diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
new file mode 100644
index 00000000..b753b591
--- /dev/null
+++ b/CONTRIBUTING.md
@@ -0,0 +1,11 @@
+# Style guide
+
+This outlines recommended practices for contributors to this package.
+
+## Naming
+
+- Type parameters: use `F` for `F <: Fixed`, `N` for `N <: Normed`,
+  and `X` for `X <: FixedPoint`. Use `f` for the number of fractional bits.
+- Use `Ti` for `Ti <: Integer`, `Tf` for `Tf <: AbstractFloat`, and `Tw`
+  for `widen`ed types.
+- `T` should refer to the underlying "raw" type.
diff --git a/README.md b/README.md
index dd0d086d..464c1018 100644
--- a/README.md
+++ b/README.md
@@ -5,7 +5,7 @@
 [![codecov.io](http://codecov.io/github/JuliaMath/FixedPointNumbers.jl/coverage.svg?branch=master)](http://codecov.io/github/JuliaMath/FixedPointNumbers.jl?branch=master)
 
 This library implements fixed-point number types.  A
-[fixed-point number][wikipedia] represents a fractional, or
+[fixed-point number] represents a fractional, or
 non-integral, number.  In contrast with the more widely known
 floating-point numbers, with fixed-point numbers the decimal point
 doesn't "float": fixed-point numbers are effectively integers that are
@@ -37,7 +37,7 @@ except the sign bit) for the fractional part. The value of the number
 is interpreted as if the integer representation has been divided by
 `2^f`. Consequently, `Fixed{Int8,7}` numbers `x` satisfy
 
-```
+```julia
 -1.0 = -128/128 ≤ x ≤ 127/128 ≈ 0.992.
 ```
 
@@ -64,4 +64,82 @@ More generally, an arbitrary number of bits from any of the standard unsigned
 integer widths can be used for the fractional part.  For example:
 `Normed{UInt32,16}`, `Normed{UInt64,3}`, `Normed{UInt128,7}`.
 
-[wikipedia]: http://en.wikipedia.org/wiki/Fixed-point_arithmetic
+# Computation with Fixed and Normed numbers
+
+You can perform mathematical operations with `FixedPoint` numbers, but keep in mind
+that they are vulnerable to both [rounding] and [overflow]. For example:
+
+```julia
+julia> x = N0f8(0.8)
+0.8N0f8
+
+julia> float(x) + x
+1.6f0
+
+julia> x + x
+0.596N0f8
+```
+
+This is a consequence of the rules that govern overflow in integer arithmetic:
+
+```julia
+julia> y = reinterpret(x)        # `reinterpret(x::FixedPoint)` reinterprets as the underlying "raw" type
+0xcc
+
+julia> reinterpret(N0f8, y + y)  # add two UInt8s and then reinterpret as N0f8
+0.596N0f8
+```
+
+Similarly,
+
+```julia
+julia> x = eps(N0f8)             # smallest nonzero `N0f8` number
+0.004N0f8
+
+julia> x*x
+0.0N0f8
+```
+
+which is rounding-induced [underflow].  Finally,
+
+```julia
+julia> x = N4f12(15)
+15.0N4f12
+
+julia> x*x
+ERROR: ArgumentError: Normed{UInt16,12} is a 16-bit type representing 65536 values from 0.0 to 16.0037; cannot represent 225.0
+Stacktrace:
+ [1] throw_converterror(::Type{Normed{UInt16,12}}, ::Float32) at /home/tim/.julia/dev/FixedPointNumbers/src/FixedPointNumbers.jl:251
+ [2] _convert at /home/tim/.julia/dev/FixedPointNumbers/src/normed.jl:77 [inlined]
+ [3] FixedPoint at /home/tim/.julia/dev/FixedPointNumbers/src/FixedPointNumbers.jl:51 [inlined]
+ [4] convert at ./number.jl:7 [inlined]
+ [5] *(::Normed{UInt16,12}, ::Normed{UInt16,12}) at /home/tim/.julia/dev/FixedPointNumbers/src/normed.jl:254
+ [6] top-level scope at REPL[16]:1
+```
+
+In some circumstances, it may make most sense to think of `FixedPoint` numbers as *storage types*
+rather than computational types. You can call `float(x)` to convert `x` to a floating-point equivalent that is reasonably
+safe for computation; in the type domain, `floattype(T::Type)` returns the corresponding type.
+Note that in some cases `floattype(T)` differs from `float`'s behavior on the corresponding "raw" type:
+
+```julia
+julia> float(UInt8)
+Float64
+
+julia> floattype(N0f8)
+Float32
+```
+
+Because of the role of FixedPointNumbers in domains such as image-processing, this package tries to limit the expansion of the
+number of bits needed to store results.
+
+
+## Contributing to this package
+
+Please see [CONTRIBUTING.md](CONTRIBUTING.md) for information about improving this package.
+
+
+[fixed-point number]: http://en.wikipedia.org/wiki/Fixed-point_arithmetic
+[overflow]: https://en.wikipedia.org/wiki/Integer_overflow
+[rounding]: https://en.wikipedia.org/wiki/Round-off_error
+[underflow]: https://en.wikipedia.org/wiki/Arithmetic_underflow