diff --git a/contracts/Portfolio.sol b/contracts/Portfolio.sol
index 7b4ca735..09e4b425 100644
--- a/contracts/Portfolio.sol
+++ b/contracts/Portfolio.sol
@@ -596,7 +596,7 @@ abstract contract PortfolioVirtual is Objective {
      * @param controller An address that can change the `fee`, `priorityFee`, and `jit` parameters of the created pool.
      * @param priorityFee Priority fee for the pool (10,000 being 100%). This is a percentage of fees paid by the controller when swapping.
      * @param fee Fee for the pool (10,000 being 100%). This is a percentage of fees paid by the users when swapping.
-     * @param volatility Expected volatility of the pool.
+     * @param volatility Expected volatility of the pool in basis points, minimum of 1 (0.01%) and maximum of 25,000 (250%).
      * @param duration Quantity of days (in units of days) until the pool "expires". Uses `type(uint16).max` as a magic variable to set `perpetual = true`.
      * @param jit Just In Time policy (expressed in seconds).
      * @param maxPrice Terminal price of the pool once maturity is reached (expressed in the quote token), in WAD units.
diff --git a/contracts/PortfolioLib.sol b/contracts/PortfolioLib.sol
index a986e67c..b63c0171 100644
--- a/contracts/PortfolioLib.sol
+++ b/contracts/PortfolioLib.sol
@@ -42,7 +42,7 @@ uint256 constant MIN_MAX_PRICE = 1;
 uint256 constant MAX_MAX_PRICE = type(uint128).max;
 uint256 constant MIN_FEE = 1; // 0.01%
 uint256 constant MAX_FEE = 1000; // 10%
-uint256 constant MIN_VOLATILITY = 100; // 1%
+uint256 constant MIN_VOLATILITY = 1; // 0.01%
 uint256 constant MAX_VOLATILITY = 25_000; // 250%
 uint256 constant MIN_DURATION = 1; // days, but without units
 uint256 constant MAX_DURATION = 500; // days, but without units