diff --git a/rhodecode/model/permission.py b/rhodecode/model/permission.py
--- a/rhodecode/model/permission.py
+++ b/rhodecode/model/permission.py
@@ -77,8 +77,8 @@ class PermissionModel(BaseModel):
                                 form_result['perm_user_name']).scalar()
         u2p = self.sa.query(UserToPerm).filter(UserToPerm.user ==
                                                perm_user).all()
-        if len(u2p) != 3:
-            raise Exception('Defined: %s should be 3  permissions for default'
+        if len(u2p) != 4:
+            raise Exception('Defined: %s should be 4  permissions for default'
                             ' user. This should not happen please verify'
                             ' your database' % len(u2p))
 
@@ -100,6 +100,11 @@ class PermissionModel(BaseModel):
                                         form_result['default_create'])
                     self.sa.add(p)
 
+                elif p.permission.permission_name.startswith('hg.fork.'):
+                    p.permission = self.get_permission_by_name(
+                                        form_result['default_fork'])
+                    self.sa.add(p)
+
             _def_name = form_result['default_perm'].split('repository.')[-1]
             #stage 2 update all default permissions for repos if checked
             if form_result['overwrite_default'] == True: