diff --git a/ibctesting/eibc_test.go b/ibctesting/eibc_test.go
index 9d47ef50d..df9bb4341 100644
--- a/ibctesting/eibc_test.go
+++ b/ibctesting/eibc_test.go
@@ -343,6 +343,7 @@ func (suite *EIBCTestSuite) TestTimeoutEIBCDemandOrderFulfillment() {
 	type TC struct {
 		name     string
 		malleate func(channeltypes.Packet)
+		fee      func(params eibctypes.Params) sdk.Dec
 	}
 
 	nOrdersCreated := 0
@@ -361,6 +362,9 @@ func (suite *EIBCTestSuite) TestTimeoutEIBCDemandOrderFulfillment() {
 				err := hubEndpoint.TimeoutPacket(packet)
 				suite.Require().NoError(err)
 			},
+			fee: func(params eibctypes.Params) sdk.Dec {
+				return params.TimeoutFee
+			},
 		},
 		{
 			name: "err acknowledgement",
@@ -378,6 +382,9 @@ func (suite *EIBCTestSuite) TestTimeoutEIBCDemandOrderFulfillment() {
 				err = hubEndpoint.AcknowledgePacket(packet, ack.Acknowledgement())
 				suite.Require().NoError(err)
 			},
+			fee: func(params eibctypes.Params) sdk.Dec {
+				return params.ErrackFee
+			},
 		},
 	} {
 		suite.Run(tc.name, func() {
@@ -428,10 +435,10 @@ func (suite *EIBCTestSuite) TestTimeoutEIBCDemandOrderFulfillment() {
 			// Get the last demand order created t
 			lastDemandOrder := getLastDemandOrderByChannelAndSequence(demandOrders)
 			// Validate the demand order price and denom
-			timeoutFee := eibcKeeper.GetParams(suite.hubChain.GetContext()).TimeoutFee
+			fee := tc.fee(eibcKeeper.GetParams(suite.hubChain.GetContext()))
 			amountDec, err := sdk.NewDecFromStr(coinToSendToB.Amount.String())
 			suite.Require().NoError(err)
-			expectedPrice := amountDec.Mul(sdk.NewDec(1).Sub(timeoutFee)).TruncateInt()
+			expectedPrice := amountDec.Mul(sdk.NewDec(1).Sub(fee)).TruncateInt()
 			suite.Require().Equal(expectedPrice, lastDemandOrder.Price[0].Amount)
 			suite.Require().Equal(coinToSendToB.Denom, lastDemandOrder.Price[0].Denom)
 			// Fulfill the demand order
diff --git a/x/delayedack/eibc.go b/x/delayedack/eibc.go
index fedbe08a0..c197904f7 100644
--- a/x/delayedack/eibc.go
+++ b/x/delayedack/eibc.go
@@ -61,14 +61,15 @@ func (im IBCMiddleware) eIBCDemandOrderHandler(ctx sdk.Context, rollappPacket co
 		if t == commontypes.RollappPacket_ON_ACK {
 			feeMultiplier = im.keeper.ErrAckFee(ctx)
 		}
-		if feeMultiplier.IsZero() {
-			logger.Debug("fee is zero, skipping demand order creation", "fee type", t)
+
+		fee := amountDec.Mul(feeMultiplier).TruncateInt()
+		if !fee.IsPositive() {
+			logger.Debug("fee is not positive, skipping demand order creation", "fee type", t, "fee", fee.String(), "multiplier", feeMultiplier.String())
 			return nil
 		}
-		fee := amountDec.Mul(feeMultiplier).TruncateInt().String()
 		packetMetaData = &types.PacketMetadata{
 			EIBC: &types.EIBCMetadata{
-				Fee: fee,
+				Fee: fee.String(),
 			},
 		}
 	}
@@ -108,13 +109,13 @@ func (im IBCMiddleware) createDemandOrderFromIBCPacket(fungibleTokenPacketData t
 	if im.keeper.BlockedAddr(fungibleTokenPacketData.Receiver) {
 		return nil, fmt.Errorf("not allowed to receive funds: receiver: %s", fungibleTokenPacketData.Receiver)
 	}
-	// Get the fee from the memo
-	fee := eibcMetaData.Fee
 	// Calculate the demand order price and validate it
 	amountInt, ok := sdk.NewIntFromString(fungibleTokenPacketData.Amount)
 	if !ok || !amountInt.IsPositive() {
 		return nil, fmt.Errorf("convert amount to positive integer: %s", fungibleTokenPacketData.Amount)
 	}
+	// Get the fee from the memo
+	fee := eibcMetaData.Fee
 	feeInt, ok := sdk.NewIntFromString(fee)
 	if !ok || !feeInt.IsPositive() {
 		return nil, fmt.Errorf("convert fee to positive integer: %s", fee)