🔰Hybrid Custody and Security

Assets on Lnfi can be held either under Lnfi's Managed Custody or in users' own self-custodied LN Nodes.

⚡Managed Custody

Lnfi's Managed Custody service, where users' funds are securely stored on Lnfi's Lightning Node, will continue. All funds' movements are trackable and auditable by anyone on the Lnfi to ensure full transparency and uphold highest standards of risk management.

In the future, this service will support Pocket Universe, a system that requires both the node operator and the user to approve any fund movement requests, thereby enhancing security measures and enabling self-custody trading.

⚡Self-Custody with LN Node

Users may set up their own LN Node for a monthly fee to hold their assets. The team will take a multi-pronged approach to enable full self-custody trading for users with LN Node. With LN Node v1, users would have to send assets to and have them held under Lnfi's custody to conduct any trade. With LN Node v2, users would only need to send assets sized according to the order's size by paying a Lightning invoice. Once the order is filled, the resulting assets would be returned to the users' LN Node through a second Lightning invoice i.e. assets of the order's size are only under Lnfi's Managed Custody while the order is opened and remains unfilled. With LN Node v3, full self-custody trading will be enabled i.e. assets do not have to be custodied by Lnfi in the event of a trade.