Thanks for the explanation - very useful and succinct. Could the counterparty risk be mitigated through the use of watchtowers? One lesson I’m taking from this is - don’t put more sats into your lightning channel than you are willing to lose. Makes sense really - in the same way that I don’t carry $x,000s of dollars in cash in my wallet (my dad always did this- I have no idea why). Or how I keep a low balance in the bank account tied to my debit card…