diff --git a/contracts/stream_contract/Cargo.toml b/contracts/stream_contract/Cargo.toml
index 1d1e68c7..fcb70601 100644
--- a/contracts/stream_contract/Cargo.toml
+++ b/contracts/stream_contract/Cargo.toml
@@ -2,6 +2,7 @@
 name = "stream_contract"
 version = "0.1.0"
 edition = "2021"
+description = "Soroban payment-streaming contract with protocol fees"
 
 [lib]
 crate-type = ["cdylib"]
diff --git a/contracts/stream_contract/README.md b/contracts/stream_contract/README.md
new file mode 100644
index 00000000..98738069
--- /dev/null
+++ b/contracts/stream_contract/README.md
@@ -0,0 +1,113 @@
+# `stream_contract`
+
+Soroban smart contract for time-based token streaming with optional protocol fees.
+
+## Overview
+
+`stream_contract` lets a sender deposit tokens into a stream that accrues linearly to a recipient over time.
+The contract supports stream creation, top-ups, withdrawals, cancellation, pause/resume controls, and protocol fee administration.
+
+- Fee cap: `MAX_FEE_RATE_BPS = 1000` (10%)
+- Fee unit: basis points (`bps`), where `100 bps = 1%`
+- Fee collection points: `create_stream`, `top_up_stream`
+
+## Public API
+
+All entrypoints are in `src/lib.rs` under `impl StreamContract`.
+
+### Protocol administration
+
+| Function | Purpose |
+|---|---|
+| `initialize(env, admin, treasury, fee_rate_bps)` | One-time protocol config setup |
+| `update_fee_config(env, admin, treasury, fee_rate_bps)` | Update treasury and/or fee rate (admin-only) |
+| `transfer_admin(env, current_admin, new_admin)` | Transfer admin role |
+| `get_fee_config(env)` | Read current fee config (`Option<ProtocolConfig>`) |
+
+### Stream lifecycle
+
+| Function | Purpose |
+|---|---|
+| `create_stream(env, sender, recipient, token_address, amount, duration)` | Create stream from deposited funds |
+| `top_up_stream(env, sender, stream_id, amount)` | Add more funds to an active stream |
+| `withdraw(env, recipient, stream_id)` | Recipient withdraws currently claimable amount |
+| `cancel_stream(env, sender, stream_id)` | Sender cancels stream and receives remaining balance |
+| `pause_stream(env, sender, stream_id)` | Freeze accrual on an active stream |
+| `resume_stream(env, sender, stream_id)` | Resume accrual and recompute stream end time |
+
+### Read-only queries
+
+| Function | Purpose |
+|---|---|
+| `get_stream(env, stream_id)` | Return full stream record (`Option<Stream>`) |
+| `is_stream_completed(env, stream_id)` | Return completion status |
+| `get_claimable_amount(env, stream_id)` | Compute current claimable amount without state changes |
+
+## Fee and treasury model
+
+Protocol fee config is optional; if not initialized, fee collection is a no-op.
+
+When initialized and `fee_rate_bps > 0`:
+
+- Fee formula: `fee = amount * fee_rate_bps / 10_000`
+- Net credited to stream: `amount - fee`
+- Fee recipient: configured `treasury` address
+- Fee event: `fee_collected` is emitted only when `fee > 0`
+
+### Rounding behavior
+
+Fee math uses integer division. For tiny amounts, fee can round down to zero.
+
+Example:
+- `amount = 1`
+- `fee_rate_bps = 200` (2%)
+- `fee = 1 * 200 / 10_000 = 0`
+
+In this case:
+- no transfer to treasury occurs,
+- no `fee_collected` event is emitted,
+- full amount is credited to the stream.
+
+## Event topics
+
+Events are emitted with the following topics (see `src/events.rs`):
+
+| Event struct | Topic |
+|---|---|
+| `InitializedEvent` | `("initialized",)` |
+| `FeeConfigUpdatedEvent` | `("fee_config_updated",)` |
+| `AdminTransferredEvent` | `("admin_transferred",)` |
+| `StreamCreatedEvent` | `("stream_created", stream_id)` |
+| `StreamToppedUpEvent` | `("stream_topped_up", stream_id)` |
+| `TokensWithdrawnEvent` | `("tokens_withdrawn", stream_id)` |
+| `StreamCancelledEvent` | `("stream_cancelled", stream_id)` |
+| `StreamPausedEvent` | `("stream_paused", stream_id)` |
+| `StreamResumedEvent` | `("stream_resumed", stream_id)` |
+| `StreamCompletedEvent` | `("stream_completed", stream_id)` |
+| `FeeCollectedEvent` | `("fee_collected", stream_id)` |
+
+## `StreamError` reference
+
+Error codes from `src/errors.rs`:
+
+| Code | Variant | Meaning |
+|---:|---|---|
+| 1 | `InvalidAmount` | Amount is zero/negative/out of range |
+| 2 | `StreamNotFound` | Stream ID does not exist |
+| 3 | `Unauthorized` | Caller not authorized for stream action |
+| 4 | `StreamInactive` | Operation requires an active stream |
+| 5 | `AlreadyInitialized` | `initialize` called more than once |
+| 6 | `NotAdmin` | Caller is not protocol admin |
+| 7 | `InvalidFeeRate` | Fee exceeds `MAX_FEE_RATE_BPS` |
+| 8 | `NotInitialized` | Protocol config not initialized |
+| 9 | `InvalidDuration` | Duration is zero |
+| 10 | `InvalidTokenAddress` | Token address is not a token contract |
+| 11 | `InvalidRate` | `amount / duration` rounds to zero |
+
+## Typical flow
+
+1. Admin calls `initialize` with treasury and fee rate.
+2. Sender calls `create_stream`.
+3. Sender may call `top_up_stream`, `pause_stream`, `resume_stream`, or `cancel_stream`.
+4. Recipient calls `withdraw` over time until fully drained.
+5. Final withdrawal emits `stream_completed`.
diff --git a/contracts/stream_contract/src/lib.rs b/contracts/stream_contract/src/lib.rs
index 960feffe..e24ace2f 100644
--- a/contracts/stream_contract/src/lib.rs
+++ b/contracts/stream_contract/src/lib.rs
@@ -1,4 +1,5 @@
 #![no_std]
+#![doc = include_str!("../README.md")]
 
 mod errors;
 mod events;
@@ -658,6 +659,7 @@ impl StreamContract {
     /// emits a `fee_collected` event, and returns the net amount.
     ///
     /// If no protocol config exists or the fee rate is 0, returns `amount` unchanged.
+    /// If fee calculation truncates to 0, no transfer/event occurs and `amount` is unchanged.
     /// Time complexity: O(1).
     fn collect_fee(env: &Env, token_address: &Address, amount: i128, stream_id: u64) -> i128 {
         match try_load_config(env) {
diff --git a/contracts/stream_contract/src/test.rs b/contracts/stream_contract/src/test.rs
index afb15ca1..13a222c1 100644
--- a/contracts/stream_contract/src/test.rs
+++ b/contracts/stream_contract/src/test.rs
@@ -824,6 +824,40 @@ fn test_no_fee_event_when_fee_rate_is_zero() {
     );
 }
 
+#[test]
+fn test_no_fee_transfer_or_event_when_fee_rounds_to_zero() {
+    let env = Env::default();
+    env.mock_all_auths();
+    let (token, _) = create_token(&env);
+    let sender = Address::generate(&env);
+    let admin = Address::generate(&env);
+    let treasury = Address::generate(&env);
+    mint(&env, &token, &sender, 1_000);
+
+    let client = create_contract(&env);
+    let token_client = token::Client::new(&env, &token);
+
+    // Non-zero fee rate, but tiny amount => fee rounds down to 0:
+    // 1 * 200 / 10_000 = 0
+    client.initialize(&admin, &treasury, &200);
+    let id = client.create_stream(&sender, &Address::generate(&env), &token, &1, &1);
+
+    assert_eq!(token_client.balance(&treasury), 0);
+
+    let s = client.get_stream(&id).unwrap();
+    assert_eq!(s.deposited_amount, 1);
+
+    let events = env.events().all();
+    let fee_event = events.iter().find(|e| {
+        Symbol::try_from_val(&env, &e.1.get(0).unwrap()).unwrap()
+            == Symbol::new(&env, "fee_collected")
+    });
+    assert!(
+        fee_event.is_none(),
+        "fee_collected must not fire when rounded fee is 0"
+    );
+}
+
 #[test]
 fn test_no_fee_without_protocol_config() {
     let env = Env::default();