--- /dev/null
+++ b/tests/src/nesting/rules-smoke.test.ts
@@ -0,0 +1,63 @@
+import {expect} from 'chai';
+import {tokenIdToAddress} from '../eth/util/helpers';
+import privateKey from '../substrate/privateKey';
+import usingApi, {executeTransaction} from '../substrate/substrate-api';
+import {createCollectionExpectSuccess, createFungibleItemExpectSuccess, createItemExpectSuccess, CrossAccountId, getCreateCollectionResult} from '../util/helpers';
+import {IKeyringPair} from '@polkadot/types/types';
+
+describe('nesting check', () => {
+  let alice!: IKeyringPair;
+  let nestTarget!: CrossAccountId;
+  before(async() => {
+    await usingApi(async api => {
+      alice = privateKey('//Alice');
+      const bob = privateKey('//Bob');
+      const events = await executeTransaction(api, alice, api.tx.unique.createCollectionEx({
+        mode: 'NFT',
+        limits: {
+          nestingRule: {OwnerRestricted: []},
+        },
+      }));
+      const collection = getCreateCollectionResult(events).collectionId;
+      const token = await createItemExpectSuccess(alice, collection, 'NFT', {Substrate: bob.address});
+      nestTarget = {Ethereum: tokenIdToAddress(collection, token)};
+    });
+  });
+  
+  it('called for fungible', async () => {
+    await usingApi(async api => {
+      const collection = await createCollectionExpectSuccess({mode: {type: 'Fungible',decimalPoints:0}});
+      await expect(executeTransaction(api, alice, api.tx.unique.createItem(collection, nestTarget, {Fungible: {Value: 1}})))
+        .to.be.rejectedWith(/^common\.SourceCollectionIsNotAllowedToNest$/);
+
+      await createFungibleItemExpectSuccess(alice, collection, {Value:1n}, {Substrate: alice.address});
+      await expect(executeTransaction(api, alice, api.tx.unique.transfer(nestTarget, collection, 0, 1n)))
+        .to.be.rejectedWith(/^common\.SourceCollectionIsNotAllowedToNest$/);
+    });
+  });
+
+  it('called for nonfungible', async () => {
+    await usingApi(async api => {
+      const collection = await createCollectionExpectSuccess({mode: {type: 'NFT'}});
+      await expect(executeTransaction(api, alice, api.tx.unique.createItem(collection, nestTarget, {NFT: {ConstData: [], VariableData: {}}})))
+        .to.be.rejectedWith(/^common\.SourceCollectionIsNotAllowedToNest$/);
+
+      const token = await createItemExpectSuccess(alice, collection, 'NFT', {Substrate: alice.address});
+      await expect(executeTransaction(api, alice, api.tx.unique.transfer(nestTarget, collection, token, 1n)))
+        .to.be.rejectedWith(/^common\.SourceCollectionIsNotAllowedToNest$/);
+    });
+  });
+
+  it('called for refungible', async () => {
+    await usingApi(async api => {
+      const collection = await createCollectionExpectSuccess({mode: {type: 'ReFungible'}});
+      await expect(executeTransaction(api, alice, api.tx.unique.createItem(collection, nestTarget, {ReFungible: {ConstData: [], VariableData: {}}})))
+        .to.be.rejectedWith(/^common\.SourceCollectionIsNotAllowedToNest$/);
+
+      const token = await createItemExpectSuccess(alice, collection, 'ReFungible', {Substrate: alice.address});
+      await expect(executeTransaction(api, alice, api.tx.unique.transfer(nestTarget, collection, token, 1n)))
+        .to.be.rejectedWith(/^common\.SourceCollectionIsNotAllowedToNest$/);
+    });
+  });
+});
+  
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