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Replying to Avatar Nick Slaney

I worry that this is an understated risk in lightning for routing nodes. I’m not even sure if lnd exposes this as an option at channel open.

Shorter timeouts on HTLCs means that if you route an htlc that is a large % of a channel, you could be putting that amount at risk.

If you go down while an HTLC you are forwarding is pending, you could end up missing the preimage. If you don’t come back in time, you could find yourself in a situation where your outbound HTLC has been claimed by one peer via preimage and your inbound htlc has been claimed by the other via the CLTV timeout.

In effect, you would have unintentionally donated your money for the benefit of the original payment sender :)

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Nick Slaney 2y ago

This is also a good example of how the devs intended the thing to be used vs how the users actually use it. It’s very common on LN to vary your max_htlc based on liquidity to signal to senders what sort of payment will go through. This popularized by the great but dearly missed Zero Fee Routing

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