diff --git a/codex/purchasing/states/failed.nim b/codex/purchasing/states/failed.nim
index 1ade3e4c2..b05dbb6f1 100644
--- a/codex/purchasing/states/failed.nim
+++ b/codex/purchasing/states/failed.nim
@@ -1,5 +1,6 @@
 import pkg/metrics
 import ../statemachine
+import ../../logutils
 import ./error
 
 declareCounter(codex_purchases_failed, "codex purchases failed")
@@ -12,5 +13,9 @@ method `$`*(state: PurchaseFailed): string =
 
 method run*(state: PurchaseFailed, machine: Machine): Future[?State] {.async.} =
   codex_purchases_failed.inc()
+  let purchase = Purchase(machine)
+  warn "Request failed, withdrawing remaining funds",  requestId = purchase.requestId
+  await purchase.market.withdrawFunds(purchase.requestId)
+
   let error = newException(PurchaseError, "Purchase failed")
   return some State(PurchaseErrored(error: error))
diff --git a/codex/purchasing/states/finished.nim b/codex/purchasing/states/finished.nim
index 0f97150de..6cf5ffcc5 100644
--- a/codex/purchasing/states/finished.nim
+++ b/codex/purchasing/states/finished.nim
@@ -16,5 +16,7 @@ method `$`*(state: PurchaseFinished): string =
 method run*(state: PurchaseFinished, machine: Machine): Future[?State] {.async.} =
   codex_purchases_finished.inc()
   let purchase = Purchase(machine)
-  info "Purchase finished", requestId = purchase.requestId
+  info "Purchase finished, withdrawing remaining funds", requestId = purchase.requestId
+  await purchase.market.withdrawFunds(purchase.requestId)
+
   purchase.future.complete()
diff --git a/tests/codex/helpers/mockmarket.nim b/tests/codex/helpers/mockmarket.nim
index 497fa046f..d19f0c21a 100644
--- a/tests/codex/helpers/mockmarket.nim
+++ b/tests/codex/helpers/mockmarket.nim
@@ -269,7 +269,9 @@ method freeSlot*(market: MockMarket, slotId: SlotId) {.async.} =
 method withdrawFunds*(market: MockMarket,
                       requestId: RequestId) {.async.} =
   market.withdrawn.add(requestId)
-  market.emitRequestCancelled(requestId)
+
+  if state =? market.requestState.?[requestId] and state == RequestState.Cancelled:
+    market.emitRequestCancelled(requestId)
 
 proc setProofRequired*(mock: MockMarket, id: SlotId, required: bool) =
   if required:
diff --git a/tests/codex/testpurchasing.nim b/tests/codex/testpurchasing.nim
index 255047324..85c6e1143 100644
--- a/tests/codex/testpurchasing.nim
+++ b/tests/codex/testpurchasing.nim
@@ -230,3 +230,21 @@ checksuite "Purchasing state machine":
 
     let next = await future
     check !next of PurchaseFinished
+
+  test "withdraw funds in PurchaseFinished":
+    let request = StorageRequest.example
+    let purchase = Purchase.new(request, market, clock)
+    discard await PurchaseFinished().run(purchase)
+    check request.id in market.withdrawn
+
+  test "withdraw funds in PurchaseFailed":
+    let request = StorageRequest.example
+    let purchase = Purchase.new(request, market, clock)
+    discard await PurchaseFailed().run(purchase)
+    check request.id in market.withdrawn
+
+  test "withdraw funds in PurchaseCancelled":
+    let request = StorageRequest.example
+    let purchase = Purchase.new(request, market, clock)
+    discard await PurchaseCancelled().run(purchase)
+    check request.id in market.withdrawn
diff --git a/tests/contracts/testContracts.nim b/tests/contracts/testContracts.nim
index ba837bbd3..b098b80f4 100644
--- a/tests/contracts/testContracts.nim
+++ b/tests/contracts/testContracts.nim
@@ -17,6 +17,10 @@ ethersuite "Marketplace contracts":
   var periodicity: Periodicity
   var request: StorageRequest
   var slotId: SlotId
+  var filledAt: UInt256
+
+  proc expectedPayout(endTimestamp: UInt256): UInt256 =
+    return (endTimestamp - filledAt) * request.ask.reward
 
   proc switchAccount(account: Signer) =
     marketplace = marketplace.connect(account)
@@ -46,6 +50,7 @@ ethersuite "Marketplace contracts":
     switchAccount(host)
     discard await token.approve(marketplace.address, request.ask.collateral)
     discard await marketplace.reserveSlot(request.id, 0.u256)
+    filledAt = await ethProvider.currentTime()
     discard await marketplace.fillSlot(request.id, 0.u256, proof)
     slotId = request.slotId(0.u256)
 
@@ -87,8 +92,7 @@ ethersuite "Marketplace contracts":
     let startBalance = await token.balanceOf(address)
     discard await marketplace.freeSlot(slotId)
     let endBalance = await token.balanceOf(address)
-
-    check endBalance == (startBalance + request.ask.duration * request.ask.reward + request.ask.collateral)
+    check endBalance == (startBalance + expectedPayout(requestEnd.u256) + request.ask.collateral)
 
   test "can be paid out at the end, specifying reward and collateral recipient":
     switchAccount(host)
@@ -105,7 +109,7 @@ ethersuite "Marketplace contracts":
     let endBalanceCollateral = await token.balanceOf(collateralRecipient)
 
     check endBalanceHost == startBalanceHost
-    check endBalanceReward == (startBalanceReward + request.ask.duration * request.ask.reward)
+    check endBalanceReward == (startBalanceReward + expectedPayout(requestEnd.u256))
     check endBalanceCollateral == (startBalanceCollateral + request.ask.collateral)
 
   test "cannot mark proofs missing for cancelled request":
diff --git a/tests/contracts/testMarket.nim b/tests/contracts/testMarket.nim
index 3de71da70..66088b714 100644
--- a/tests/contracts/testMarket.nim
+++ b/tests/contracts/testMarket.nim
@@ -20,8 +20,12 @@ ethersuite "On-Chain Market":
   var slotIndex: UInt256
   var periodicity: Periodicity
   var host: Signer
+  var otherHost: Signer
   var hostRewardRecipient: Address
 
+  proc expectedPayout(r: StorageRequest, startTimestamp: UInt256, endTimestamp: UInt256): UInt256 =
+    return (endTimestamp - startTimestamp) * r.ask.reward
+
   proc switchAccount(account: Signer) =
     marketplace = marketplace.connect(account)
     token = token.connect(account)
@@ -42,6 +46,7 @@ ethersuite "On-Chain Market":
     request = StorageRequest.example
     request.client = accounts[0]
     host = ethProvider.getSigner(accounts[1])
+    otherHost = ethProvider.getSigner(accounts[3])
 
     slotIndex = (request.ask.slots div 2).u256
 
@@ -447,8 +452,11 @@ ethersuite "On-Chain Market":
 
     let address = await host.getAddress()
     switchAccount(host)
+    await market.reserveSlot(request.id, 0.u256)
+    await market.fillSlot(request.id, 0.u256, proof, request.ask.collateral)
+    let filledAt = (await ethProvider.currentTime()) - 1.u256
 
-    for slotIndex in 0..<request.ask.slots:
+    for slotIndex in 1..<request.ask.slots:
       await market.reserveSlot(request.id, slotIndex.u256)
       await market.fillSlot(request.id, slotIndex.u256, proof, request.ask.collateral)
 
@@ -456,13 +464,11 @@ ethersuite "On-Chain Market":
     await ethProvider.advanceTimeTo(requestEnd.u256 + 1)
 
     let startBalance = await token.balanceOf(address)
-
     await market.freeSlot(request.slotId(0.u256))
-
     let endBalance = await token.balanceOf(address)
-    check endBalance == (startBalance +
-                        request.ask.duration * request.ask.reward +
-                        request.ask.collateral)
+
+    let expectedPayout = request.expectedPayout(filledAt, requestEnd.u256)
+    check endBalance == (startBalance + expectedPayout + request.ask.collateral)
 
   test "pays rewards to reward recipient, collateral to host":
     market = OnChainMarket.new(marketplace, hostRewardRecipient.some)
@@ -471,7 +477,11 @@ ethersuite "On-Chain Market":
     await market.requestStorage(request)
 
     switchAccount(host)
-    for slotIndex in 0..<request.ask.slots:
+    await market.reserveSlot(request.id, 0.u256)
+    await market.fillSlot(request.id, 0.u256, proof, request.ask.collateral)
+    let filledAt = (await ethProvider.currentTime()) - 1.u256
+
+    for slotIndex in 1..<request.ask.slots:
       await market.reserveSlot(request.id, slotIndex.u256)
       await market.fillSlot(request.id, slotIndex.u256, proof, request.ask.collateral)
 
@@ -486,6 +496,6 @@ ethersuite "On-Chain Market":
     let endBalanceHost = await token.balanceOf(hostAddress)
     let endBalanceReward = await token.balanceOf(hostRewardRecipient)
 
+    let expectedPayout = request.expectedPayout(filledAt, requestEnd.u256)
     check endBalanceHost == (startBalanceHost + request.ask.collateral)
-    check endBalanceReward == (startBalanceReward +
-                               request.ask.duration * request.ask.reward)
+    check endBalanceReward == (startBalanceReward + expectedPayout)
diff --git a/tests/integration/testmarketplace.nim b/tests/integration/testmarketplace.nim
index 337d08472..1db984338 100644
--- a/tests/integration/testmarketplace.nim
+++ b/tests/integration/testmarketplace.nim
@@ -44,7 +44,7 @@ twonodessuite "Marketplace", debug1 = false, debug2 = false:
     check reservations.len == 5
     check reservations[0].requestId == purchase.requestId
 
-  test "node slots gets paid out":
+  test "node slots gets paid out and rest of tokens are returned to client":
     let size = 0xFFFFFF.u256
     let data = await RandomChunker.example(blocks = 8)
     let marketplace = Marketplace.new(Marketplace.address, ethProvider.getSigner())
@@ -55,7 +55,7 @@ twonodessuite "Marketplace", debug1 = false, debug2 = false:
     let nodes = 5'u
 
     # client 2 makes storage available
-    let startBalance = await token.balanceOf(account2)
+    let startBalanceHost = await token.balanceOf(account2)
     discard client2.postAvailability(totalSize=size, duration=20*60.u256, minPrice=300.u256, maxCollateral=300.u256).get
 
     # client 1 requests storage
@@ -74,12 +74,18 @@ twonodessuite "Marketplace", debug1 = false, debug2 = false:
     let purchase = client1.getPurchase(id).get
     check purchase.error == none string
 
+    let clientBalanceBeforeFinished = await token.balanceOf(account1)
+
     # Proving mechanism uses blockchain clock to do proving/collect/cleanup round
     # hence we must use `advanceTime` over `sleepAsync` as Hardhat does mine new blocks
     # only with new transaction
     await ethProvider.advanceTime(duration)
 
-    check eventually (await token.balanceOf(account2)) - startBalance == duration*reward*nodes.u256
+    # Checking that the hosting node received reward for at least the time between <expiry;end>
+    check eventually (await token.balanceOf(account2)) - startBalanceHost >= (duration-5*60)*reward*nodes.u256
+
+    # Checking that client node receives some funds back that were not used for the host nodes
+    check eventually (await token.balanceOf(account1)) - clientBalanceBeforeFinished > 0
 
 marketplacesuite "Marketplace payouts":
 
diff --git a/vendor/codex-contracts-eth b/vendor/codex-contracts-eth
index f5a54c7ed..997696a20 160000
--- a/vendor/codex-contracts-eth
+++ b/vendor/codex-contracts-eth
@@ -1 +1 @@
-Subproject commit f5a54c7ed4e9d562d984b02169a7e6ab2be973ba
+Subproject commit 997696a20e0976011cdbc2f0ff3a844672056ba2