diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/Command.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/Command.kt
index e2a8f08..a6faee0 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/Command.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/Command.kt
@@ -31,7 +31,8 @@ class Command<A, R>(
     suspend fun exec(packedArgs: UByteArray, handler: suspend (A) -> R): UByteArray =
         BipackEncoder.encode(
             resultSerializer,
-            handler(BipackDecoder.decode(packedArgs.toDataSource(), argsSerializer))
+            handler(
+                BipackDecoder.decode(packedArgs.toDataSource(), argsSerializer))
         ).toUByteArray()
 
     companion object {
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloClient.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloClient.kt
index 362d174..680734f 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloClient.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloClient.kt
@@ -56,6 +56,7 @@ class KiloClient<S>(
                     delay(1000)
                 } catch (_: CancellationException) {
                     debug { "cancelled" }
+                    break
                 } catch (t: Throwable) {
                     exception { "unexpected exception" to t }
                     delay(1000)
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloL0Interface.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloL0Interface.kt
index 6eaa7ad..a787a17 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloL0Interface.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloL0Interface.kt
@@ -1,8 +1,15 @@
 package net.sergeych.kiloparsec
 
 import kotlinx.coroutines.CompletableDeferred
+import net.sergeych.mp_logger.LogTag
+import net.sergeych.mp_logger.Loggable
+import net.sergeych.mp_logger.debug
+import net.sergeych.mp_logger.info
+import net.sergeych.tools.AtomicCounter
 import net.sergeych.utools.pack
 
+private val idCounter = AtomicCounter(0)
+
 /**
  * This class is not normally used directly. This is a local interface that supports
  * secure transport command layer (encrypted calls/results) to work with [KiloRemoteInterface].
@@ -12,7 +19,7 @@ import net.sergeych.utools.pack
 internal class KiloL0Interface<T>(
     private val clientInterface: LocalInterface<KiloScope<T>>,
     private val deferredParams: CompletableDeferred<KiloParams<T>>,
-): LocalInterface<Unit>() {
+) : LocalInterface<Unit>(), Loggable by LogTag("KL0:${idCounter.incrementAndGet()}") {
     init {
         // local interface uses the same session as a client:
         addErrorProvider(clientInterface)
@@ -27,7 +34,10 @@ internal class KiloL0Interface<T>(
                     0u,
                     clientInterface.execute(params.scope, call.name, call.serializedArgs)
                 )
-            } catch (t: Throwable) {
+            } catch(t: RemoteInterface.ClosedException) {
+                throw t
+            }
+            catch (t: Throwable) {
                 clientInterface.encodeError(0u, t)
             }
             params.encrypt(pack(result))
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloParams.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloParams.kt
index 9c83885..f3650a1 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloParams.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloParams.kt
@@ -36,7 +36,7 @@ data class KiloParams<S>(
     val sessionKeyPair: KeyExchangeSessionKeyPair,
     val scopeSession: S,
     val remoteIdentity: SigningKey.Public?,
-    val remoteTransport: RemoteInterface
+    val remoteTransport: RemoteInterface,
 ) {
     @Serializable
     data class Package(
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServer.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServer.kt
index 51f76e3..c9e10ee 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServer.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServer.kt
@@ -32,6 +32,9 @@ class KiloServer<S>(
                 }
                 catch(_: CancellationException) {
                 }
+                catch(_: RemoteInterface.ClosedException) {
+                    info { "Closed exception caught, closing" }
+                }
                 catch (t: Throwable) {
                     exception { "unexpected while creating kiloclient" to t }
                 }
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServerConnection.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServerConnection.kt
index 6a664d9..43ff703 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServerConnection.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/KiloServerConnection.kt
@@ -59,7 +59,6 @@ class KiloServerConnection<S>(
                     null,
                     this@KiloServerConnection
                 )
-
                 Handshake(1u, pair.publicKey, serverSigningKey?.seal(params!!.token))
             }
 
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/LocalInterface.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/LocalInterface.kt
index f126c49..cc15c8e 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/LocalInterface.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/LocalInterface.kt
@@ -1,11 +1,17 @@
 package net.sergeych.kiloparsec
 
+import net.sergeych.mp_logger.LogTag
+import net.sergeych.mp_logger.Loggable
+import net.sergeych.mp_logger.info
+import net.sergeych.tools.AtomicCounter
 import net.sergeych.utools.firstNonNull
 import kotlin.reflect.KClass
 
 private typealias RawCommandHandler<C> = suspend (C, UByteArray) -> UByteArray
 
-open class LocalInterface<S> {
+private val idCounter = AtomicCounter()
+
+open class LocalInterface<S>: Loggable by LogTag("LocalInterface${idCounter.incrementAndGet()}") {
 
     private val commands = mutableMapOf<String, RawCommandHandler<S>>()
 
@@ -72,14 +78,16 @@ open class LocalInterface<S> {
 
     fun encodeError(forId: UInt, t: Throwable): Transport.Block.Error =
         getErrorCode(t)?.let { Transport.Block.Error(forId, it, t.message) }
-            ?: Transport.Block.Error(forId, "UnknownError", t.message)
+            ?: Transport.Block.Error(forId, "UnknownError", "${t::class.simpleName}: ${t.message}")
 
     open fun getErrorBuilder(code: String): ((String, UByteArray?) -> Throwable)? =
         errorBuilder[code] ?: errorProviders.firstNonNull { it.getErrorBuilder(code) }
 
     fun decodeError(tbe: Transport.Block.Error): Throwable =
         getErrorBuilder(tbe.code)?.invoke(tbe.message, tbe.extra)
-            ?: RemoteInterface.RemoteException(tbe)
+            ?: RemoteInterface.RemoteException(tbe).also {
+                info { "can't decode error ${tbe.code}: ${tbe.message}" }
+            }
 
     fun decodeAndThrow(tbe: Transport.Block.Error): Nothing {
         throw decodeError(tbe)
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/Transport.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/Transport.kt
index dd1c561..ffbe974 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/Transport.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/Transport.kt
@@ -1,6 +1,8 @@
 package net.sergeych.kiloparsec
 
 import kotlinx.coroutines.*
+import kotlinx.coroutines.channels.ClosedReceiveChannelException
+import kotlinx.coroutines.channels.ClosedSendChannelException
 import kotlinx.coroutines.channels.ReceiveChannel
 import kotlinx.coroutines.channels.SendChannel
 import kotlinx.coroutines.sync.Mutex
@@ -147,6 +149,12 @@ class Transport<S>(
             debug { "awaiting incoming blocks" }
             while (isActive && !isClosed) {
                 try {
+                    debug { "input step starting closed=$isClosed active=$isActive"}
+                    if( isClosed ) {
+                        info { "breaking transort loop on closed"}
+                        break
+                    }
+
                     device.input.receive().let { packed ->
                         debug { "<<<\n${packed.toDump()}" }
                         val b = unpack<Block>(packed)
@@ -178,9 +186,11 @@ class Transport<S>(
                                         )
                                     )
                                 } catch (x: RemoteInterface.ClosedException) {
-                                    // strange case: handler throws closed?
-                                    error { "not supported: command handler for $b has thrown ClosedException" }
-                                    send(Block.Error(b.id, "UnexpectedException", x.message))
+                                    // handler forced close
+                                    warning { "handler requested closing of the connection"}
+                                    isClosed = true
+                                    runCatching { device.close() }
+                                    throw x
                                 } catch (x: RemoteInterface.RemoteException) {
                                     send(Block.Error(b.id, x.code, x.text, x.extra))
                                 } catch (t: Throwable) {
@@ -189,19 +199,34 @@ class Transport<S>(
                                     .also { debug { "command executed: ${b.name}" } }
                             }
                         }
+                        debug { "=---------------------------------------------"}
                     }
-                } catch (_: CancellationException) {
+                    debug { "input step performed closed=$isClosed active=$isActive"}
+                } catch (_: ClosedSendChannelException) {
+                    info { "closed send channel" }
+                    isClosed = true
+                } catch (_: ClosedReceiveChannelException) {
+                    info { "closed receive channel"}
+                    isClosed = true
+                }
+                catch (_: CancellationException) {
                     info { "loop is cancelled" }
                     isClosed = true
+                } catch( _: RemoteInterface.ClosedException) {
+                    debug { "git closed exception here, ignoring" }
+                    isClosed = true
                 } catch (t: Throwable) {
                     exception { "channel closed on error" to t }
                     info { "isa? $isActive / $isClosed" }
-                    runCatching { device.close() }
                     isClosed = true
                 }
             }
+            debug { "leaving transport loop" }
             access.withLock {
+                debug { "access lock obtained"}
                 isClosed = true
+                debug { "closgin device $device" }
+                runCatching { device.close() }
                 for (c in calls.values) c.completeExceptionally(RemoteInterface.ClosedException())
                 calls.clear()
             }
@@ -211,7 +236,12 @@ class Transport<S>(
     }
 
     private suspend fun send(block: Block) {
-        device.output.send(pack(block))
+        try {
+            device.output.send(pack(block))
+        }
+        catch(_: ClosedSendChannelException) {
+            throw RemoteInterface.ClosedException()
+        }
     }
 
 }
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/ProxyDevice.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/ProxyDevice.kt
index 5ffd8d3..00264c7 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/ProxyDevice.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/ProxyDevice.kt
@@ -3,6 +3,7 @@ package net.sergeych.kiloparsec.adapter
 import kotlinx.coroutines.channels.Channel
 import kotlinx.coroutines.channels.ReceiveChannel
 import kotlinx.coroutines.channels.SendChannel
+import net.sergeych.kiloparsec.RemoteInterface
 import net.sergeych.kiloparsec.Transport
 import net.sergeych.tools.AtomicCounter
 
@@ -10,7 +11,7 @@ private val counter = AtomicCounter()
 open class ProxyDevice(
     inputChannel: Channel<UByteArray>,
     outputChannel: Channel<UByteArray>,
-    private val onClose: suspend ()->Unit = {}): Transport.Device {
+    private val onClose: suspend ()->Unit = { throw RemoteInterface.ClosedException() }): Transport.Device {
 
     override val input: ReceiveChannel<UByteArray> = inputChannel
     override val output: SendChannel<UByteArray> = outputChannel
diff --git a/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/websocketClient.kt b/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/websocketClient.kt
index 83f3083..898b2ed 100644
--- a/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/websocketClient.kt
+++ b/src/commonMain/kotlin/net/sergeych/kiloparsec/adapter/websocketClient.kt
@@ -7,8 +7,12 @@ import io.ktor.websocket.*
 import kotlinx.coroutines.CancellationException
 import kotlinx.coroutines.cancel
 import kotlinx.coroutines.channels.Channel
+import kotlinx.coroutines.channels.ClosedReceiveChannelException
+import kotlinx.coroutines.channels.ClosedSendChannelException
+import kotlinx.coroutines.channels.ReceiveChannel
 import kotlinx.coroutines.launch
 import net.sergeych.crypto2.SigningKey
+import net.sergeych.crypto2.toDump
 import net.sergeych.kiloparsec.KiloClient
 import net.sergeych.kiloparsec.KiloConnectionData
 import net.sergeych.kiloparsec.KiloInterface
@@ -21,7 +25,7 @@ import net.sergeych.tools.AtomicCounter
 
 private val counter = AtomicCounter()
 
-fun <S>websocketClient(
+fun <S> websocketClient(
     path: String,
     clientInterface: KiloInterface<S> = KiloInterface(),
     client: HttpClient = HttpClient { install(WebSockets) },
@@ -48,36 +52,42 @@ fun <S>websocketClient(
                 url.port = u.port
                 url.encodedPath = u.encodedPath
                 url.parameters.appendAll(u.parameters)
-                    log.info { "kiloparsec server URL: $url" }
+                log.info { "kiloparsec server URL: $url" }
             }) {
                 try {
                     log.info { "connected to the server" }
                     println("SENDING!!!")
                     send("Helluva")
                     launch {
-                        for (block in output) {
-                            send(block.toByteArray())
+                        try {
+                            for (block in output) {
+                                send(block.toByteArray())
+                            }
+                            log.info { "input is closed, closing the websocket" }
+                        } catch (_: ClosedSendChannelException) {
+                            log.info { "send channel closed" }
                         }
-                        log.info { "input is closed, closing the websocket" }
                         cancel()
                     }
                     for (f in incoming) {
                         if (f is Frame.Binary) {
-                            input.send(f.readBytes().toUByteArray())
+                            input.send(f.readBytes().toUByteArray().also {
+                                println("incoming\n${it.toDump()}")
+                            })
                         } else {
                             log.warning { "ignoring unexpected frame of type ${f.frameType}" }
                         }
                     }
-                }
-                catch(_:CancellationException) {
-                }
-                catch(t: Throwable) {
+                } catch (_: CancellationException) {
+                } catch( _: ClosedReceiveChannelException) {
+                    log.warning { "receive channel closed unexpectedly" }
+                } catch (t: Throwable) {
                     log.exception { "unexpected error" to t }
                 }
                 log.info { "closing connection" }
             }
         }
-        val device = ProxyDevice(input,output) {
+        val device = ProxyDevice(input, output) {
             input.close()
             // we need to explicitly close the coroutine job, or it can hang for a long time
             // leaking resources.
diff --git a/src/commonTest/kotlin/assertThrows.kt b/src/commonTest/kotlin/assertThrows.kt
index dc63eeb..3e2d4f1 100644
--- a/src/commonTest/kotlin/assertThrows.kt
+++ b/src/commonTest/kotlin/assertThrows.kt
@@ -8,6 +8,7 @@ inline fun <reified T: Throwable>assertThrows(f: ()->Unit): T {
     }
     catch(x: Throwable) {
         if( x is T ) return x
-        fail("expected to throw $name but instead threw ${x::class.simpleName}: $x")
+        println("expected to throw $name but instead threw ${x::class.simpleName}: $x\b\n${x.stackTraceToString()}")
+        fail("expected to throw $name but instead threw ${x::class.simpleName}: $x\b\n${x.stackTraceToString()}")
     }
 }
\ No newline at end of file
diff --git a/src/jvmMain/kotlin/net/sergeych/kiloparsec/adapter/WebsocketServer.kt b/src/jvmMain/kotlin/net/sergeych/kiloparsec/adapter/WebsocketServer.kt
index 50b9be6..fb21c66 100644
--- a/src/jvmMain/kotlin/net/sergeych/kiloparsec/adapter/WebsocketServer.kt
+++ b/src/jvmMain/kotlin/net/sergeych/kiloparsec/adapter/WebsocketServer.kt
@@ -6,15 +6,16 @@ import io.ktor.server.websocket.*
 import io.ktor.websocket.*
 import kotlinx.coroutines.cancel
 import kotlinx.coroutines.channels.Channel
+import kotlinx.coroutines.channels.ClosedReceiveChannelException
+import kotlinx.coroutines.channels.ClosedSendChannelException
 import kotlinx.coroutines.isActive
 import kotlinx.coroutines.launch
 import net.sergeych.crypto2.SigningKey
 import net.sergeych.crypto2.toDump
 import net.sergeych.kiloparsec.KiloInterface
 import net.sergeych.kiloparsec.KiloServerConnection
-import net.sergeych.mp_logger.LogTag
-import net.sergeych.mp_logger.debug
-import net.sergeych.mp_logger.warning
+import net.sergeych.kiloparsec.RemoteInterface
+import net.sergeych.mp_logger.*
 import net.sergeych.tools.AtomicCounter
 import java.time.Duration
 
@@ -49,23 +50,36 @@ fun <S> Application.setupWebsocketServer(
             }
             val server = KiloServerConnection(
                 localInterface,
-                ProxyDevice(input, output) { input.close() },
+                ProxyDevice(input, output),
                 createSession(),
                 serverKey
             )
             launch { server.run() }
             log.debug { "KSC started, looking for incoming frames" }
-            for( f in incoming) {
+            for (f in incoming) {
                 log.debug { "incoming frame: ${f.frameType}" }
                 if (f is Frame.Binary)
-                    input.send(f.readBytes().toUByteArray().also {
-                        log.debug { "in frame\n${it.toDump()}" }
-                    })
+                    try {
+                        input.send(f.readBytes().toUByteArray().also {
+                            log.debug { "in frame\n${it.toDump()}" }
+                        })
+                    } catch (_: RemoteInterface.ClosedException) {
+                        log.info { "caught local closed exception, closing" }
+                        break
+                    } catch (_: ClosedReceiveChannelException) {
+                        log.info { "receive channel is closed, closing connection" }
+                        break
+                    } catch (t: Throwable) {
+                        log.exception { "unexpected exception, server connection will close" to t }
+                        break
+                    }
                 else
                     log.warning { "unknown frame type ${f.frameType}, ignoring" }
             }
             log.debug { "closing the server" }
+            println("****************prec")
             cancel()
+            println("****************postc")
         }
     }
 }
diff --git a/src/jvmTest/kotlin/net/sergeych/kiloparsec/ClientTest.kt b/src/jvmTest/kotlin/net/sergeych/kiloparsec/ClientTest.kt
index 3684c2d..d7e3426 100644
--- a/src/jvmTest/kotlin/net/sergeych/kiloparsec/ClientTest.kt
+++ b/src/jvmTest/kotlin/net/sergeych/kiloparsec/ClientTest.kt
@@ -1,7 +1,11 @@
 package net.sergeych.kiloparsec
 
+import assertThrows
 import io.ktor.server.engine.*
 import io.ktor.server.netty.*
+import kotlinx.coroutines.delay
+import kotlinx.coroutines.flow.take
+import kotlinx.coroutines.launch
 import kotlinx.coroutines.test.runTest
 import net.sergeych.crypto2.initCrypto
 import net.sergeych.kiloparsec.adapter.acceptTcpDevice
@@ -10,9 +14,7 @@ import net.sergeych.kiloparsec.adapter.setupWebsocketServer
 import net.sergeych.kiloparsec.adapter.websocketClient
 import net.sergeych.mp_logger.Log
 import java.net.InetAddress
-import kotlin.test.Test
-import kotlin.test.assertEquals
-import kotlin.test.assertTrue
+import kotlin.test.*
 
 class ClientTest {
 
@@ -57,6 +59,7 @@ class ClientTest {
     fun webSocketTest() = runTest {
         initCrypto()
 //        fun Application.
+        val cmdClose by command<Unit,Unit>()
         val cmdGetFoo by command<Unit,String>()
         val cmdSetFoo by command<String,Unit>()
         val cmdCheckConnected by command<Unit,Boolean>()
@@ -64,12 +67,23 @@ class ClientTest {
         Log.connectConsole(Log.Level.DEBUG)
 
         data class Session(var foo: String="not set")
+        var closeCounter = 0
         val serverInterface = KiloInterface<Session>().apply {
             var connectedCalled = false
             onConnected { connectedCalled = true }
             on(cmdGetFoo) { session.foo }
             on(cmdSetFoo) { session.foo = it }
             on(cmdCheckConnected) { connectedCalled }
+            on(cmdClose) {
+                throw RemoteInterface.ClosedException()
+//                if( closeCounter < 2 ) {
+//                    println("-------------------------- call close!")
+//                    throw RemoteInterface.ClosedException()
+//                }
+//                else {
+//                    println("close counter $closeCounter, ignoring")
+//                }
+            }
         }
 //       val server = setupWebsoketServer()
         val ns: NettyApplicationEngine = embeddedServer(Netty, port = 8080, host = "0.0.0.0", module = {
@@ -77,6 +91,14 @@ class ClientTest {
         }).start(wait = false)
 
         val client = websocketClient<Unit>("ws://localhost:8080/kp")
+        val states = mutableListOf<Boolean>()
+        val collector = launch {
+            client.state.collect {
+                println("got: $closeCounter/$it")
+                states += it
+                if( !it) { closeCounter++ }
+            }
+        }
         println(1)
         assertEquals(true, client.call(cmdCheckConnected))
         assertTrue { client.state.value }
@@ -87,9 +109,16 @@ class ClientTest {
         println(4)
         assertEquals("foo", client.call(cmdGetFoo))
         println(5)
-
+        assertThrows<RemoteInterface.ClosedException> {
+            client.call(cmdClose)
+        }
+        println("0------------------------------------------------------------------------------connection should be closed")
+//        assertFalse { client.state.value }
+//        assertEquals("foo", client.call(cmdGetFoo))
         client.close()
         ns.stop()
+        collector.cancel()
+        println("----= states: $states")
         println("stopped server")
         println("closed client")
     }