningChannel) ChanSyncMsg() (*lnwire.ChannelReestablish, error) {
 	}, nil
 }
 
-// computeView takes the given htlcView, and calculates the balances,
-// filtered view (settling unsettled HTLCs), commitment weight and
-// feePerKw, after applying the HTLCs to the latest commitment. The
-// returned balanced are the balances *before* subtracting the
-// commitment fee from the initiator's balance.
+// computeView takes the given htlcView, and calculates the balances, filtered
+// view (settling unsettled HTLCs), commitment weight and feePerKw, after
+// applying the HTLCs to the latest commitment. The returned balances are the
+// balances *before* subtracting the commitment fee from the initiator's
+// balance.
 //
-// If the updateState boolean is set true, the add and remove heights
-// of the HTLCs will be set to the next commitment height.
+// If the updateState boolean is set true, the add and remove heights of the
+// HTLCs will be set to the next commitment height.
 func (lc *LightningChannel) computeView(view *htlcView, remoteChain bool,
 	updateState bool) (lnwire.MilliSatoshi, lnwire.MilliSatoshi, int64,
 	*htlcView, SatPerKWeight) {
@@ -3061,16 +3071,16 @@ func (lc *LightningChannel) computeView(view *htlcView, remoteChain bool,
 		dustLimit = lc.remoteChanCfg.DustLimit
 	}
 
-	// Since the fetched htlc view will include all updates added
-	// after the last committed state, we start with the balances
-	// reflecting that state.
+	// Since the fetched htlc view will include all updates added after the
+	// last committed state, we start with the balances reflecting that
+	// state.
 	ourBalance := commitChain.tip().ourBalance
 	theirBalance := commitChain.tip().theirBalance
 
 	// Add the fee from the previous commitment state back to the
 	// initiator's balance, so that the fee can be recalculated and
-	// re-applied in case fee estimation parameters have changed or
-	// the number of outstanding HTLCs has changed.
+	// re-applied in case fee estimation parameters have changed or the
+	// number of outstanding HTLCs has changed.
 	if lc.channelState.IsInitiator {
 		ourBalance += lnwire.NewMSatFromSatoshis(
 			commitChain.tip().fee)
@@ -3080,11 +3090,10 @@ func (lc *LightningChannel) computeView(view *htlcView, remoteChain bool,
 	}
 	nextHeight := commitChain.tip().height + 1
 
-	// We evaluate the view at this stage, meaning settled and
-	// failed HTLCs will remove their corresponding added HTLCs.
-	// The resulting filtered view will only have Add entries left,
-	// making it easy to compare the channel constraints to the
-	// final commitment state.
+	// We evaluate the view at this stage, meaning settled and failed HTLCs
+	// will remove their corresponding added HTLCs.  The resulting filtered
+	// view will only have Add entries left, making it easy to compare the
+	// channel constraints to the final commitment state.
 	filteredHTLCView := lc.evaluateHTLCView(view, &ourBalance,
 		&theirBalance, nextHeight, remoteChain, updateState)
 
@@ -3155,6 +3164,7 @@ func (lc *LightningChannel) computeView(view *htlcView, remoteChain bool,
 func (lc *LightningChannel) validateCommitmentSanity(theirLogCounter,
 	ourLogCounter uint64, remoteChain bool,
 	predictAdded *PaymentDescriptor) error {
+
 	// Fetch all updates not committed.
 	view := lc.fetchHTLCView(theirLogCounter, ourLogCounter)
 
@@ -3162,8 +3172,8 @@ func (lc *LightningChannel) validateCommitmentSanity(theirLogCounter,
 	// update log, in order to validate the sanity of the commitment
 	// resulting from _actually adding_ this HTLC to the state.
 	if predictAdded != nil {
-		// If we are adding an HTLC, this will be an Add to the
-		// local update log.
+		// If we are adding an HTLC, this will be an Add to the local
+		// update log.
 		view.ourUpdates = append(view.ourUpdates, predictAdded)
 	}
 
@@ -3174,21 +3184,33 @@ func (lc *LightningChannel) validateCommitmentSanity(theirLogCounter,
 	ourInitialBalance := commitChain.tip().ourBalance
 	theirInitialBalance := commitChain.tip().theirBalance
 
-	ourBalance, theirBalance, commitWeight, filteredView, feePerKw :=
-		lc.computeView(view, remoteChain, false)
+	ourBalance, theirBalance, commitWeight, filteredView, feePerKw := lc.computeView(
+		view, remoteChain, false,
+	)
 
-	// Calculate the commitment fee, and subtract it from the
-	// initiator's balance.
+	// Calculate the commitment fee, and subtract it from the initiator's
+	// balance.
 	commitFee := feePerKw.FeeForWeight(commitWeight)
+	commitFeeMsat := lnwire.NewMSatFromSatoshis(commitFee)
 	if lc.channelState.IsInitiator {
-		ourBalance -= lnwire.NewMSatFromSatoshis(commitFee)
+		ourBalance -= commitFeeMsat
 	} else {
-		theirBalance -= lnwire.NewMSatFromSatoshis(commitFee)
+		theirBalance -= commitFeeMsat
 	}
 
-	// If the added HTLCs will decrease the balance, make sure
-	// they won't dip the local and remote balances below the
-	// channel reserves.
+	// As a quick sanity check, we'll ensure that if we interpret the
+	// balances as signed integers, they haven't dipped down below zero. If
+	// they have, then this indicates that a party doesn't have sufficient
+	// balance to satisfy the final evaluated HTLC's.
+	switch {
+	case int64(ourBalance) < 0:
+		return ErrBelowChanReserve
+	case int64(theirBalance) < 0:
+		return ErrBelowChanReserve
+	}
+
+	// If the added HTLCs will decrease the balance, make sure they won't
+	// dip the local and remote balances below the channel reserves.
 	if ourBalance < ourInitialBalance &&
 		ourBalance < lnwire.NewMSatFromSatoshis(
 			lc.localChanCfg.ChanReserve) {
@@ -3201,62 +3223,63 @@ func (lc *LightningChannel) validateCommitmentSanity(theirLogCounter,
 		return ErrBelowChanReserve
 	}
 
-	// validateUpdates take a set of updates, and validates them
-	// against the passed channel constraints.
+	// validateUpdates take a set of updates, and validates them against
+	// the passed channel constraints.
 	validateUpdates := func(updates []*PaymentDescriptor,
 		constraints *channeldb.ChannelConfig) error {
 
-		// We keep track of the number of HTLCs in flight for
-		// the commitment, and the amount in flight.
+		// We keep track of the number of HTLCs in flight for the
+		// commitment, and the amount in flight.
 		var numInFlight uint16
 		var amtInFlight lnwire.MilliSatoshi
 
-		// Go through all updates, checking that they don't
-		// violate the channel constraints.
+		// Go through all updates, checking that they don't violate the
+		// channel constraints.
 		for _, entry := range updates {
 			if entry.EntryType == Add {
-				// An HTLC is being added, this will
-				// add to the number and amount in
-				// flight.
+				// An HTLC is being added, this will add to the
+				// number and amount in flight.
 				amtInFlight += entry.Amount
 				numInFlight++
 
-				// Check that the value of the HTLC they
-				// added is above our minimum.
+				// Check that the value of the HTLC they added
+				// is above our minimum.
 				if entry.Amount < constraints.MinHTLC {
 					return ErrBelowMinHTLC
 				}
 			}
 		}
 
-		// Now that we know the total value of added HTLCs,
-		// we check that this satisfy the MaxPendingAmont
-		// contraint.
+		// Now that we know the total value of added HTLCs, we check
+		// that this satisfy the MaxPendingAmont contraint.
 		if amtInFlight > constraints.MaxPendingAmount {
 			return ErrMaxPendingAmount
 		}
 
-		// In this step, we verify that the total number of
-		// active HTLCs does not exceed the constraint of the
-		// maximum number of HTLCs in flight.
+		// In this step, we verify that the total number of active
+		// HTLCs does not exceed the constraint of the maximum number
+		// of HTLCs in flight.
 		if numInFlight > constraints.MaxAcceptedHtlcs {
 			return ErrMaxHTLCNumber
 		}
+
 		return nil
 	}
 
-	// First check that the remote updates won't violate it's
-	// channel constraints.
-	err := validateUpdates(filteredView.theirUpdates,
-		lc.remoteChanCfg)
+	// First check that the remote updates won't violate it's channel
+	// constraints.
+	err := validateUpdates(
+		filteredView.theirUpdates, lc.remoteChanCfg,
+	)
 	if err != nil {
 		return err
 	}
 
-	// Secondly check that our updates won't violate our
-	// channel constraints.
-	err = validateUpdates(filteredView.ourUpdates,
-		lc.localChanCfg)
+	// Secondly check that our updates won't violate our channel
+	// constraints.
+	err = validateUpdates(
+		filteredView.ourUpdates, lc.localChanCfg,
+	)
 	if err != nil {
 		return err
 	}
@@ -3815,11 +3838,13 @@ func (lc *LightningChannel) AddHTLC(htlc *lnwire.UpdateAddHTLC) (uint64, error)
 		OnionBlob: htlc.OnionBlob[:],
 	}
 
-	// Make sure adding this HTLC won't violate any of the constrainst
-	// we must keep on our commitment transaction.
+	// Make sure adding this HTLC won't violate any of the constraints we
+	// must keep on our commitment transaction.
 	remoteACKedIndex := lc.localCommitChain.tail().theirMessageIndex
-	if err := lc.validateCommitmentSanity(remoteACKedIndex,
-		lc.localUpdateLog.logIndex, true, pd); err != nil {
+	err := lc.validateCommitmentSanity(
+		remoteACKedIndex, lc.localUpdateLog.logIndex, true, pd,
+	)
+	if err != nil {
 		return 0, err
 	}
 
@@ -5112,10 +5137,18 @@ func (lc *LightningChannel) validateFeeRate(feePerKw SatPerKWeight) error {
 	newFee := lnwire.NewMSatFromSatoshis(
 		feePerKw.FeeForWeight(txWeight),
 	)
-	balanceAfterFee := availableBalance - newFee
+
+	// If the total fee exceeds our available balance, then we'll reject
+	// this update as it would mean we need to trim our entire output.
+	if newFee > availableBalance {
+		return fmt.Errorf("cannot apply fee_update=%v sat/kw, new fee "+
+			"of %v is greater than balance of %v", int64(feePerKw),
+			newFee, availableBalance)
+	}
 
 	// If this new balance is below our reserve, then we can't accommodate
 	// the fee change, so we'll reject it.
+	balanceAfterFee := availableBalance - newFee
 	if balanceAfterFee.ToSatoshis() < lc.channelState.LocalChanCfg.ChanReserve {
 		return fmt.Errorf("cannot apply fee_update=%v sat/kw, "+
 			"insufficient balance: start=%v, end=%v",
diff --git a/lnwallet/channel_test.go b/lnwallet/channel_test.go
index 3ea70f15..29895f6f 100644
--- a/lnwallet/channel_test.go
+++ b/lnwallet/channel_test.go
@@ -2462,8 +2462,8 @@ func TestAddHTLCNegativeBalance(t *testing.T) {
 	}
 	defer cleanUp()
 
-	// We set the channel reserve to 0, such that we can add HTLCs
-	// all the way to a negative balance.
+	// We set the channel reserve to 0, such that we can add HTLCs all the
+	// way to a negative balance.
 	aliceChannel.localChanCfg.ChanReserve = 0
 
 	// First, we'll add 3 HTLCs of 1 BTC each to Alice's commitment.
@@ -2476,14 +2476,15 @@ func TestAddHTLCNegativeBalance(t *testing.T) {
 		}
 	}
 
-	// Alice now has an available balance of 2 BTC. We'll add a new HTLC
-	// of value 2 BTC, which should make Alice's balance negative (since
-	// (she has to pay a commitment fee).
+	// Alice now has an available balance of 2 BTC. We'll add a new HTLC of
+	// value 2 BTC, which should make Alice's balance negative (since she
+	// has to pay a commitment fee).
 	htlcAmt = lnwire.NewMSatFromSatoshis(2 * btcutil.SatoshiPerBitcoin)
 	htlc, _ := createHTLC(numHTLCs+1, htlcAmt)
 	_, err = aliceChannel.AddHTLC(htlc)
 	if err != ErrBelowChanReserve {
-		t.Fatalf("expected balance below channel reserve, instead got: %v", err)
+		t.Fatalf("expected balance below channel reserve, instead "+
+			"got: %v", err)
 	}
 }
 
@@ -4375,23 +4376,22 @@ func TestDesyncHTLCs(t *testing.T) {
 		t.Fatalf("unable to recv htlc cancel: %v", err)
 	}
 
-	// Alice now has gotten all here original balance (5 BTC) back,
-	// however, adding a new HTLC at this point SHOULD fail, since
-	// if she add the HTLC and sign the next state, Bob cannot assume
-	// she received the FailHTLC, and must assume she doesn't have
-	// the necessary balance available.
+	// Alice now has gotten all her original balance (5 BTC) back, however,
+	// adding a new HTLC at this point SHOULD fail, since if she adds the
+	// HTLC and signs the next state, Bob cannot assume she received the
+	// FailHTLC, and must assume she doesn't have the necessary balance
+	// available.
 	//
-	// We try adding an HTLC of value 1 BTC, which should fail
-	// because the balance is unavailable.
+	// We try adding an HTLC of value 1 BTC, which should fail because the
+	// balance is unavailable.
 	htlcAmt = lnwire.NewMSatFromSatoshis(1 * btcutil.SatoshiPerBitcoin)
 	htlc, _ = createHTLC(1, htlcAmt)
 	if _, err = aliceChannel.AddHTLC(htlc); err != ErrBelowChanReserve {
-		t.Fatalf("expected ErrInsufficientBalance, instead received: %v",
-			err)
+		t.Fatalf("expected ErrBelowChanReserve, instead received: %v", err)
 	}
 
-	// Now do a state transition, which will ACK the FailHTLC, making
-	// Alice able to add the new HTLC.
+	// Now do a state transition, which will ACK the FailHTLC, making Alice
+	// able to add the new HTLC.
 	if err := forceStateTransition(aliceChannel, bobChannel); err != nil {
 		t.Fatalf("unable to complete state update: %v", err)
 	}
@@ -4403,7 +4403,8 @@ func TestDesyncHTLCs(t *testing.T) {
 // TODO(roasbeef): testing.Quick test case for retrans!!!
 
 // TestMaxAcceptedHTLCs tests that the correct error message (ErrMaxHTLCNumber)
-// is thrown when a node tries to accept more than MaxAcceptedHTLCs in a channel.
+// is thrown when a node tries to accept more than MaxAcceptedHTLCs in a
+// channel.
 func TestMaxAcceptedHTLCs(t *testing.T) {
 	t.Parallel()
 
diff --git a/lnwallet/reservation.go b/lnwallet/reservation.go
index ad0b6456..21a365bd 100644
--- a/lnwallet/reservation.go
+++ b/lnwallet/reservation.go
@@ -157,6 +157,15 @@ func NewChannelReservation(capacity, fundingAmt btcutil.Amount,
 		ourBalance = pushMSat
 		theirBalance = capacityMSat - feeMSat - pushMSat
 		initiator = false
+
+		// If the responder doesn't have enough funds to actually pay
+		// the fees, then we'll bail our early.
+		if int64(theirBalance) < 0 {
+			return nil, ErrFunderBalanceDust(
+				int64(commitFee), int64(theirBalance.ToSatoshis()),
+				int64(2*DefaultDustLimit()),
+			)
+		}
 	} else {
 		// TODO(roasbeef): need to rework fee structure in general and
 		// also when we "unlock" dual funder within the daemon
@@ -177,6 +186,15 @@ func NewChannelReservation(capacity, fundingAmt btcutil.Amount,
 		}
 
 		initiator = true
+
+		// If we, the initiator don't have enough funds to actually pay
+		// the fees, then we'll exit with an error.
+		if int64(ourBalance) < 0 {
+			return nil, ErrFunderBalanceDust(
+				int64(commitFee), int64(ourBalance),
+				int64(2*DefaultDustLimit()),
+			)
+		}
 	}
 
 	// If we're the initiator and our starting balance within the channel
@@ -288,40 +306,36 @@ func (r *ChannelReservation) CommitConstraints(csvDelay, maxHtlcs uint16,
 		return ErrCsvDelayTooLarge(csvDelay, maxDelay)
 	}
 
-	// Fail if we consider the channel reserve to be too large.
-	// We currently fail if it is greater than 20% of the
-	// channel capacity.
+	// Fail if we consider the channel reserve to be too large.  We
+	// currently fail if it is greater than 20% of the channel capacity.
 	maxChanReserve := r.partialState.Capacity / 5
 	if chanReserve > maxChanReserve {
 		return ErrChanReserveTooLarge(chanReserve, maxChanReserve)
 	}
 
-	// Fail if the minimum HTLC value is too large. If this is
-	// too large, the channel won't be useful for sending small
-	// payments. This limit is currently set to maxValueInFlight,
-	// effictively letting the remote setting this as large as
-	// it wants.
-	// TODO(halseth): set a reasonable/dynamic value.
+	// Fail if the minimum HTLC value is too large. If this is too large,
+	// the channel won't be useful for sending small payments. This limit
+	// is currently set to maxValueInFlight, effectively letting the remote
+	// setting this as large as it wants.
 	if minHtlc > maxValueInFlight {
 		return ErrMinHtlcTooLarge(minHtlc, maxValueInFlight)
 	}
 
-	// Fail if maxHtlcs is above the maximum allowed number of 483.
-	// This number is specified in BOLT-02.
+	// Fail if maxHtlcs is above the maximum allowed number of 483.  This
+	// number is specified in BOLT-02.
 	if maxHtlcs > uint16(MaxHTLCNumber/2) {
 		return ErrMaxHtlcNumTooLarge(maxHtlcs, uint16(MaxHTLCNumber/2))
 	}
 
-	// Fail if we consider maxHtlcs too small. If this is too small
-	// we cannot offer many HTLCs to the remote.
+	// Fail if we consider maxHtlcs too small. If this is too small we
+	// cannot offer many HTLCs to the remote.
 	const minNumHtlc = 5
 	if maxHtlcs < minNumHtlc {
 		return ErrMaxHtlcNumTooSmall(maxHtlcs, minNumHtlc)
 	}
 
-	// Fail if we consider maxValueInFlight too small. We currently
-	// require the remote to at least allow minNumHtlc * minHtlc
-	// in flight.
+	// Fail if we consider maxValueInFlight too small. We currently require
+	// the remote to at least allow minNumHtlc * minHtlc in flight.
 	if maxValueInFlight < minNumHtlc*minHtlc {
 		return ErrMaxValueInFlightTooSmall(maxValueInFlight,
 			minNumHtlc*minHtlc)
diff --git a/lnwallet/transactions_test.go b/lnwallet/transactions_test.go
index 47ee6d81..3be7a404 100644
--- a/lnwallet/transactions_test.go
+++ b/lnwallet/transactions_test.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"testing"
 
+	"github.com/davecgh/go-spew/spew"
 	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/keychain"
 	"github.com/lightningnetwork/lnd/lnwire"
@@ -806,8 +807,9 @@ func TestCommitmentAndHTLCTransactions(t *testing.T) {
 			dustLimit:    tc.dustLimit,
 			isOurs:       true,
 		}
-		err = channel.createCommitmentTx(commitmentView, theHTLCView,
-			keys)
+		err = channel.createCommitmentTx(
+			commitmentView, theHTLCView, keys,
+		)
 		if err != nil {
 			t.Errorf("Case %d: Failed to create new commitment tx: %v", i, err)
 			continue
@@ -836,8 +838,8 @@ func TestCommitmentAndHTLCTransactions(t *testing.T) {
 		// Check that commitment transaction was created correctly.
 		if commitTx.WitnessHash() != *expectedCommitmentTx.WitnessHash() {
 			t.Errorf("Case %d: Generated unexpected commitment tx: "+
-				"expected %s, got %s", i, expectedCommitmentTx.WitnessHash(),
-				commitTx.WitnessHash())
+				"expected %s, got %s", i, spew.Sdump(expectedCommitmentTx),
+				spew.Sdump(commitTx))
 			continue
 		}
 
diff --git a/lnwire/msat.go b/lnwire/msat.go
index 1a1e21e0..9ab0e31d 100644
--- a/lnwire/msat.go
+++ b/lnwire/msat.go
@@ -8,7 +8,7 @@ import (
 
 // mSatScale is a value that's used to scale satoshis to milli-satoshis, and
 // the other way around.
-const mSatScale int64 = 1000
+const mSatScale uint64 = 1000
 
 // MilliSatoshi are the native unit of the Lightning Network. A milli-satoshi
 // is simply 1/1000th of a satoshi. There are 1000 milli-satoshis in a single
@@ -16,12 +16,12 @@ const mSatScale int64 = 1000
 // milli-satoshis. As milli-satoshis aren't deliverable on the native
 // blockchain, before settling to broadcasting, the values are rounded down to
 // the nearest satoshi.
-type MilliSatoshi int64
+type MilliSatoshi uint64
 
 // NewMSatFromSatoshis creates a new MilliSatoshi instance from a target amount
 // of satoshis.
 func NewMSatFromSatoshis(sat btcutil.Amount) MilliSatoshi {
-	return MilliSatoshi(int64(sat) * mSatScale)
+	return MilliSatoshi(uint64(sat) * mSatScale)
 }
 
 // ToBTC converts the target MilliSatoshi amount to its corresponding value
@@ -34,10 +34,12 @@ func (m MilliSatoshi) ToBTC() float64 {
 // ToSatoshis converts the target MilliSatoshi amount to satoshis. Simply, this
 // sheds a factor of 1000 from the mSAT amount in order to convert it to SAT.
 func (m MilliSatoshi) ToSatoshis() btcutil.Amount {
-	return btcutil.Amount(int64(m) / mSatScale)
+	return btcutil.Amount(uint64(m) / mSatScale)
 }
 
 // String returns the string representation of the mSAT amount.
 func (m MilliSatoshi) String() string {
-	return fmt.Sprintf("%v mSAT", int64(m))
+	return fmt.Sprintf("%v mSAT", uint64(m))
 }
+
+// TODO(roasbeef): extend with arithmetic operations?
diff --git a/zpay32/invoice_internal_test.go b/zpay32/invoice_internal_test.go
index 99fa8375..50596baf 100644
--- a/zpay32/invoice_internal_test.go
+++ b/zpay32/invoice_internal_test.go
@@ -149,10 +149,6 @@ func TestEncodeAmount(t *testing.T) {
 		valid  bool
 		result string
 	}{
-		{
-			msat:  -10,   // mSat
-			valid: false, // negative amount
-		},
 		{
 			msat:   1, // mSat
 			valid:  true,