diff --git a/resources/local/chainspec.toml.in b/resources/local/chainspec.toml.in
index 4702f56d6d..7e5db14c9e 100644
--- a/resources/local/chainspec.toml.in
+++ b/resources/local/chainspec.toml.in
@@ -117,7 +117,7 @@ refund_handling = { type = 'no_refund' }
 #                 administrator accounts
 #   'burn': fees are burned
 fee_handling = { type = 'no_fee' }
-# The proportion of baseline rewards going to reward finality signatures specifically.
+# If a validator would recieve a validator credit, it cannot exceed this percentage of their total stake.
 validator_credit_cap = [1, 5]
 # Defines how pricing is handled.
 #
diff --git a/resources/production/chainspec.toml b/resources/production/chainspec.toml
index aea399e2bd..d6c1008c80 100644
--- a/resources/production/chainspec.toml
+++ b/resources/production/chainspec.toml
@@ -127,7 +127,7 @@ refund_handling = { type = 'no_refund' }
 #                 administrator accounts
 #   'burn': fees are burned
 fee_handling = { type = 'no_fee' }
-# The proportion of baseline rewards going to reward finality signatures specifically.
+# If a validator would recieve a validator credit, it cannot exceed this percentage of their total stake.
 validator_credit_cap = [1, 5]
 # Defines how pricing is handled.
 #
diff --git a/storage/src/system/auction/detail.rs b/storage/src/system/auction/detail.rs
index ceb7433942..f7dfe4c812 100644
--- a/storage/src/system/auction/detail.rs
+++ b/storage/src/system/auction/detail.rs
@@ -130,12 +130,14 @@ impl ValidatorBidsDetail {
                 && !v.inactive()
         }) {
             let staked_amount = total_staked_amount(provider, bid)?;
-            let total = staked_amount.saturating_add(self.credit_amount(
+            let credit_amount = self.credit_amount(
                 validator_public_key,
                 era_ending,
+                staked_amount,
                 include_credits,
                 cap,
-            ));
+            );
+            let total = staked_amount.saturating_add(credit_amount);
             ret.insert(validator_public_key.clone(), total);
         }
 
@@ -146,6 +148,7 @@ impl ValidatorBidsDetail {
         &self,
         validator_public_key: &PublicKey,
         era_ending: EraId,
+        staked_amount: U512,
         include_credit: bool,
         cap: Ratio<U512>,
     ) -> U512 {
@@ -155,8 +158,11 @@ impl ValidatorBidsDetail {
 
         if let Some(inner) = self.validator_credits.get(validator_public_key) {
             if let Some(credit) = inner.get(&era_ending) {
-                let amount = Ratio::new_raw(credit.amount(), U512::one());
-                return amount.mul(cap).to_integer();
+                let capped = Ratio::new_raw(staked_amount, U512::one())
+                    .mul(cap)
+                    .to_integer();
+                let credit_amount = credit.amount();
+                return credit_amount.min(capped);
             }
         }