diff --git a/model/overlay.go b/model/overlay.go
index 03fe0bb..b79a4ce 100644
--- a/model/overlay.go
+++ b/model/overlay.go
@@ -19,6 +19,24 @@ type MessageWrapper struct {
 	RecvTime *time.Time `json:"r,omitempty"`
 }
 
+// Channel is defined as being the last 3 bits of the overlay id
+// Channel 0 is reserved for the main conversation
+// Channel 2 is reserved for conversation admin (managed groups)
+// Channel 7 is reserved for streams (no ack, no store)
+func (mw MessageWrapper) Channel() int {
+	if mw.Overlay > 1024 {
+		return mw.Overlay & 0x07
+	}
+	// for backward compatibilty all overlays less than 0x400 i.e. 1024 are
+	// mapped to channel 0 regardless of their channel status.
+	return 0
+}
+
+// If Overlay is a Stream Message it should not be ackd, or stored.
+func (mw MessageWrapper) IsStream() bool {
+	return mw.Channel() == 0x07
+}
+
 // OverlayChat is the canonical identifier for chat overlays
 const OverlayChat = 1
 
diff --git a/peer/cwtch_peer.go b/peer/cwtch_peer.go
index 116b1a1..5311b09 100644
--- a/peer/cwtch_peer.go
+++ b/peer/cwtch_peer.go
@@ -438,7 +438,7 @@ func (cp *cwtchPeer) SendMessage(conversation int, message string) (int, error)
 
 			// check if we should store this message locally...
 			if cm, err := model.DeserializeMessage(message); err == nil {
-				if cm.Overlay < 1024 || cm.Overlay&0x7 != 0x7 {
+				if !cm.IsStream() {
 					// For p2p messages we store the event id of the message as the "signature" we can then look this up in the database later for acks
 					id, err = cp.storage.InsertMessage(conversationInfo.ID, 0, message, model.Attributes{constants.AttrAuthor: string(onion), constants.AttrAck: event.False, constants.AttrSentTimestamp: time.Now().Format(time.RFC3339Nano)}, ev.EventID, model.CalculateContentHash(string(onion), message))
 					if err != nil {
@@ -1490,7 +1490,7 @@ func (cp *cwtchPeer) storeMessage(handle string, message string, sent time.Time)
 
 	// Don't store messages in channel 7
 	if cm, err := model.DeserializeMessage(message); err == nil {
-		if cm.Overlay > 1024 && cm.Overlay&0x7 == 0x7 {
+		if cm.IsStream() {
 			return -1, nil
 		}
 	} else {