diff --git a/lightningd/dual_open_control.c b/lightningd/dual_open_control.c
index f367cc671..f18881405 100644
--- a/lightningd/dual_open_control.c
+++ b/lightningd/dual_open_control.c
@@ -1456,15 +1456,21 @@ static void handle_peer_tx_sigs_sent(struct subd *dualopend,
 		 *   transaction `feerate`
 		 */
 		if (!feerate_satisfied(inflight->funding_psbt,
-				       inflight->funding->feerate))
-			channel_fail_permanent(channel,
-					       REASON_PROTOCOL,
-					       "Agreed feerate %dperkw not"
-					       " met with witnesses %s",
+				       inflight->funding->feerate)) {
+			char *errmsg = tal_fmt(tmpctx,
+					       "Witnesses lower effective"
+					       " feerate below agreed upon rate"
+					       " of %dperkw. Failing channel."
+					       " Offending PSBT: %s",
 					       inflight->funding->feerate,
 					       type_to_string(tmpctx,
-							      struct wally_psbt,
-							      inflight->funding_psbt));
+						      struct wally_psbt,
+						      inflight->funding_psbt));
+
+			/* Notify the peer we're failing */
+			subd_send_msg(dualopend,
+				      take(towire_dualopend_fail(NULL, errmsg)));
+		}
 	}
 }
 
@@ -1778,15 +1784,21 @@ static void handle_peer_tx_sigs_msg(struct subd *dualopend,
 		 *   transaction `feerate`
 		 */
 		if (!feerate_satisfied(inflight->funding_psbt,
-				       inflight->funding->feerate))
-			channel_fail_permanent(channel,
-					       REASON_PROTOCOL,
-					       "Agreed feerate %dperkw not"
-					       " met with witnesses %s",
+				       inflight->funding->feerate)) {
+			char *errmsg = tal_fmt(tmpctx,
+					       "Witnesses lower effective"
+					       " feerate below agreed upon rate"
+					       " of %dperkw. Failing channel."
+					       " Offending PSBT: %s",
 					       inflight->funding->feerate,
 					       type_to_string(tmpctx,
-							      struct wally_psbt,
-							      inflight->funding_psbt));
+						      struct wally_psbt,
+						      inflight->funding_psbt));
+
+			/* Notify the peer we're failing */
+			subd_send_msg(dualopend,
+				      take(towire_dualopend_fail(NULL, errmsg)));
+		}
 	}
 
 	/* Send notification with peer's signed PSBT */
diff --git a/openingd/dualopend.c b/openingd/dualopend.c
index b22b80060..0d85f2e5a 100644
--- a/openingd/dualopend.c
+++ b/openingd/dualopend.c
@@ -436,6 +436,17 @@ static void handle_our_shutdown(struct state *state, u8 *msg)
 	billboard_update(state);
 }
 
+static void handle_failure_fatal(struct state *state, u8 *msg)
+{
+	char *err;
+
+	if (!fromwire_dualopend_fail(msg, msg, &err))
+		master_badmsg(fromwire_peektype(msg), msg);
+
+	/* We're gonna fail here */
+	open_err_fatal(state, "%s", err);
+}
+
 static void check_channel_id(struct state *state,
 			     struct channel_id *id_in,
 			     struct channel_id *orig_id)
@@ -3267,12 +3278,14 @@ static u8 *handle_master_in(struct state *state)
 	case WIRE_DUALOPEND_SEND_SHUTDOWN:
 		handle_our_shutdown(state, msg);
 		return NULL;
+	case WIRE_DUALOPEND_FAIL:
+		handle_failure_fatal(state, msg);
+		return NULL;
 
 	/* Handled inline */
 	case WIRE_DUALOPEND_INIT:
 	case WIRE_DUALOPEND_REINIT:
 	case WIRE_DUALOPEND_DEV_MEMLEAK_REPLY:
-	case WIRE_DUALOPEND_FAIL:
 	case WIRE_DUALOPEND_PSBT_UPDATED:
 	case WIRE_DUALOPEND_GOT_OFFER_REPLY:
 	case WIRE_DUALOPEND_GOT_RBF_OFFER_REPLY: