diff --git a/staking/integration-tests/src/utils/constants.rs b/staking/integration-tests/src/utils/constants.rs
index f7ac1275..cd19a51a 100644
--- a/staking/integration-tests/src/utils/constants.rs
+++ b/staking/integration-tests/src/utils/constants.rs
@@ -6,5 +6,5 @@ use integrity_pool::utils::types::{
 // 100 PYTH tokens
 pub const STAKED_TOKENS: frac64 = 100 * FRAC_64_MULTIPLIER;
 
-// 10% yield per epoch
-pub const YIELD: frac64 = FRAC_64_MULTIPLIER / 10;
+// 1% yield per epoch
+pub const YIELD: frac64 = FRAC_64_MULTIPLIER / 100;
diff --git a/staking/integration-tests/tests/initialize_pool.rs b/staking/integration-tests/tests/initialize_pool.rs
index 1617a8c4..4eb8a007 100644
--- a/staking/integration-tests/tests/initialize_pool.rs
+++ b/staking/integration-tests/tests/initialize_pool.rs
@@ -19,6 +19,7 @@ use {
     integrity_pool::{
         error::IntegrityPoolError,
         state::pool::PoolConfig,
+        utils::types::FRAC_64_MULTIPLIER,
     },
     solana_sdk::{
         program_error::ProgramError,
@@ -101,4 +102,15 @@ fn test_update_y() {
         IntegrityPoolError::InvalidRewardProgramAuthority,
         0
     );
+
+    assert_anchor_program_error!(
+        update_y(
+            &mut svm,
+            &payer,
+            &reward_program_authority,
+            FRAC_64_MULTIPLIER / 100 + 1
+        ),
+        IntegrityPoolError::InvalidY,
+        0
+    );
 }
diff --git a/staking/programs/integrity-pool/src/error.rs b/staking/programs/integrity-pool/src/error.rs
index 88ce4d77..6051075c 100644
--- a/staking/programs/integrity-pool/src/error.rs
+++ b/staking/programs/integrity-pool/src/error.rs
@@ -30,4 +30,6 @@ pub enum IntegrityPoolError {
     #[msg("Delegation fee must not be greater than 100%")]
     InvalidDelegationFee,
     InvalidPublisher,
+    #[msg("Y should not be greater than 1%")]
+    InvalidY,
 }
diff --git a/staking/programs/integrity-pool/src/lib.rs b/staking/programs/integrity-pool/src/lib.rs
index 61c73047..1cdfe7bf 100644
--- a/staking/programs/integrity-pool/src/lib.rs
+++ b/staking/programs/integrity-pool/src/lib.rs
@@ -36,6 +36,8 @@ pub mod integrity_pool {
         pyth_token_mint: Pubkey,
         y: frac64,
     ) -> Result<()> {
+        require_gte!(FRAC_64_MULTIPLIER / 100, y, IntegrityPoolError::InvalidY);
+
         let pool_config = &mut ctx.accounts.pool_config;
         pool_config.pool_data = ctx.accounts.pool_data.key();
         pool_config.reward_program_authority = reward_program_authority;
@@ -49,6 +51,8 @@ pub mod integrity_pool {
     }
 
     pub fn update_y(ctx: Context<UpdateY>, y: frac64) -> Result<()> {
+        require_gte!(FRAC_64_MULTIPLIER / 100, y, IntegrityPoolError::InvalidY);
+
         ctx.accounts.pool_config.y = y;
         Ok(())
     }