diff --git a/lib/wallet/path.js b/lib/wallet/path.js
index 80f99b44..7e187cd2 100644
--- a/lib/wallet/path.js
+++ b/lib/wallet/path.js
@@ -120,8 +120,13 @@ class Path {
     this.account = br.readU32();
     this.keyType = br.readU8();
 
-    this.type = br.readU8();
-    this.version = br.readI8();
+    const flags = br.readU8();
+
+    this.type = flags & 7;
+    this.version = flags >>> 3;
+
+    if (this.version === 0x1f)
+      this.version = -1;
 
     switch (this.keyType) {
       case Path.types.HD:
@@ -161,7 +166,7 @@ class Path {
   getSize() {
     let size = 0;
 
-    size += 5;
+    size += 6;
 
     switch (this.keyType) {
       case Path.types.HD:
@@ -173,8 +178,6 @@ class Path {
         break;
     }
 
-    size += 2;
-
     return size;
   }
 
@@ -190,8 +193,14 @@ class Path {
     bw.writeU32(this.account);
     bw.writeU8(this.keyType);
 
-    bw.writeU8(this.type);
-    bw.writeI8(this.version);
+    let version = this.version;
+
+    if (version === -1)
+      version = 0x1f;
+
+    const flags = (version << 3) | this.type;
+
+    bw.writeU8(flags);
 
     switch (this.keyType) {
       case Path.types.HD:
diff --git a/migrate/walletdb6to7.js b/migrate/walletdb6to7.js
index 292e7310..16128535 100644
--- a/migrate/walletdb6to7.js
+++ b/migrate/walletdb6to7.js
@@ -483,7 +483,7 @@ async function updatePaths() {
         break;
     }
 
-    const version = br.readI8();
+    let version = br.readI8();
 
     let type = br.readU8();
 
@@ -497,8 +497,12 @@ async function updatePaths() {
     bw.writeU32(account);
     bw.writeU8(keyType);
 
-    bw.writeU8(type);
-    bw.writeI8(version);
+    if (version === -1)
+      version = 0x1f;
+
+    const flags = (version << 3) | type;
+
+    bw.writeU8(flags);
 
     switch (keyType) {
       case 0: