Hi list,
I have a question about how update_fail_htlcs are handled. Consider this scenario: a node, potentially adversarial, forwards an HTLC along a channel that does not have the funds to support a payment of that size. How does the recipient of the HTLC respond? I see this line in BOLT #2: “until the corresponding HTLC is irrevocably committed in both sides' commitment transactions: MUST NOT send an update_fulfill_htlc, update_fail_htlc, or update_fail_malformed_htlc" But this seems confusing to me in the context of the scenario I suggested. Is it saying that even though the channel cannot support the payment, the nodes still need to commit to it? I assume that this interpretation is not correct, but then when is it okay for a node to send an update_fail_htlc? Immediately upon receiving an invalid transaction? Any insight you could provide would be great. Thanks in advance, Ben
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