So when someone force closes a channel with you he can't retrieve the funds immediately. That is expected as it gives you time to make a punitive transaction if the other side has published an old channel state. What I discovered is that you need to move your funds in some time interval in what I believe is a sweep transaction. If you don't (because you are using a mobile wallet for example), then the other side can take your funds after some time. Why is that so? Why aren't funds available to you indefinitely?
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221 sats \ 0 replies \ @C_Otto 23 Mar
Here's a good blog series that explains the details: https://ellemouton.com/posts/htlc-deep-dive/
If you forward some HTLC and the outgoing channel is force-closed, your peer may claim those funds only by revealing the pre-image. If this happens after the timeout and if you didn't sweep the HTLC funds by then, this is still possible. However, if you forwarded the HTLC and failed the HTLC back upstream (towards the sender), you effectively lost the HTLC amount. To avoid this, you should sweep the HTLC funds as soon as they time out.
However, in other situations (when you're receiving HTLCs, or when looking at the non-HTLC funds in a channel) there isn't a pressing need to sweep the funds. In fact, I patched my lnd to avoid costly sweep transactions. This isn't necessary anymore, as lnd now uses a better approach to sweeping (slowly ramping up the fees, taking the associated risk into consideration).
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0 sats \ 0 replies \ @Akg10s3 23 Mar
It's a valid question.
Thanks for sharing 👌
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0 sats \ 4 replies \ @BitByBit21 23 Mar outlawed
stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.