diff --git a/docs/5___ssd.adoc b/docs/5___ssd.adoc
index db39ed4..21f32bf 100644
--- a/docs/5___ssd.adoc
+++ b/docs/5___ssd.adoc
@@ -337,7 +337,9 @@ The hierarchical names of the parameters or other variables of a system are form
 * For all elements of the system, the hierarchical names of the variables of those elements are formed by prepending the element name and a dot to the hierarchical names of the variables in that element.
 
 {empty}[ _For example for a system A containing a system B which contains an exposed parameter named SP1 and an element C with a parameter P2, the hierarchical names of the parameters in system A are B.SP1 and B.C.P2 respectively.
-The hierarchical name of those parameters inside system B are SP1 and C.P2 respectively._ ]
+The hierarchical name of those parameters inside system B are SP1 and C.P2 respectively, and the hierarchical name of P2 inside element C is just P2.
+
+Therefore a parameter binding on element C shall reference the parameter P2 using its local name P2, not the hierarchical name C.P2, which would be valid for a parameter binding on system B._ ]
 
 Note that the hierarchical names of parameters or other variables do not have to be unique: If two or more variables end up with the same hierarchical name (due to so-called punning), then any parameter values being applied to that name *MUST* be applied to all of them.
 If this is not wanted, then it is up to the generating implementation to ensure that no punning occurs, through proper choice of system and element names.