diff --git a/evm/src/NttManager/NttManagerState.sol b/evm/src/NttManager/NttManagerState.sol
index 66b998ce3..366cfedff 100644
--- a/evm/src/NttManager/NttManagerState.sol
+++ b/evm/src/NttManager/NttManagerState.sol
@@ -70,6 +70,7 @@ abstract contract NttManagerState is
         }
         __PausedOwnable_init(msg.sender, msg.sender);
         __ReentrancyGuard_init();
+        _setOutboundLimit(TrimmedAmountLib.max(tokenDecimals_));
     }
 
     function _initialize() internal virtual override {
@@ -272,6 +273,8 @@ abstract contract NttManagerState is
         _getPeersStorage()[peerChainId].peerAddress = peerContract;
         _getPeersStorage()[peerChainId].tokenDecimals = decimals;
 
+        _setInboundLimit(TrimmedAmountLib.max(tokenDecimals_), peerChainId);
+
         emit PeerUpdated(
             peerChainId, oldPeer.peerAddress, oldPeer.tokenDecimals, peerContract, decimals
         );
diff --git a/evm/src/libraries/RateLimiter.sol b/evm/src/libraries/RateLimiter.sol
index 704ac5e0a..ca80aa825 100644
--- a/evm/src/libraries/RateLimiter.sol
+++ b/evm/src/libraries/RateLimiter.sol
@@ -85,12 +85,15 @@ abstract contract RateLimiter is IRateLimiter, IRateLimiterEvents {
         RateLimitParams storage rateLimitParams
     ) internal {
         TrimmedAmount memory oldLimit = rateLimitParams.limit;
-        TrimmedAmount memory currentCapacity = _getCurrentCapacity(rateLimitParams);
+        if (oldLimit.isNull()) {
+            rateLimitParams.currentCapacity = limit;
+        } else {
+            TrimmedAmount memory currentCapacity = _getCurrentCapacity(rateLimitParams);
+            rateLimitParams.currentCapacity =
+                _calculateNewCurrentCapacity(limit, oldLimit, currentCapacity);
+        }
         rateLimitParams.limit = limit;
 
-        rateLimitParams.currentCapacity =
-            _calculateNewCurrentCapacity(limit, oldLimit, currentCapacity);
-
         rateLimitParams.lastTxTimestamp = uint64(block.timestamp);
     }
 
diff --git a/evm/src/libraries/TrimmedAmount.sol b/evm/src/libraries/TrimmedAmount.sol
index b8e7d8fdc..8df4b2aaf 100644
--- a/evm/src/libraries/TrimmedAmount.sol
+++ b/evm/src/libraries/TrimmedAmount.sol
@@ -34,14 +34,6 @@ library TrimmedAmountLib {
     }
 
     function gt(TrimmedAmount memory a, TrimmedAmount memory b) internal pure returns (bool) {
-        // on initialization
-        if (isZero(b) && !isZero(a)) {
-            return true;
-        }
-        if (isZero(a) && !isZero(b)) {
-            return false;
-        }
-
         if (a.decimals != b.decimals) {
             revert NumberOfDecimalsNotEqual(a.decimals, b.decimals);
         }
@@ -50,14 +42,6 @@ library TrimmedAmountLib {
     }
 
     function lt(TrimmedAmount memory a, TrimmedAmount memory b) internal pure returns (bool) {
-        // on initialization
-        if (isZero(b) && !isZero(a)) {
-            return false;
-        }
-        if (isZero(a) && !isZero(b)) {
-            return true;
-        }
-
         if (a.decimals != b.decimals) {
             revert NumberOfDecimalsNotEqual(a.decimals, b.decimals);
         }
@@ -65,8 +49,7 @@ library TrimmedAmountLib {
         return a.amount < b.amount;
     }
 
-    // TODO: is this needed? let's remove it
-    function isZero(TrimmedAmount memory a) internal pure returns (bool) {
+    function isNull(TrimmedAmount memory a) internal pure returns (bool) {
         return (a.amount == 0 && a.decimals == 0);
     }
 
@@ -74,11 +57,6 @@ library TrimmedAmountLib {
         TrimmedAmount memory a,
         TrimmedAmount memory b
     ) internal pure returns (TrimmedAmount memory) {
-        // on initialization
-        if (isZero(b)) {
-            return a;
-        }
-
         if (a.decimals != b.decimals) {
             revert NumberOfDecimalsNotEqual(a.decimals, b.decimals);
         }
@@ -90,15 +68,6 @@ library TrimmedAmountLib {
         TrimmedAmount memory a,
         TrimmedAmount memory b
     ) internal pure returns (TrimmedAmount memory) {
-        // on initialization
-        if (isZero(a)) {
-            return b;
-        }
-
-        if (isZero(b)) {
-            return a;
-        }
-
         if (a.decimals != b.decimals) {
             revert NumberOfDecimalsNotEqual(a.decimals, b.decimals);
         }
@@ -109,15 +78,6 @@ library TrimmedAmountLib {
         TrimmedAmount memory a,
         TrimmedAmount memory b
     ) internal pure returns (TrimmedAmount memory) {
-        // on initialization
-        if (isZero(a)) {
-            return b;
-        }
-
-        if (isZero(b)) {
-            return a;
-        }
-
         if (a.decimals != b.decimals) {
             revert NumberOfDecimalsNotEqual(a.decimals, b.decimals);
         }
@@ -134,14 +94,6 @@ library TrimmedAmountLib {
         TrimmedAmount memory a,
         TrimmedAmount memory b
     ) public pure returns (TrimmedAmount memory) {
-        // on initialization
-        if (isZero(a) && !isZero(b)) {
-            return a;
-        }
-        if (isZero(b) && !isZero(a)) {
-            return b;
-        }
-
         if (a.decimals != b.decimals) {
             revert NumberOfDecimalsNotEqual(a.decimals, b.decimals);
         }
@@ -176,6 +128,11 @@ library TrimmedAmountLib {
         );
     }
 
+    function max(uint8 decimals) internal pure returns (TrimmedAmount memory) {
+        uint8 actualDecimals = minUint8(TRIMMED_DECIMALS, decimals);
+        return TrimmedAmount(type(uint64).max, actualDecimals);
+    }
+
     /// @dev trim the amount to target decimals.
     ///      The actual resulting decimals is the minimum of TRIMMED_DECIMALS,
     ///      fromDecimals, and toDecimals. This ensures that no dust is