Author: ZmnSCPxj 2019-01-15 12:14:39
Published on: 2019-01-15T12:14:39+00:00
The issue of routing fees in custodial cases has been raised by a member of the group. The question is whether the sender deducts the routing fee from the user account when paying the user-provided invoice. A possible attack on a custodial service is also discussed, whereby an attacker can acquire 1.0BTC in the custodial service and create 100,000,000 invoices of 1 satoshi each on a node they control, with the custodial service paying to the invoices. One solution to this is imposing either a withdrawal limit or a minimum withdrawal amount. However, the custodial service may deduct the routing fees from the user's account, which is also undesirable as routes (and thus fees) are controlled and selected by the sender. The overall consensus is that custodial services cannot be trusted to hold substantial money safely for long anyway, so any UX problems with them are largely immaterial.
Updated on: 2023-06-02T17:05:19.464762+00:00