diff --git a/xgress/messages.go b/xgress/messages.go
index dcd997d9..71e5eb2d 100644
--- a/xgress/messages.go
+++ b/xgress/messages.go
@@ -19,12 +19,13 @@ package xgress
 import (
 	"encoding/binary"
 	"fmt"
+	"math"
+
 	"github.com/openziti/channel/v4"
 	"github.com/openziti/foundation/v2/info"
 	"github.com/openziti/foundation/v2/uuidz"
 	"github.com/pkg/errors"
 	"github.com/sirupsen/logrus"
-	"math"
 )
 
 const (
@@ -82,6 +83,10 @@ const (
 	PayloadFlagWriteFailed  Flag = 64
 )
 
+const (
+	HeaderKeyCapabilities uint8 = 1
+)
+
 func NewAcknowledgement(circuitId string, originator Originator) *Acknowledgement {
 	return &Acknowledgement{
 		CircuitId: circuitId,
diff --git a/xgress/xgress.go b/xgress/xgress.go
index 4d673729..706d6e19 100644
--- a/xgress/xgress.go
+++ b/xgress/xgress.go
@@ -48,6 +48,11 @@ const (
 	endOfCircuitSentFlag  = 3
 	closedTxer            = 4
 	rxPushModeFlag        = 5 // false == pull, use rx(), 1 == push, use WriteAdapter
+
+	// bits 8-16 reserved for peer capabilities (same values used in wire format)
+	CapabilityEOFIndex = 8
+	CapabilityEOFMask  = 1 << CapabilityEOFIndex
+	capabilitiesMask   = 0x1FF00 // bits 8-16
 )
 
 var ErrWriteClosed = errors.New("write closed")
@@ -224,11 +229,38 @@ func (self *Xgress) markCircuitEndReceived() {
 	self.flags.Set(endOfCircuitRecvdFlag, true)
 }
 
+func (self *Xgress) capabilities() uint32 {
+	return CapabilityEOFMask
+}
+
+func (self *Xgress) capabilitiesHeader() []byte {
+	buf := make([]byte, 4)
+	binary.BigEndian.PutUint32(buf, self.capabilities())
+	return buf
+}
+
+func (self *Xgress) setPeerCapabilities(caps []byte) {
+	if len(caps) >= 4 {
+		v := binary.BigEndian.Uint32(caps) & capabilitiesMask
+		for {
+			current := self.flags.Load()
+			next := current | v
+			if self.flags.CompareAndSetAll(current, next) {
+				return
+			}
+		}
+	}
+}
+
+func (self *Xgress) peerSupportsEOF() bool {
+	return self.flags.IsSet(CapabilityEOFIndex)
+}
+
 func (self *Xgress) IsCircuitStarted() bool {
 	return !self.IsTerminator() || self.flags.IsSet(rxerStartedFlag)
 }
 
-func (self *Xgress) firstCircuitStartReceived() bool {
+func (self *Xgress) isRxStarted() bool {
 	return self.flags.CompareAndSet(rxerStartedFlag, false, true)
 }
 
@@ -244,7 +276,7 @@ func (self *Xgress) Start() {
 		if self.Options.CircuitStartTimeout > time.Second {
 			time.AfterFunc(self.Options.CircuitStartTimeout, self.terminateIfNotStarted)
 		}
-	} else {
+	} else if self.isRxStarted() {
 		log.Debug("initiator: sending circuit start")
 		go self.payloadBuffer.run()
 		_ = self.forwardPayload(self.GetStartCircuit(), context.Background())
@@ -273,6 +305,9 @@ func (self *Xgress) GetStartCircuit() *Payload {
 		Flags:     SetOriginatorFlag(uint32(PayloadFlagCircuitStart), self.originator),
 		Sequence:  int32(self.nextReceiveSequence()),
 		Data:      nil,
+		Headers: map[uint8][]byte{
+			HeaderKeyCapabilities: self.capabilitiesHeader(),
+		},
 	}
 	return startCircuit
 }
@@ -423,9 +458,21 @@ func (self *Xgress) HandleControlReceive(controlType ControlType, headers channe
 }
 
 func (self *Xgress) acceptPayload(payload *Payload) {
-	if payload.IsCircuitStartFlagSet() && self.firstCircuitStartReceived() {
+	if payload.IsCircuitStartFlagSet() && self.isRxStarted() {
 		pfxlog.ContextLogger(self.Label()).Debug("start received")
+
+		var peerSentCapabilities bool
+		if caps, ok := payload.Headers[HeaderKeyCapabilities]; ok {
+			self.setPeerCapabilities(caps)
+			peerSentCapabilities = true
+		}
+
 		go self.payloadBuffer.run()
+
+		if peerSentCapabilities {
+			self.sendCapabilitiesResponse()
+		}
+
 		if !self.flags.IsSet(rxPushModeFlag) {
 			go self.rx()
 		}
@@ -473,6 +520,16 @@ func (self *Xgress) tx() {
 			return false
 		}
 
+		// Intercept capabilities header from peer
+		if caps, ok := payload.Headers[HeaderKeyCapabilities]; ok {
+			self.setPeerCapabilities(caps)
+			delete(payload.Headers, HeaderKeyCapabilities)
+			payloadLogger.Debug("peer capabilities received")
+			if len(payload.Data) == 0 && !payload.IsCircuitStartFlagSet() {
+				return true // capabilities-only payload, consume it
+			}
+		}
+
 		payloadLogger.Debug("sending")
 
 		for _, peekHandler := range self.peekHandlers {
@@ -566,6 +623,19 @@ func (self *Xgress) tx() {
 	}
 }
 
+func (self *Xgress) sendCapabilitiesResponse() {
+	payload := &Payload{
+		CircuitId: self.circuitId,
+		Flags:     SetOriginatorFlag(0, self.originator),
+		Sequence:  int32(self.nextReceiveSequence()),
+		Data:      nil,
+		Headers: map[uint8][]byte{
+			HeaderKeyCapabilities: self.capabilitiesHeader(),
+		},
+	}
+	_ = self.forwardPayload(payload, context.Background())
+}
+
 func (self *Xgress) sendEOF() {
 	log := pfxlog.ContextLogger(self.Label())
 	log.Debug("sendEOF")
@@ -575,9 +645,18 @@ func (self *Xgress) sendEOF() {
 		return
 	}
 
+	var flag Flag
+	if self.peerSupportsEOF() {
+		flag = PayloadFlagEOF
+		log.Debug("peer supports EOF, sending EOF flag")
+	} else {
+		flag = PayloadFlagCircuitEnd
+		log.Debug("peer does not support EOF, falling back to CircuitEnd")
+	}
+
 	payload := &Payload{
 		CircuitId: self.circuitId,
-		Flags:     SetOriginatorFlag(uint32(PayloadFlagEOF), self.originator),
+		Flags:     SetOriginatorFlag(uint32(flag), self.originator),
 		Sequence:  int32(self.nextReceiveSequence()),
 		Data:      nil,
 	}
diff --git a/ziti/edge/network/listener.go b/ziti/edge/network/listener.go
index 224b1caf..15dad168 100644
--- a/ziti/edge/network/listener.go
+++ b/ziti/edge/network/listener.go
@@ -450,7 +450,7 @@ func (e MultipleErrors) Error() string {
 	buf := strings.Builder{}
 	buf.WriteString("multiple errors occurred")
 	for idx, err := range e {
-		buf.WriteString(fmt.Sprintf(" %v: %v", idx, err))
+		fmt.Fprintf(&buf, " %v: %v", idx, err)
 	}
 	return buf.String()
 }
diff --git a/ziti/sdkinfo/build_info.go b/ziti/sdkinfo/build_info.go
index 3f8c2c85..2d63995f 100644
--- a/ziti/sdkinfo/build_info.go
+++ b/ziti/sdkinfo/build_info.go
@@ -20,5 +20,5 @@
 package sdkinfo
 
 const (
-	Version   = "v1.2.4"
+	Version   = "v1.2.4-patch1"
 )