diff --git a/public/views/walletHome.html b/public/views/walletHome.html
index 721025c0b..021edbb5e 100644
--- a/public/views/walletHome.html
+++ b/public/views/walletHome.html
@@ -115,6 +115,15 @@
         </div>
       </div> <!-- oh -->
 
+      <div class="oh pr m20t" ng-show="index.incorrectDerivation">
+        <div class="text-center text-warning">
+          <i class="fi-alert"></i>
+          <span translate>
+            WARNING: Key derivation is not working on this device/wallet. Actions cannot be performed on this wallet.
+          </span>
+        </div>
+ 
+      </div>
 
       <div class="oh pr m20t" ng-show="index.notAuthorized && ! index.anyOnGoingProcess">
         <div class="text-center text-warning">
diff --git a/src/js/controllers/index.js b/src/js/controllers/index.js
index 177aa4a21..66e543410 100644
--- a/src/js/controllers/index.js
+++ b/src/js/controllers/index.js
@@ -136,6 +136,7 @@ angular.module('copayApp.controllers').controller('indexController', function($r
       self.isPrivKeyEncrypted = fc.isPrivKeyEncrypted();
       self.externalSource = fc.getPrivKeyExternalSourceName();
       self.account = fc.credentials.account;
+      self.incorrectDerivation = fc.incorrectDerivation;
 
       if (self.externalSource == 'trezor')
         self.account++;
diff --git a/src/js/services/profileService.js b/src/js/services/profileService.js
index a9a07da19..c7463da2b 100644
--- a/src/js/services/profileService.js
+++ b/src/js/services/profileService.js
@@ -75,9 +75,14 @@ angular.module('copayApp.services')
 
       var client = bwcService.getClient(JSON.stringify(credentials));
       root.walletClients[credentials.walletId] = client;
+
+      if (client.incorrectDerivation) {
+        storageService.clearLastAddress(credentials.walletId,function() {});
+      }
+
       client.removeAllListeners();
       client.on('report', function(n) {
-         $log.info('BWC Report:'+ n);
+        $log.info('BWC Report:' + n);
       });
 
       client.on('notification', function(n) {
@@ -319,8 +324,8 @@ angular.module('copayApp.services')
 
         // check if exist
         if (lodash.find(root.profile.credentials, {
-            'walletId': walletData.walletId
-          })) {
+          'walletId': walletData.walletId
+        })) {
           return cb(gettext('Cannot join the same wallet more that once'));
         }
       } catch (ex) {