diff --git a/Cargo.lock b/Cargo.lock
index 560a4edfb2..f81e6f5f8a 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -326,6 +326,7 @@ dependencies = [
  "primitives",
  "scale-info",
  "serde",
+ "smallvec",
  "sp-api",
  "sp-block-builder",
  "sp-consensus-aura",
diff --git a/bin/node/src/main.rs b/bin/node/src/main.rs
index 3572ffe641..77ac1e6edf 100644
--- a/bin/node/src/main.rs
+++ b/bin/node/src/main.rs
@@ -1,6 +1,7 @@
 #[cfg(feature = "try-runtime")]
 use aleph_node::ExecutorDispatch;
 use aleph_node::{new_authority, new_full, new_partial, Cli, Subcommand};
+use aleph_primitives::HEAP_PAGES;
 #[cfg(feature = "try-runtime")]
 use aleph_runtime::Block;
 use log::warn;
@@ -16,8 +17,6 @@ fn default_blocks_pruning() -> DatabasePruningMode {
     DatabasePruningMode::ArchiveCanonical
 }
 
-const HEAP_PAGES: u64 = 4096;
-
 fn pruning_changed(params: &PruningParams) -> bool {
     let state_pruning_changed = params.state_pruning != default_state_pruning();
 
@@ -26,8 +25,6 @@ fn pruning_changed(params: &PruningParams) -> bool {
     state_pruning_changed || blocks_pruning_changed
 }
 
-// The default number of heap pages in substrate is 2048. Every heap page is 64KB,
-// so value of 4096 gives 256MB memory for entire runtime.
 fn enforce_heap_pages(config: &mut Configuration) {
     config.default_heap_pages = Some(HEAP_PAGES);
 }
diff --git a/bin/runtime/Cargo.toml b/bin/runtime/Cargo.toml
index c4d070011c..acfc86bc12 100644
--- a/bin/runtime/Cargo.toml
+++ b/bin/runtime/Cargo.toml
@@ -64,6 +64,9 @@ pallet-elections = { path = "../../pallets/elections", default-features = false
 [build-dependencies]
 substrate-wasm-builder = { git = "https://github.com/Cardinal-Cryptography/substrate.git", branch = "aleph-v0.9.36" }
 
+[dev-dependencies]
+smallvec = { version = "1", default-features = false}
+
 [features]
 default = ["std"]
 std = [
diff --git a/bin/runtime/src/lib.rs b/bin/runtime/src/lib.rs
index 44ec9307c4..54c5ebf2c5 100644
--- a/bin/runtime/src/lib.rs
+++ b/bin/runtime/src/lib.rs
@@ -1017,10 +1017,38 @@ impl_runtime_apis! {
 
 #[cfg(test)]
 mod tests {
-    use crate::VERSION;
+    use frame_support::traits::Get;
+    use primitives::HEAP_PAGES;
+    use smallvec::Array;
+
+    use super::*;
 
     #[test]
     fn state_version_must_be_zero() {
         assert_eq!(0, VERSION.state_version);
     }
+
+    #[test]
+    fn check_contracts_memory_parameters() {
+        // Memory limit of one instance of a runtime
+        const MAX_RUNTIME_MEM: u32 = HEAP_PAGES as u32 * 64 * 1024;
+        // Max stack size defined by wasmi - 1MB
+        const MAX_STACK_SIZE: u32 = 1024 * 1024;
+        // Max heap size is 16 mempages of 64KB each - 1MB
+        let max_heap_size = <Runtime as pallet_contracts::Config>::Schedule::get()
+            .limits
+            .max_memory_size();
+        // Max call depth is CallStack::size() + 1
+        let max_call_depth = <Runtime as pallet_contracts::Config>::CallStack::size() as u32 + 1;
+        // Max code len
+        let max_code_len: u32 = <Runtime as pallet_contracts::Config>::MaxCodeLen::get();
+
+        // The factor comes from allocator, contracts representation, and wasmi
+        let lhs = max_call_depth * (72 * max_code_len + max_heap_size + MAX_STACK_SIZE);
+        // We allocate only 75% of all runtime memory to contracts execution. Important: it's not
+        // enforeced in wasmtime
+        let rhs = MAX_RUNTIME_MEM * 3 / 4;
+
+        assert!(lhs < rhs);
+    }
 }
diff --git a/primitives/src/lib.rs b/primitives/src/lib.rs
index 554677fffb..48a94559f8 100644
--- a/primitives/src/lib.rs
+++ b/primitives/src/lib.rs
@@ -38,6 +38,9 @@ pub type BlockNumber = u32;
 pub type SessionCount = u32;
 pub type BlockCount = u32;
 
+// Default number of heap pages that gives limit of 256MB for a runtime instance since each page is 64KB
+pub const HEAP_PAGES: u64 = 4096;
+
 pub const MILLISECS_PER_BLOCK: u64 = 1000;
 // We agreed to 5MB as the block size limit.
 pub const MAX_BLOCK_SIZE: u32 = 5 * 1024 * 1024;