We never custody, but you're right below the threshold wouldn't be paid yet.

However, a huge reward like this is going to push many more past that threshold

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I purchased an ApolloBTC miner and I'll be pointing my small hash rate towards Ocean. It might take me 18 months to get any significant amount of sats, but I am excited to support what Ocean stands for.

where do the funds lie in the interim? Not sure I understand

If my guess is right, small miners build shares, and when that number crosses a threshold the pool includes the miner in the block reward. That would make sense to me.

That just sounds like custody with extra steps 😁 oh well, roll on lightning integration I guess!