Is AlbyHub custodial? What is going wrong?

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no, they shifted to non custodial and simply help with the backend liquidity and channel management. You can buy a million Sat liquidity channel for 20k seats and have your own node you can run on your 24/7 device. The issue I ran into was when trying to move sats in clumps larger than 50k, it wouldn't work and there doesn't seem to be a place to edit fee limits.