Custodial wallet is a bank. Why do we call it a wallet? Node on phone is not a node. Why do we call it node?

It is a node though…

It's a big wallet conspiracy man!

If I do not own the seed that those "my" channels are on, then it is not a normal lightning node. It is just a noKYC "custodial lightning wallet" with a gamification element of basic control of channels.

But you do own it.

Apologies if I mislead then. I installed Zeus and it looked like the node is ready for me to upload bitcoin and create channels. I did not go further, because it looked like I will not get the seed. Don't know if this could scare away others, too.

You can get the seed in settings at any time. You are not explicitly prompted to back it up until you have funds