diff --git a/bip-0138.md b/bip-0138.md
index 90ae803e..8c5d6cda 100644
--- a/bip-0138.md
+++ b/bip-0138.md
@@ -10,7 +10,7 @@
   Discussion: https://delvingbitcoin.org/t/a-simple-backup-scheme-for-wallet-accounts/1607
               https://groups.google.com/g/bitcoindev/c/5NgJbpVDgEc/m/TtGK9sF9BgAJ
               https://github.com/bitcoin/bips/pull/1951
-  Version: 0.1.1
+  Version: 0.1.2
   Requires: 32, 340, 380, 388, 389
 ```
 
@@ -196,7 +196,9 @@ and integrity.[^chacha-default]
     hardware acceleration, making it suitable for hardware wallets and embedded devices.
 
 * let $nonce$ = random(96 bits)
-* let $ciphertext$ = encrypt($payload$, $secret$, $nonce$)
+* let $ciphertext$ = encrypt($payload$, $secret$, $nonce$, $aad$)
+
+The additional authenticated data ($aad$) is empty.
 
 The $nonce$ MUST NOT be all zero. If the random source yields an all-zero nonce,
 the encoder MUST generate a new one.
@@ -210,7 +212,7 @@ computes:
 * for each `individual_secret_i` generate `reconstructed_secret_i` =
 `individual_secret_i` ⊕ `si`
 * for each `reconstructed_secret_i` process $payload$ =
-decrypt($ciphertext$, $secret$, $nonce$)
+decrypt($ciphertext$, $secret$, $nonce$, $aad$)
 
 Decryption will succeed if and only if **p** was one of the keys in the
 descriptor/wallet policy.
@@ -336,7 +338,7 @@ CHACHA20_POLY1305 (per RFC 8439) supports plaintext up to 2^38 - 64 bytes.
 Implementations MAY impose stricter limits based on platform constraints
 (e.g., limiting to 2^32 - 1 bytes on 32-bit architectures).
 
-Implementations MUST reject empty payloads.
+Implementations MUST reject empty payloads (i.e. zero content items).
 
 #### Ciphertext
 
@@ -406,7 +408,7 @@ remaining bytes are `PADDING`. A `PAYLOAD` MUST contain at least one item (see
 
 `TYPE_LENGTH`: variable-length integer representing the length of `TYPE_PARAMS` in bytes.
 
-For all `TYPE` values except `0x01`, `TYPE_LENGTH` MUST be present.[^length-required]
+For all `TYPE` values except `0x00` and `0x01`, `TYPE_LENGTH` MUST be present.[^length-required]
 
 [^length-required]: **Why is `TYPE_LENGTH` mandatory?**
     `TYPE_LENGTH` is what lets a parser skip a content type it does not implement and still
@@ -415,20 +417,19 @@ For all `TYPE` values except `0x01`, `TYPE_LENGTH` MUST be present.[^length-requ
     implementation that only handles descriptors from recovering that descriptor. A
     type whose `TYPE_PARAMS` is always empty still carries a zero `TYPE_LENGTH` for this reason.
     `0x01` is exempt because every implementation handles it, so it is never skipped
-    blindly.
+    blindly. `0x00` is a terminator rather than a content item.
 
 `TYPE_PARAMS`: variable-length field whose encoding depends on `TYPE`.
 
 For `TYPE` values defined above:
-- 0x00: parsers MUST stop reading content items and treat the remaining bytes as
-  padding.
+- 0x00: parsers MUST stop immediately and treat the remaining bytes as padding.
 - 0x01: `TYPE_LENGTH` MUST be omitted and `TYPE_PARAMS` is a 2-byte big-endian unsigned integer
   representing the BIP number that defines it.
 - 0x02: `TYPE_PARAMS` MUST be `TYPE_LENGTH` bytes of opaque, vendor-specific data.
 - 0x03: `TYPE_PARAMS` MUST be empty, and the following `CONTENT` is the string itself,
   which MUST be valid UTF-8.
 
-For all `TYPE` values except `0x01`, parsers MUST reject `CONTENT_TYPE` if `TYPE_LENGTH` exceeds
+For all `TYPE` values except `0x00` and `0x01`, parsers MUST reject `CONTENT_TYPE` if `TYPE_LENGTH` exceeds
 the remaining payload bytes.
 
 For an unknown `TYPE` less than `0x80`, parsers MUST consume its `TYPE_LENGTH` bytes of
@@ -593,6 +594,10 @@ The version field enables possible future enhancements:
 vectors for key serialisations.  
 [content_type.json](./bip-0138/test_vectors/content_type.json) contains test
 vectors for content types serialisations.  
+[payload.json](./bip-0138/test_vectors/payload.json) contains test vectors for payload parsing.
+`payload` and each item's `content` are hexadecimal bytes; `type` is the numeric
+type byte, and `items` lists the content items before the terminator.
+
 [derivation_path.json](./bip-0138/test_vectors/derivation_path.json) contains
 test vectors for derivation paths serialisations.  
 [individual_secrets.json](./bip-0138/test_vectors/individual_secrets.json)
@@ -628,6 +633,9 @@ their reviews and suggestions.
 
 ## Changelog
 
+* __0.1.2__ (2026-09-24):
+    * Specify empty AEAD associated data.
+    * Clarify that `0x00` ends payload parsing and add test vectors.
 * __0.1.1__ (2026-09-23):
     * Clarify derivation range bounds and zero or omitted birth-time semantics for descriptors and policies.
     * Clarify receive-only descriptor sets and add a corresponding test vector.
diff --git a/bip-0138/test_vectors/payload.json b/bip-0138/test_vectors/payload.json
new file mode 100644
index 00000000..90ee8f65
--- /dev/null
+++ b/bip-0138/test_vectors/payload.json
@@ -0,0 +1,18 @@
+[
+  {
+    "description": "Bytes after terminator are ignored",
+    "valid": true,
+    "payload": "030001610080ff",
+    "items": [
+      {
+        "type": 3,
+        "content": "61"
+      }
+    ]
+  },
+  {
+    "description": "Payload with no content item.",
+    "valid": false,
+    "payload": "00"
+  }
+]