diff --git a/docs/src/main/tut/faq.md b/docs/src/main/tut/faq.md
index a886aecde1..408c9d9a68 100644
--- a/docs/src/main/tut/faq.md
+++ b/docs/src/main/tut/faq.md
@@ -17,6 +17,7 @@ position: 40
  * [Why is some example code not compiling for me?](#example-compile)
  * [How can I turn my List of `<something>` into a `<something>` of a list?](#traverse)
  * [Where is `ListT`?](#listt)
+ * [Where are `Applicative`s for monad transformers?(#applicative-monad-transformers)
  * [Where is `IO`/`Task`?](#task)
  * [What does `@typeclass` mean?](#simulacrum)
  * [What do types like `?` and `λ` mean?](#kind-projector)
@@ -124,6 +125,12 @@ def even(i: Int): ErrorsOr[Int] = if (i % 2 == 0) i.validNel else s"$i is odd".i
 nl.traverse(even)
 ```
 
+## <a id="applicative-monad-transformers" href="#applicative-monad-transformers">Where are `Applicative`s for monad transformers?</a>
+
+An `Applicative` instance for `OptionT[F, ?]`/`EitherT[F, E, ?]`, built without a corresponding `Monad` instance for `F`, would be unlawful, so it's not included. See [https://typelevel.org/cats/guidelines.html#applicative-monad-transformers](the guidelines) for a more detailed explanation.
+
+As an alternative, using `.toNested` on the monad transformer is recommended, although its `ap` will still be inconsistent with the Monad instance's.`.
+
 ## <a id="task" href="#task"></a>Where is IO/Task?
 
 In purely functional programming, a monadic `IO` or `Task` type is often used to handle side effects such as file/network IO. In some languages and frameworks, such a type also serves as the primary abstraction through which parallelism is achieved.  Nearly every real-world purely functional application or service is going to require such a data type, and this gives rise to an obvious question: why doesn't cats include such a type?
diff --git a/docs/src/main/tut/guidelines.md b/docs/src/main/tut/guidelines.md
index 2ebad93c81..f6589d45f5 100644
--- a/docs/src/main/tut/guidelines.md
+++ b/docs/src/main/tut/guidelines.md
@@ -88,19 +88,19 @@ This rule is relatively flexible. Use what you see appropriate. The goal is to m
 
 ### <a id="implicit-priority" href="#implicit-priority"></a> Implicit instance priority
 
-When there are multiple instances provided implicitly, if the type class of them are in the same inheritance hierarchy, 
+When there are multiple instances provided implicitly, if the type class of them are in the same inheritance hierarchy,
 the instances need to be separated out into different abstract class/traits so that they don't conflict with each other. The names of these abstract classes/traits should be numbered with a priority with 0 being the highest priority. The abstract classes/trait
-with higher priority inherits from the ones with lower priority. The most specific (whose type class is the lowest in the hierarchy) instance should be placed in the abstract class/ trait with the highest priority.  Here is an example. 
+with higher priority inherits from the ones with lower priority. The most specific (whose type class is the lowest in the hierarchy) instance should be placed in the abstract class/ trait with the highest priority.  Here is an example.
 
 ```scala
-@typeclass 
+@typeclass
 trait Functor[F[_]]
 
 @typeclass
 trait Monad[F[_]] extends Functor
 
 ...
-object Kleisli extends KleisliInstance0 
+object Kleisli extends KleisliInstance0
 
 abstract class KleisliInstance0 extends KleisliInstance1 {
   implicit def catsDataMonadForKleisli[F[_], A]: Monad[Kleisli[F, A, ?]] = ...
@@ -113,9 +113,29 @@ abstract class KleisliInstance1 {
 
 ### Type classes that ONLY define laws.
 
-We can introduce new type classes for the sake of adding laws that don't apply to the parent type class, e.g. `CommutativeSemigroup` and 
+We can introduce new type classes for the sake of adding laws that don't apply to the parent type class, e.g. `CommutativeSemigroup` and
 `CommutativeArrow`.
 
+### <a id="applicative-monad-transformers" href="#applicative-monad-transformers">Applicative instances for monad transformers</a>
+
+We explicitly don't provide an instance of `Applicative` for e.g. `EitherT[F, String, ?]` given an `Applicative[F]`.
+An attempt to construct one without a proper `Monad[F]` instance would be inconsistent in `ap` with the provided `Monad` instance
+for `EitherT[F, String, ?]`. Such an instance will be derived if you use `Nested` instead:
+
+```scala
+import cats._, cats.data._, cats.implicits._
+
+val a = EitherT(List(Left("err"), Right(1)))
+val x = (a *> a).value
+> x: List[Either[String, Int]] = List(Left("err"), Left("err"), Right(1))
+
+val y = (a.toNested *> a.toNested).value
+> y: List[Either[String, Int]] = List(Left("err"), Left("err"), Left("err"), Right(1))
+
+x === y
+> false
+```
+
 #### TODO:
 
 Once we drop 2.10 support, AnyVal-extending class constructor parameters can be marked as private.