diff --git a/packages/protocol/contracts/tokenvault/IBridgedERC20.sol b/packages/protocol/contracts/tokenvault/IBridgedERC20.sol
index 06c274c9225..5750341924c 100644
--- a/packages/protocol/contracts/tokenvault/IBridgedERC20.sol
+++ b/packages/protocol/contracts/tokenvault/IBridgedERC20.sol
@@ -3,9 +3,22 @@ pragma solidity 0.8.24;
 
 /// @title IBridgedERC20
 /// @notice Interface for all bridged tokens.
-/// @dev To facilitate compatibility with third-party bridged tokens, sometimes it might be
-/// necessary to implement an intermediary adapter contract which should conform to this interface,
-/// enabling effective interaction with third-party contracts.
+/// @dev Here is the list of assumptions that guarantees that the bridged token can be bridged back
+/// to it's canonical counterpart (by-default it is, but in case a third-party "native" token is set
+/// and used in our bridge):
+/// - The token should be ERC-20 compliant
+/// - Supply increases should only be caused by mints from the vault. Notably, rebasing tokens are
+/// not supported.
+/// - Token balances should change by exactly the given amounts on `transfer`/`mint`/`burn`. Notable,
+/// tokens with fees on transfers are not supported.
+/// - If the bridged token is not directly deployed by the Bridge (ERC20Vault), - for example a USDT
+/// token bytecode deployed on Taiko to support native tokens - it might be necessary to implement
+/// an intermediary adapter contract which should conform mint() and burn() interfaces, so that the
+/// ERC20Vault can call these actions on the adapter.
+/// - If the bridged token is not directly deployed by the Bridge (ERC20Vault), but conforms the
+/// mint() and burn() interface and the ERC20Vault has the right to perform these actions (has
+/// minter/burner role).
+/// - If the bridged token is directly deployed by our Bridge (ERC20Vault).
 /// @custom:security-contact security@taiko.xyz
 interface IBridgedERC20 {
     /// @notice Mints `amount` tokens and assigns them to the `account` address.