diff --git a/src/Simplex/FileTransfer/Client.hs b/src/Simplex/FileTransfer/Client.hs
index 4fb18c27a..e4a64c0c9 100644
--- a/src/Simplex/FileTransfer/Client.hs
+++ b/src/Simplex/FileTransfer/Client.hs
@@ -41,7 +41,6 @@ import Simplex.Messaging.Client
     transportClientConfig,
     unexpectedResponse,
   )
-import Simplex.Messaging.Client.Agent ()
 import qualified Simplex.Messaging.Crypto as C
 import qualified Simplex.Messaging.Crypto.Lazy as LC
 import Simplex.Messaging.Encoding (smpDecode, smpEncode)
diff --git a/src/Simplex/FileTransfer/Client/Agent.hs b/src/Simplex/FileTransfer/Client/Agent.hs
index 1dafc8108..c17790c2d 100644
--- a/src/Simplex/FileTransfer/Client/Agent.hs
+++ b/src/Simplex/FileTransfer/Client/Agent.hs
@@ -18,7 +18,6 @@ import Data.Text.Encoding (decodeUtf8)
 import Simplex.FileTransfer.Client
 import Simplex.Messaging.Agent.RetryInterval
 import Simplex.Messaging.Client (NetworkConfig (..), ProtocolClientError (..), temporaryClientError)
-import Simplex.Messaging.Client.Agent ()
 import Simplex.Messaging.Encoding.String
 import Simplex.Messaging.Protocol (ProtocolServer (..), XFTPServer)
 import Simplex.Messaging.TMap (TMap)
diff --git a/src/Simplex/Messaging/Agent/Client.hs b/src/Simplex/Messaging/Agent/Client.hs
index a2d7b5f59..32297713a 100644
--- a/src/Simplex/Messaging/Agent/Client.hs
+++ b/src/Simplex/Messaging/Agent/Client.hs
@@ -197,7 +197,6 @@ import qualified Simplex.Messaging.Agent.Store.SQLite.DB as DB
 import Simplex.Messaging.Agent.TRcvQueues (TRcvQueues (getRcvQueues))
 import qualified Simplex.Messaging.Agent.TRcvQueues as RQ
 import Simplex.Messaging.Client
-import Simplex.Messaging.Client.Agent ()
 import qualified Simplex.Messaging.Crypto as C
 import Simplex.Messaging.Encoding
 import Simplex.Messaging.Encoding.String
diff --git a/src/Simplex/Messaging/Agent/Env/SQLite.hs b/src/Simplex/Messaging/Agent/Env/SQLite.hs
index 30b2b566a..63aa652ac 100644
--- a/src/Simplex/Messaging/Agent/Env/SQLite.hs
+++ b/src/Simplex/Messaging/Agent/Env/SQLite.hs
@@ -54,7 +54,6 @@ import Simplex.Messaging.Agent.RetryInterval
 import Simplex.Messaging.Agent.Store.SQLite
 import qualified Simplex.Messaging.Agent.Store.SQLite.Migrations as Migrations
 import Simplex.Messaging.Client
-import Simplex.Messaging.Client.Agent ()
 import qualified Simplex.Messaging.Crypto as C
 import Simplex.Messaging.Crypto.Ratchet (VersionRangeE2E, supportedE2EEncryptVRange)
 import Simplex.Messaging.Notifications.Client (defaultNTFClientConfig)
diff --git a/src/Simplex/Messaging/Agent/NtfSubSupervisor.hs b/src/Simplex/Messaging/Agent/NtfSubSupervisor.hs
index 4aaa5f278..1e2c7cb00 100644
--- a/src/Simplex/Messaging/Agent/NtfSubSupervisor.hs
+++ b/src/Simplex/Messaging/Agent/NtfSubSupervisor.hs
@@ -33,7 +33,6 @@ import Simplex.Messaging.Agent.Protocol (ACommand (..), APartyCmd (..), AgentErr
 import Simplex.Messaging.Agent.RetryInterval
 import Simplex.Messaging.Agent.Store
 import Simplex.Messaging.Agent.Store.SQLite
-import Simplex.Messaging.Client.Agent ()
 import qualified Simplex.Messaging.Crypto as C
 import Simplex.Messaging.Notifications.Protocol (NtfSubStatus (..), NtfTknStatus (..), SMPQueueNtf (..))
 import Simplex.Messaging.Notifications.Types
diff --git a/src/Simplex/Messaging/Client/Agent.hs b/src/Simplex/Messaging/Client/Agent.hs
index f27de3667..bd878ada7 100644
--- a/src/Simplex/Messaging/Client/Agent.hs
+++ b/src/Simplex/Messaging/Client/Agent.hs
@@ -9,7 +9,6 @@
 {-# LANGUAGE ScopedTypeVariables #-}
 {-# LANGUAGE TupleSections #-}
 {-# LANGUAGE TypeApplications #-}
-{-# OPTIONS_GHC -fno-warn-orphans #-}
 
 module Simplex.Messaging.Client.Agent where
 
@@ -21,7 +20,6 @@ import Control.Monad
 import Control.Monad.Except
 import Control.Monad.IO.Unlift
 import Control.Monad.Trans.Except
-import Control.Monad.Trans.Reader
 import Crypto.Random (ChaChaDRG)
 import Data.Bifunctor (bimap, first)
 import Data.ByteString.Char8 (ByteString)
@@ -50,7 +48,6 @@ import Simplex.Messaging.Transport
 import Simplex.Messaging.Util (catchAll_, ifM, toChunks, whenM, ($>>=))
 import System.Timeout (timeout)
 import UnliftIO (async)
-import UnliftIO.Exception (Exception)
 import qualified UnliftIO.Exception as E
 import UnliftIO.STM
 
@@ -114,31 +111,6 @@ data SMPClientAgent = SMPClientAgent
 
 type OwnServer = Bool
 
-newtype InternalException e = InternalException {unInternalException :: e}
-  deriving (Eq, Show)
-
-instance Exception e => Exception (InternalException e)
-
-instance Exception e => MonadUnliftIO (ExceptT e IO) where
-  {-# INLINE withRunInIO #-}
-  withRunInIO :: ((forall a. ExceptT e IO a -> IO a) -> IO b) -> ExceptT e IO b
-  withRunInIO inner =
-    ExceptT . fmap (first unInternalException) . E.try $
-      withRunInIO $ \run ->
-        inner $ run . (either (E.throwIO . InternalException) pure <=< runExceptT)
-
--- as MonadUnliftIO instance for IO is `withRunInIO inner = inner id`,
--- the last two lines could be replaced with:
--- inner $ either (E.throwIO . InternalException) pure <=< runExceptT
-
-instance Exception e => MonadUnliftIO (ExceptT e (ReaderT r IO)) where
-  {-# INLINE withRunInIO #-}
-  withRunInIO :: ((forall a. ExceptT e (ReaderT r IO) a -> IO a) -> IO b) -> ExceptT e (ReaderT r IO) b
-  withRunInIO inner =
-    withExceptT unInternalException . ExceptT . E.try $
-      withRunInIO $ \run ->
-        inner $ run . (either (E.throwIO . InternalException) pure <=< runExceptT)
-
 newSMPClientAgent :: SMPClientAgentConfig -> TVar ChaChaDRG -> STM SMPClientAgent
 newSMPClientAgent agentCfg@SMPClientAgentConfig {msgQSize, agentQSize} randomDrg = do
   active <- newTVar True
diff --git a/src/Simplex/Messaging/Crypto/File.hs b/src/Simplex/Messaging/Crypto/File.hs
index 2787df58e..9608d21b7 100644
--- a/src/Simplex/Messaging/Crypto/File.hs
+++ b/src/Simplex/Messaging/Crypto/File.hs
@@ -31,7 +31,6 @@ import qualified Data.ByteString.Char8 as B
 import qualified Data.ByteString.Lazy as LB
 import Data.List.NonEmpty (NonEmpty (..))
 import Data.Maybe (isJust)
-import Simplex.Messaging.Client.Agent ()
 import qualified Simplex.Messaging.Crypto as C
 import Simplex.Messaging.Crypto.Lazy (LazyByteString)
 import qualified Simplex.Messaging.Crypto.Lazy as LC
diff --git a/src/Simplex/Messaging/Util.hs b/src/Simplex/Messaging/Util.hs
index b42d5b378..ef2cc6933 100644
--- a/src/Simplex/Messaging/Util.hs
+++ b/src/Simplex/Messaging/Util.hs
@@ -97,15 +97,15 @@ catchAll_ :: IO a -> IO a -> IO a
 catchAll_ a = catchAll a . const
 {-# INLINE catchAll_ #-}
 
-tryAllErrors :: (MonadUnliftIO m, MonadError e m) => (E.SomeException -> e) -> m a -> m (Either e a)
-tryAllErrors err action = tryError action `UE.catch` (pure . Left . err)
+tryAllErrors :: MonadUnliftIO m => (E.SomeException -> e) -> ExceptT e m a -> ExceptT e m (Either e a)
+tryAllErrors err action = ExceptT $ Right <$> runExceptT action `UE.catch` (pure . Left . err)
 {-# INLINE tryAllErrors #-}
 
 tryAllErrors' :: MonadUnliftIO m => (E.SomeException -> e) -> ExceptT e m a -> m (Either e a)
 tryAllErrors' err action = runExceptT action `UE.catch` (pure . Left . err)
 {-# INLINE tryAllErrors' #-}
 
-catchAllErrors :: (MonadUnliftIO m, MonadError e m) => (E.SomeException -> e) -> m a -> (e -> m a) -> m a
+catchAllErrors :: MonadUnliftIO m => (E.SomeException -> e) -> ExceptT e m a -> (e -> ExceptT e m a) -> ExceptT e m a
 catchAllErrors err action handler = tryAllErrors err action >>= either handler pure
 {-# INLINE catchAllErrors #-}
 
@@ -113,11 +113,11 @@ catchAllErrors' :: MonadUnliftIO m => (E.SomeException -> e) -> ExceptT e m a ->
 catchAllErrors' err action handler = tryAllErrors' err action >>= either handler pure
 {-# INLINE catchAllErrors' #-}
 
-catchThrow :: (MonadUnliftIO m, MonadError e m) => m a -> (E.SomeException -> e) -> m a
+catchThrow :: MonadUnliftIO m => ExceptT e m a -> (E.SomeException -> e) -> ExceptT e m a
 catchThrow action err = catchAllErrors err action throwError
 {-# INLINE catchThrow #-}
 
-allFinally :: (MonadUnliftIO m, MonadError e m) => (E.SomeException -> e) -> m a -> m b -> m a
+allFinally :: MonadUnliftIO m => (E.SomeException -> e) -> ExceptT e m a -> ExceptT e m b -> ExceptT e m a
 allFinally err action final = tryAllErrors err action >>= \r -> final >> either throwError pure r
 {-# INLINE allFinally #-}
 
diff --git a/tests/AgentTests/FunctionalAPITests.hs b/tests/AgentTests/FunctionalAPITests.hs
index 2ece3e7b9..6e5e09fc3 100644
--- a/tests/AgentTests/FunctionalAPITests.hs
+++ b/tests/AgentTests/FunctionalAPITests.hs
@@ -1,7 +1,9 @@
 {-# LANGUAGE DataKinds #-}
 {-# LANGUAGE DuplicateRecordFields #-}
 {-# LANGUAGE FlexibleContexts #-}
+{-# LANGUAGE FlexibleInstances #-}
 {-# LANGUAGE GADTs #-}
+{-# LANGUAGE InstanceSigs #-}
 {-# LANGUAGE LambdaCase #-}
 {-# LANGUAGE NamedFieldPuns #-}
 {-# LANGUAGE NumericUnderscores #-}
@@ -55,6 +57,7 @@ import Control.Concurrent (forkIO, killThread, threadDelay)
 import Control.Monad
 import Control.Monad.Except
 import Control.Monad.Reader
+import Data.Bifunctor (first)
 import Data.ByteString.Char8 (ByteString)
 import qualified Data.ByteString.Char8 as B
 import Data.Either (isRight)
@@ -66,7 +69,7 @@ import Data.Maybe (isJust, isNothing)
 import qualified Data.Set as S
 import Data.Time.Clock (diffUTCTime, getCurrentTime)
 import Data.Time.Clock.System (SystemTime (..), getSystemTime)
-import Data.Type.Equality
+import Data.Type.Equality (testEquality, (:~:) (Refl))
 import Data.Word (Word16)
 import qualified Database.SQLite.Simple as SQL
 import GHC.Stack (withFrozenCallStack)
@@ -2806,3 +2809,16 @@ exchangeGreetingsMsgIds alice bobId aliceMsgId bob aliceId bobMsgId = do
   get bob ##> ("", aliceId, SENT bobMsgId')
   get alice =##> \case ("", c, Msg "hello too") -> c == bobId; _ -> False
   ackMessage alice bobId aliceMsgId' Nothing
+
+newtype InternalException e = InternalException {unInternalException :: e}
+  deriving (Eq, Show)
+
+instance Exception e => Exception (InternalException e)
+
+instance Exception e => MonadUnliftIO (ExceptT e IO) where
+  {-# INLINE withRunInIO #-}
+  withRunInIO :: ((forall a. ExceptT e IO a -> IO a) -> IO b) -> ExceptT e IO b
+  withRunInIO inner =
+    ExceptT . fmap (first unInternalException) . try $
+      withRunInIO $ \run ->
+        inner $ run . (either (throwIO . InternalException) pure <=< runExceptT)
diff --git a/tests/CoreTests/UtilTests.hs b/tests/CoreTests/UtilTests.hs
index 9e413e838..2254ecafd 100644
--- a/tests/CoreTests/UtilTests.hs
+++ b/tests/CoreTests/UtilTests.hs
@@ -2,11 +2,11 @@
 
 module CoreTests.UtilTests where
 
+import AgentTests.FunctionalAPITests ()
 import Control.Exception (Exception, SomeException, throwIO)
 import Control.Monad.Except
 import Control.Monad.IO.Class
 import Data.IORef
-import Simplex.Messaging.Client.Agent ()
 import Simplex.Messaging.Util
 import Test.Hspec
 import qualified UnliftIO.Exception as UE