diff --git a/crates/precompiles/src/tip20/mod.rs b/crates/precompiles/src/tip20/mod.rs
index b5da8793ae..38d3a81e5f 100644
--- a/crates/precompiles/src/tip20/mod.rs
+++ b/crates/precompiles/src/tip20/mod.rs
@@ -551,6 +551,7 @@ impl TIP20Token {
         );
 
         // 4. Validate ECDSA signature
+        // Only v=27/28 is accepted; v=0/1 is intentionally NOT normalized (see TIP-1004 spec).
         if call.v != 27 && call.v != 28 {
             return Err(TIP20Error::invalid_signature().into());
         }
@@ -558,7 +559,7 @@ impl TIP20Token {
         let sig = Signature::from_scalars_and_parity(call.r, call.s, parity);
         let recovered = alloy::consensus::crypto::secp256k1::recover_signer(&sig, digest)
             .map_err(|_| TIP20Error::invalid_signature())?;
-        if recovered != call.owner {
+        if recovered.is_zero() || recovered != call.owner {
             return Err(TIP20Error::invalid_signature().into());
         }
 
@@ -2600,5 +2601,64 @@ pub(crate) mod tests {
                 Ok(())
             })
         }
+
+        #[test]
+        fn test_permit_zero_address_recovery_reverts() -> eyre::Result<()> {
+            let PermitFixture {
+                mut storage,
+                admin,
+                spender,
+                ..
+            } = PermitFixture::new();
+
+            StorageCtx::enter(&mut storage, || {
+                let mut token = TIP20Setup::create("Test", "TST", admin).apply()?;
+
+                let result = token.permit(ITIP20::permitCall {
+                    owner: Address::ZERO,
+                    spender,
+                    value: U256::from(1000),
+                    deadline: U256::MAX,
+                    v: 27,
+                    r: B256::ZERO,
+                    s: B256::ZERO,
+                });
+
+                assert!(matches!(
+                    result,
+                    Err(TempoPrecompileError::TIP20(TIP20Error::InvalidSignature(_)))
+                ));
+
+                Ok(())
+            })
+        }
+
+        #[test]
+        fn test_permit_domain_separator_changes_with_chain_id() -> eyre::Result<()> {
+            let PermitFixture { admin, .. } = PermitFixture::new();
+
+            let mut storage_a = setup_t2_storage();
+            let mut storage_b =
+                HashMapStorageProvider::new_with_spec(CHAIN_ID + 1, TempoHardfork::T2);
+
+            let ds_a = StorageCtx::enter(&mut storage_a, || {
+                TIP20Setup::create("Test", "TST", admin)
+                    .apply()?
+                    .domain_separator()
+            })?;
+
+            let ds_b = StorageCtx::enter(&mut storage_b, || {
+                TIP20Setup::create("Test", "TST", admin)
+                    .apply()?
+                    .domain_separator()
+            })?;
+
+            assert_ne!(
+                ds_a, ds_b,
+                "domain separator must change when chainId changes"
+            );
+
+            Ok(())
+        }
     }
 }
diff --git a/tips/tip-1004.md b/tips/tip-1004.md
index 67759c82fd..75c30b4d9b 100644
--- a/tips/tip-1004.md
+++ b/tips/tip-1004.md
@@ -173,7 +173,8 @@ The implementation must:
 2. Retrieve the current nonce for `owner` and use it to construct the `structHash` and `digest`
 3. Increment `nonces[owner]`
 4. Validate the signature:
-   - First, use `ecrecover` to recover a signer address from the digest
+   - The `v` parameter must be `27` or `28`. Values of `0` or `1` are **not** normalized and will revert with `InvalidSignature`. Callers using signing libraries that produce `v ∈ {0, 1}` must add `27` before calling `permit`.
+   - Use `ecrecover` to recover a signer address from the digest
    - If `ecrecover` returns a non-zero address that equals `owner`, the signature is valid (EOA case)
    - Otherwise, revert with `InvalidSignature`
 5. Set `allowance[owner][spender] = value`