diff --git a/daemon/src/connection.rs b/daemon/src/connection.rs
index c03ad64..a602660 100644
--- a/daemon/src/connection.rs
+++ b/daemon/src/connection.rs
@@ -1,7 +1,8 @@
 use crate::model::cfd::OrderId;
 use crate::model::Usd;
+use crate::tokio_ext::FutureExt;
 use crate::{log_error, noise, send_to_socket, setup_taker, wire, Tasks};
-use anyhow::Result;
+use anyhow::{Context, Result};
 use futures::StreamExt;
 use std::collections::HashMap;
 use std::net::SocketAddr;
@@ -29,7 +30,8 @@ pub struct Actor {
     identity_sk: x25519_dalek::StaticSecret,
     maker_to_taker: Box<dyn MessageChannel<wire::MakerToTaker>>,
     /// Max duration since the last heartbeat until we die.
-    timeout: Duration,
+    heartbeat_timeout: Duration,
+    connect_timeout: Duration,
     connected_state: Option<ConnectedState>,
     setup_actors: HashMap<OrderId, xtra::Address<setup_taker::Actor>>,
 }
@@ -70,7 +72,8 @@ impl Actor {
         status_sender: watch::Sender<ConnectionStatus>,
         maker_to_taker: Box<dyn MessageChannel<wire::MakerToTaker>>,
         identity_sk: x25519_dalek::StaticSecret,
-        timeout: Duration,
+        hearthbeat_timeout: Duration,
+        connect_timeout: Duration,
     ) -> Self {
         let (send_to_maker_addr, send_to_maker_ctx) = xtra::Context::new(None);
 
@@ -80,9 +83,10 @@ impl Actor {
             send_to_maker_ctx,
             identity_sk,
             maker_to_taker,
-            timeout,
+            heartbeat_timeout: hearthbeat_timeout,
             connected_state: None,
             setup_actors: HashMap::new(),
+            connect_timeout,
         }
     }
 }
@@ -120,8 +124,20 @@ impl Actor {
         }: Connect,
         ctx: &mut xtra::Context<Self>,
     ) -> Result<()> {
+        tracing::debug!(address = %maker_addr, "Connecting to maker");
+
         let (read, write, noise) = {
-            let mut connection = TcpStream::connect(&maker_addr).await?;
+            let mut connection = TcpStream::connect(&maker_addr)
+                .timeout(self.connect_timeout)
+                .await
+                .with_context(|| {
+                    format!(
+                        "Connection attempt to {} timed out after {}s",
+                        maker_addr,
+                        self.connect_timeout.as_secs()
+                    )
+                })?
+                .with_context(|| format!("Failed to connect to {}", maker_addr))?;
             let noise =
                 noise::initiator_handshake(&mut connection, &self.identity_sk, &maker_identity_pk)
                     .await?;
@@ -142,7 +158,7 @@ impl Actor {
         tasks.add(this.attach_stream(read));
 
         tasks.add(
-            ctx.notify_interval(self.timeout, || MeasurePulse)
+            ctx.notify_interval(self.heartbeat_timeout, || MeasurePulse)
                 .expect("we just started"),
         );
 
@@ -235,7 +251,7 @@ impl Actor {
             )
             .expect("now is always later than heartbeat");
 
-        if time_since_last_heartbeat > self.timeout {
+        if time_since_last_heartbeat > self.heartbeat_timeout {
             self.status_sender
                 .send(ConnectionStatus::Offline)
                 .expect("watch receiver to outlive the actor");
@@ -256,11 +272,9 @@ pub async fn connect(
 ) {
     loop {
         if maker_online_status_feed_receiver.borrow().clone() == ConnectionStatus::Offline {
-            tracing::info!("No connection to the maker, attempting to connect:");
+            tracing::debug!("No connection to the maker");
             'connect: loop {
                 for address in &maker_addresses {
-                    tracing::trace!("Connecting to {}", address);
-
                     let connect_msg = Connect {
                         maker_identity_pk,
                         maker_addr: *address,
@@ -274,11 +288,10 @@ pub async fn connect(
                         tracing::trace!(%address, "Failed to establish connection: {:#}", e);
                         continue;
                     }
-                    tracing::debug!("Connection established");
                     break 'connect;
                 }
 
-                tracing::debug!(
+                tracing::warn!(
                     "Tried connecting to {} addresses without success, retrying in {} seconds",
                     maker_addresses.len(),
                     CONNECT_TO_MAKER_INTERVAL.as_secs()
diff --git a/daemon/src/lib.rs b/daemon/src/lib.rs
index 012cb65..6e381c3 100644
--- a/daemon/src/lib.rs
+++ b/daemon/src/lib.rs
@@ -234,6 +234,7 @@ where
         monitor_constructor: impl FnOnce(Box<dyn StrongMessageChannel<monitor::Event>>, Vec<Cfd>) -> F,
         n_payouts: usize,
         maker_heartbeat_interval: Duration,
+        connect_timeout: Duration,
         projection_actor: Address<projection::Actor>,
     ) -> Result<Self>
     where
@@ -272,6 +273,7 @@ where
             Box::new(cfd_actor_addr.clone()),
             identity_sk,
             maker_heartbeat_interval,
+            connect_timeout,
         )));
 
         tasks.add(
diff --git a/daemon/src/taker.rs b/daemon/src/taker.rs
index 87f4926..b196162 100644
--- a/daemon/src/taker.rs
+++ b/daemon/src/taker.rs
@@ -18,6 +18,7 @@ use sqlx::SqlitePool;
 use std::net::SocketAddr;
 use std::path::PathBuf;
 use std::str::FromStr;
+use std::time::Duration;
 use tokio::sync::watch;
 use tracing_subscriber::filter::LevelFilter;
 use xtra::Actor;
@@ -244,6 +245,7 @@ async fn main() -> Result<()> {
         },
         N_PAYOUTS,
         HEARTBEAT_INTERVAL * 2,
+        Duration::from_secs(10),
         projection_actor.clone(),
     )
     .await?;
diff --git a/daemon/tests/harness/mod.rs b/daemon/tests/harness/mod.rs
index c990403..3435ea1 100644
--- a/daemon/tests/harness/mod.rs
+++ b/daemon/tests/harness/mod.rs
@@ -291,6 +291,7 @@ impl Taker {
             |_, _| async { Ok(monitor) },
             config.n_payouts,
             config.heartbeat_timeout,
+            Duration::from_secs(10),
             projection_actor,
         )
         .await