diff --git a/__tests__/utils/address.test.ts b/__tests__/utils/address.test.ts
index 69687fdab..b3c346f37 100644
--- a/__tests__/utils/address.test.ts
+++ b/__tests__/utils/address.test.ts
@@ -1,3 +1,4 @@
+import { constants, num } from '../../src';
 import {
   addAddressPadding,
   getChecksumAddress,
@@ -17,6 +18,11 @@ describe('validateAndParseAddress', () => {
 
     return expect(validateAndParseAddress(addr)).toEqual(`${addAddressPadding(addr)}`);
   });
+
+  test('should fail for out of bound address', () => {
+    const addr = num.toHex(constants.ADDR_BOUND + 1n);
+    expect(() => validateAndParseAddress(addr)).toThrow(/^Message not signable/);
+  });
 });
 
 describe('address checksums', () => {
diff --git a/__tests__/utils/utils.test.ts b/__tests__/utils/utils.test.ts
index e41e8375b..f0019a405 100644
--- a/__tests__/utils/utils.test.ts
+++ b/__tests__/utils/utils.test.ts
@@ -1,3 +1,5 @@
+import * as starkCurve from '@scure/starknet';
+
 import { constants, ec, hash, num, stark } from '../../src';
 import { Block } from '../../src/provider/utils';
 
@@ -78,18 +80,15 @@ describe('estimatedFeeToMaxFee()', () => {
 });
 
 describe('calculateContractAddressFromHash()', () => {
-  // This test just show how to use calculateContractAddressFromHash for new devs
-
+  const ethAddress = '0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7';
+  const daiAddress = '0x03e85bfbb8e2a42b7bead9e88e9a1b19dbccf661471061807292120462396ec9';
+  const factoryAddress = '0x249827618A01858A72B7D04339C47195A324D20D6037033DFE2829F98AFF4FC';
+  const classHash = '0x55187E68C60664A947048E0C9E5322F9BF55F7D435ECDCF17ED75724E77368F';
+  // Any type of salt can be used. It depends on the dApp what kind of salt it wants to use.
+  const salt = ec.starkCurve.pedersen(ethAddress, daiAddress);
+
+  // This test just shows how to use calculateContractAddressFromHash for new devs
   test('calculated contract address should match the snapshot', () => {
-    const ethAddress = '0x049d36570d4e46f48e99674bd3fcc84644ddd6b96f7c741b1562b82f9e004dc7';
-
-    const daiAddress = '0x03e85bfbb8e2a42b7bead9e88e9a1b19dbccf661471061807292120462396ec9';
-    const factoryAddress = '0x249827618A01858A72B7D04339C47195A324D20D6037033DFE2829F98AFF4FC';
-    const classHash = '0x55187E68C60664A947048E0C9E5322F9BF55F7D435ECDCF17ED75724E77368F';
-
-    // Any type of salt can be used. It depends on the dApp what kind of salt it wants to use.
-    const salt = ec.starkCurve.pedersen(ethAddress, daiAddress);
-
     const res = hash.calculateContractAddressFromHash(
       salt,
       classHash,
@@ -101,6 +100,20 @@ describe('calculateContractAddressFromHash()', () => {
       `"0x36dc8dcb3440596472ddde11facacc45d0cd250df764ae7c3d1a360c853c324"`
     );
   });
+
+  test('output should be bound', () => {
+    const starkCurveSpy = jest.spyOn(starkCurve, 'pedersen');
+    starkCurveSpy.mockReturnValue(num.toHex(constants.ADDR_BOUND + 1n));
+    const res = hash.calculateContractAddressFromHash(
+      salt,
+      classHash,
+      [ethAddress, daiAddress, factoryAddress],
+      factoryAddress
+    );
+    expect(starkCurveSpy).toHaveBeenCalled();
+    expect(BigInt(res)).toBeLessThan(constants.ADDR_BOUND);
+    starkCurveSpy.mockRestore();
+  });
 });
 
 describe('new Block()', () => {
diff --git a/src/constants.ts b/src/constants.ts
index 60a9303b1..d90b97a73 100644
--- a/src/constants.ts
+++ b/src/constants.ts
@@ -14,9 +14,12 @@ export const BN_FEE_TRANSACTION_VERSION_2 = 2n ** 128n + BN_TRANSACTION_VERSION_
 
 export const ZERO = 0n;
 export const MASK_250 = 2n ** 250n - 1n; // 2 ** 250 - 1
-export const MASK_251 = 2n ** 251n;
 export const API_VERSION = ZERO;
 
+// based on: https://github.com/starkware-libs/cairo-lang/blob/v0.12.3/src/starkware/starknet/common/storage.cairo#L3
+export const MAX_STORAGE_ITEM_SIZE = 256n;
+export const ADDR_BOUND = 2n ** 251n - MAX_STORAGE_ITEM_SIZE;
+
 export enum BaseUrl {
   SN_MAIN = 'https://alpha-mainnet.starknet.io',
   SN_GOERLI = 'https://alpha4.starknet.io',
diff --git a/src/utils/address.ts b/src/utils/address.ts
index 310bbfae0..e0647df86 100644
--- a/src/utils/address.ts
+++ b/src/utils/address.ts
@@ -1,7 +1,7 @@
 /* eslint-disable no-bitwise */
 import { hexToBytes } from '@noble/curves/abstract/utils';
 
-import { MASK_251, ZERO } from '../constants';
+import { ADDR_BOUND, ZERO } from '../constants';
 import { BigNumberish } from '../types';
 import { addHexPrefix, removeHexPrefix } from './encode';
 import { keccakBn } from './hash';
@@ -12,7 +12,7 @@ export function addAddressPadding(address: BigNumberish): string {
 }
 
 export function validateAndParseAddress(address: BigNumberish): string {
-  assertInRange(address, ZERO, MASK_251, 'Starknet Address');
+  assertInRange(address, ZERO, ADDR_BOUND - 1n, 'Starknet Address');
 
   const result = addAddressPadding(address);
 
diff --git a/src/utils/hash.ts b/src/utils/hash.ts
index 205a37599..3c8268d2c 100644
--- a/src/utils/hash.ts
+++ b/src/utils/hash.ts
@@ -3,6 +3,7 @@
 import { poseidonHashMany } from '@scure/starknet';
 
 import {
+  ADDR_BOUND,
   API_VERSION,
   BN_FEE_TRANSACTION_VERSION_1,
   BN_FEE_TRANSACTION_VERSION_2,
@@ -205,13 +206,14 @@ export function calculateContractAddressFromHash(
 
   const CONTRACT_ADDRESS_PREFIX = felt('0x535441524b4e45545f434f4e54524143545f41444452455353'); // Equivalent to 'STARKNET_CONTRACT_ADDRESS'
 
-  return computeHashOnElements([
+  const hash = computeHashOnElements([
     CONTRACT_ADDRESS_PREFIX,
     deployerAddress,
     salt,
     classHash,
     constructorCalldataHash,
   ]);
+  return toHex(BigInt(hash) % ADDR_BOUND);
 }
 
 function nullSkipReplacer(key: string, value: any) {