diff --git a/README.md b/README.md
index d46e2ed..d618b24 100644
--- a/README.md
+++ b/README.md
@@ -30,6 +30,15 @@ A configurable escrow program for Solana that enables receipt-based token deposi
 - **Configurable timelocks** - Set lock durations that must pass before withdrawals
 - **Custom hook programs** - Invoke external programs pre/post deposit and withdrawal
 
+## Hook Warning
+
+If a hook is configured and the escrow is later made immutable, that hook configuration becomes permanent.
+
+- The hook cannot be changed or removed after immutability is set.
+- Hook callbacks run at all four hook points: PreDeposit, PostDeposit, PreWithdraw, PostWithdraw.
+- Any hook revert aborts the escrow instruction.
+- A buggy or malicious hook can permanently block deposit and/or withdraw flows.
+
 ## Account Types
 
 | Account          | PDA Seeds                                            | Description                                                 |
diff --git a/apps/web/src/components/instructions/SetHook.tsx b/apps/web/src/components/instructions/SetHook.tsx
index f0e7598..691f2c2 100644
--- a/apps/web/src/components/instructions/SetHook.tsx
+++ b/apps/web/src/components/instructions/SetHook.tsx
@@ -75,6 +75,7 @@ export function SetHook() {
                 value={hookProgram}
                 onChange={setHookProgram}
                 placeholder="Program ID implementing the transfer hook"
+                hint="Warning: if this escrow is later set immutable, this hook dependency becomes permanent and hook reverts will block operations."
                 required
             />
             <SendButton sending={sending} />
diff --git a/apps/web/src/components/instructions/SetImmutable.tsx b/apps/web/src/components/instructions/SetImmutable.tsx
index 2229c9e..1b84f13 100644
--- a/apps/web/src/components/instructions/SetImmutable.tsx
+++ b/apps/web/src/components/instructions/SetImmutable.tsx
@@ -59,7 +59,8 @@ export function SetImmutable() {
         >
             <div>
                 <Badge variant="warning">
-                    This action is one-way. Escrow configuration becomes permanently immutable.
+                    This action is one-way. Escrow configuration becomes permanently immutable. Any configured hook also
+                    becomes permanent, and hook reverts will block escrow operations.
                 </Badge>
             </div>
             <FormField
diff --git a/docs/PROGRAM_OVERVIEW.md b/docs/PROGRAM_OVERVIEW.md
index 41db927..05df643 100644
--- a/docs/PROGRAM_OVERVIEW.md
+++ b/docs/PROGRAM_OVERVIEW.md
@@ -215,6 +215,10 @@ Adds or updates the timelock extension.
 
 Sets the hook program for deposit/withdraw callbacks.
 
+**Warning:**
+
+If an escrow is made immutable after setting a hook, the hook configuration is permanent and cannot be changed or removed.
+
 **Accounts:**
 
 | #   | Name            | Signer | Writable | Description               |
@@ -387,6 +391,12 @@ Withdrawals blocked until `deposited_at + lock_duration`.
 
 Hook receives 1-byte instruction data (hook point) and accounts: escrow, actor, mint, receipt, vault, plus any remaining accounts.
 
+**Warning:**
+
+- Hook execution is fail-closed. Any revert aborts the parent escrow instruction.
+- All four hook points are enforced when a hook is configured.
+- For immutable escrows, hook behavior is permanently embedded.
+
 ---
 
 ### BlockedTokenExtensions (type = 2)
@@ -432,7 +442,7 @@ During `AllowMint`, the program checks if the mint has any blocked Token-2022 ex
 ## Security Considerations
 
 1. **Token-2022 blocking** - PermanentDelegate, NonTransferable, and Pausable are always blocked to prevent token manipulation
-2. **Hook validation** - Hook programs must be passed correctly; mismatches cause HookProgramMismatch error
+2. **Hook validation and liveness dependency** - Hook programs must be passed correctly; mismatches cause HookProgramMismatch, and hook reverts abort escrow operations (`HookRejected`)
 3. **Receipt ownership** - Only the original depositor can withdraw using their receipt
 4. **Timelock enforcement** - Clock sysvar used to verify lock duration has passed
 5. **PDA validation** - All PDAs validated against expected seeds and bumps
diff --git a/program/src/state/extensions/hook.rs b/program/src/state/extensions/hook.rs
index 0f6fd93..564bd02 100644
--- a/program/src/state/extensions/hook.rs
+++ b/program/src/state/extensions/hook.rs
@@ -48,6 +48,10 @@ impl HookData {
 
     /// Validates and invokes the hook program.
     ///
+    /// Important: hook execution is fail-closed. Any hook CPI error aborts the
+    /// parent escrow instruction. If an escrow is set immutable with a hook
+    /// configured, this external dependency is permanently embedded.
+    ///
     /// # Arguments
     /// * `hook_point` - The hook point discriminator
     /// * `remaining_accounts` - Remaining accounts slice: [hook_program, extra_accounts...]
@@ -81,6 +85,7 @@ impl HookData {
             data: &instruction_data,
         };
 
+        // Preserve a stable escrow error surface for all hook CPI failures.
         invoke_with_bounds::<16>(&instruction, &all_accounts).map_err(|_| EscrowProgramError::HookRejected.into())
     }
 }