diff --git a/theories/algebra/ofe.v b/theories/algebra/ofe.v
index 7a722900b4afbd9f56191fc4e167994b0f92ff1a..84dcaf037d167c81ed5a3b5d05d6cabb85dcb0bb 100644
--- a/theories/algebra/ofe.v
+++ b/theories/algebra/ofe.v
@@ -298,12 +298,32 @@ Definition fixpointK `{Cofe A, Inhabited A} k (f : A → A)
 Section fixpointK.
   Local Set Default Proof Using "Type*".
   Context `{Cofe A, Inhabited A} (f : A → A) (k : nat).
-  Context `{f_contractive : !Contractive (Nat.iter k f)}.
-  (* TODO: Can we get rid of this assumption, derive it from contractivity? *)
-  Context {f_ne : NonExpansive f}.
+  Context {f_contractive : Contractive (Nat.iter k f)} {f_ne : NonExpansive f}.
+  (* Note than f_ne is crucial here:  there are functions f such that f^2 is contractive,
+     but f is not non-expansive.
+     Consider for example f: SPred → SPred (where SPred is "downclosed sets of natural numbers").
+     Define f (using informative excluded middle) as follows:
+     f(N) = N  (where N is the set of all natural numbers)
+     f({0, ..., n}) = {0, ... n-1}  if n is even (so n-1 is at least -1, in which case we return the empty set)
+     f({0, ..., n}) = {0, ..., n+2} if n is odd
+     In other words, if we consider elements of SPred as ordinals, then we decreaste odd finite
+     ordinals by 1 and increase even finite ordinals by 2.
+     f is not non-expansive:  Consider f({0}) = ∅ and f({0,1}) = f({0,1,2,3}).
+     The arguments are clearly 0-equal, but the results are not.
+
+     Now consider g := f^2. We have
+     g(N) = N
+     g({0, ..., n}) = {0, ... n+1}  if n is even
+     g({0, ..., n}) = {0, ..., n+4} if n is odd
+     g is contractive.  All outputs contain 0, so they are all 0-equal.
+     Now consider two n-equal inputs. We have to show that the outputs are n+1-equal.
+     Either they both do not contain n in which case they have to be fully equal and
+     hence so are the results.  Or else they both contain n, so the results will
+     both contain n+1, so the results are n+1-equal.
+   *)
 
   Let f_proper : Proper ((≡) ==> (≡)) f := ne_proper f.
-  Existing Instance f_proper.
+  Local Existing Instance f_proper.
 
   Lemma fixpointK_unfold : fixpointK k f ≡ f (fixpointK k f).
   Proof.