Add message ordering return value to handling channel_reestablish
[rust-lightning] / src / ln / channel.rs
index b59379aa74fdbab50589ad9ba424a17fab916ab4..c53cf2520d6c79a29e5d4144ebb5124e7776a99d 100644 (file)
@@ -14,14 +14,15 @@ use crypto::digest::Digest;
 use crypto::hkdf::{hkdf_extract,hkdf_expand};
 
 use ln::msgs;
-use ln::msgs::{ErrorAction, HandleError, MsgEncodable};
+use ln::msgs::{ErrorAction, HandleError, RAACommitmentOrder};
 use ln::channelmonitor::ChannelMonitor;
-use ln::channelmanager::{PendingHTLCStatus, PendingForwardHTLCInfo, HTLCFailReason, HTLCFailureMsg};
+use ln::channelmanager::{PendingHTLCStatus, HTLCSource, PendingForwardHTLCInfo, HTLCFailReason, HTLCFailureMsg};
 use ln::chan_utils::{TxCreationKeys,HTLCOutputInCommitment,HTLC_SUCCESS_TX_WEIGHT,HTLC_TIMEOUT_TX_WEIGHT};
 use ln::chan_utils;
 use chain::chaininterface::{FeeEstimator,ConfirmationTarget};
 use chain::transaction::OutPoint;
 use util::{transaction_utils,rng};
+use util::ser::Writeable;
 use util::sha2::Sha256;
 use util::logger::Logger;
 use util::errors::APIError;
@@ -43,6 +44,17 @@ pub struct ChannelKeys {
        pub commitment_seed: [u8; 32],
 }
 
+#[cfg(test)]
+pub struct ChannelValueStat {
+       pub value_to_self_msat: u64,
+       pub channel_value_msat: u64,
+       pub channel_reserve_msat: u64,
+       pub pending_outbound_htlcs_amount_msat: u64,
+       pub pending_inbound_htlcs_amount_msat: u64,
+       pub holding_cell_outbound_amount_msat: u64,
+       pub their_max_htlc_value_in_flight_msat: u64, // outgoing
+}
+
 impl ChannelKeys {
        pub fn new_from_seed(seed: &[u8; 32]) -> Result<ChannelKeys, secp256k1::Error> {
                let mut prk = [0; 32];
@@ -86,25 +98,50 @@ impl ChannelKeys {
        }
 }
 
-#[derive(PartialEq)]
-enum HTLCState {
+enum InboundHTLCRemovalReason {
+       FailRelay(msgs::OnionErrorPacket),
+       FailMalformed(([u8; 32], u16)),
+       Fulfill([u8; 32]),
+}
+
+enum InboundHTLCState {
        /// Added by remote, to be included in next local commitment tx.
-       /// Implies HTLCOutput::outbound: false
-       RemoteAnnounced,
+       RemoteAnnounced(PendingHTLCStatus),
        /// Included in a received commitment_signed message (implying we've revoke_and_ack'ed it), but
        /// the remote side hasn't yet revoked their previous state, which we need them to do before we
        /// accept this HTLC. Implies AwaitingRemoteRevoke.
        /// We also have not yet included this HTLC in a commitment_signed message, and are waiting on
        /// a remote revoke_and_ack on a previous state before we can do so.
-       /// Implies HTLCOutput::outbound: false
-       AwaitingRemoteRevokeToAnnounce,
+       AwaitingRemoteRevokeToAnnounce(PendingHTLCStatus),
        /// Included in a received commitment_signed message (implying we've revoke_and_ack'ed it), but
        /// the remote side hasn't yet revoked their previous state, which we need them to do before we
        /// accept this HTLC. Implies AwaitingRemoteRevoke.
        /// We have included this HTLC in our latest commitment_signed and are now just waiting on a
        /// revoke_and_ack.
-       /// Implies HTLCOutput::outbound: true
-       AwaitingAnnouncedRemoteRevoke,
+       AwaitingAnnouncedRemoteRevoke(PendingHTLCStatus),
+       Committed,
+       /// Removed by us and a new commitment_signed was sent (if we were AwaitingRemoteRevoke when we
+       /// created it we would have put it in the holding cell instead). When they next revoke_and_ack
+       /// we'll drop it.
+       /// Note that we have to keep an eye on the HTLC until we've received a broadcastable
+       /// commitment transaction without it as otherwise we'll have to force-close the channel to
+       /// claim it before the timeout (obviously doesn't apply to revoked HTLCs that we can't claim
+       /// anyway). That said, ChannelMonitor does this for us (see
+       /// ChannelMonitor::would_broadcast_at_height) so we actually remove the HTLC from our own
+       /// local state before then, once we're sure that the next commitment_signed and
+       /// ChannelMonitor::provide_latest_local_commitment_tx_info will not include this HTLC.
+       LocalRemoved(InboundHTLCRemovalReason),
+}
+
+struct InboundHTLCOutput {
+       htlc_id: u64,
+       amount_msat: u64,
+       cltv_expiry: u32,
+       payment_hash: [u8; 32],
+       state: InboundHTLCState,
+}
+
+enum OutboundHTLCState {
        /// Added by us and included in a commitment_signed (if we were AwaitingRemoteRevoke when we
        /// created it we would have put it in the holding cell instead). When they next revoke_and_ack
        /// we will promote to Committed (note that they may not accept it until the next time we
@@ -115,65 +152,45 @@ enum HTLCState {
        ///    allowed to remove it, the "can only be removed once committed on both sides" requirement
        ///    doesn't matter to us and its up to them to enforce it, worst-case they jump ahead but
        ///    we'll never get out of sync).
-       /// Implies HTLCOutput::outbound: true
-       LocalAnnounced,
+       /// Note that we Box the OnionPacket as its rather large and we don't want to blow up
+       /// OutboundHTLCOutput's size just for a temporary bit
+       LocalAnnounced(Box<msgs::OnionPacket>),
        Committed,
        /// Remote removed this (outbound) HTLC. We're waiting on their commitment_signed to finalize
        /// the change (though they'll need to revoke before we fail the payment).
-       /// Implies HTLCOutput::outbound: true
        RemoteRemoved,
        /// Remote removed this and sent a commitment_signed (implying we've revoke_and_ack'ed it), but
        /// the remote side hasn't yet revoked their previous state, which we need them to do before we
        /// can do any backwards failing. Implies AwaitingRemoteRevoke.
        /// We also have not yet removed this HTLC in a commitment_signed message, and are waiting on a
        /// remote revoke_and_ack on a previous state before we can do so.
-       /// Implies HTLCOutput::outbound: true
        AwaitingRemoteRevokeToRemove,
        /// Remote removed this and sent a commitment_signed (implying we've revoke_and_ack'ed it), but
        /// the remote side hasn't yet revoked their previous state, which we need them to do before we
        /// can do any backwards failing. Implies AwaitingRemoteRevoke.
        /// We have removed this HTLC in our latest commitment_signed and are now just waiting on a
        /// revoke_and_ack to drop completely.
-       /// Implies HTLCOutput::outbound: true
        AwaitingRemovedRemoteRevoke,
-       /// Removed by us and a new commitment_signed was sent (if we were AwaitingRemoteRevoke when we
-       /// created it we would have put it in the holding cell instead). When they next revoke_and_ack
-       /// we'll promote to LocalRemovedAwaitingCommitment if we fulfilled, otherwise we'll drop at
-       /// that point.
-       /// Note that we have to keep an eye on the HTLC until we've received a broadcastable
-       /// commitment transaction without it as otherwise we'll have to force-close the channel to
-       /// claim it before the timeout (obviously doesn't apply to revoked HTLCs that we can't claim
-       /// anyway).
-       /// Implies HTLCOutput::outbound: false
-       LocalRemoved,
-       /// Removed by us, sent a new commitment_signed and got a revoke_and_ack. Just waiting on an
-       /// updated local commitment transaction. Implies local_removed_fulfilled.
-       /// Implies HTLCOutput::outbound: false
-       LocalRemovedAwaitingCommitment,
 }
 
-struct HTLCOutput { //TODO: Refactor into Outbound/InboundHTLCOutput (will save memory and fewer panics)
-       outbound: bool, // ie to an HTLC-Timeout transaction
+struct OutboundHTLCOutput {
        htlc_id: u64,
        amount_msat: u64,
        cltv_expiry: u32,
        payment_hash: [u8; 32],
-       state: HTLCState,
-       /// If we're in a Remote* removed state, set if they failed, otherwise None
+       state: OutboundHTLCState,
+       source: HTLCSource,
+       /// If we're in a removed state, set if they failed, otherwise None
        fail_reason: Option<HTLCFailReason>,
-       /// If we're in LocalRemoved*, set to true if we fulfilled the HTLC, and can claim money
-       local_removed_fulfilled: bool,
-       /// state pre-committed Remote* implies pending_forward_state, otherwise it must be None
-       pending_forward_state: Option<PendingHTLCStatus>,
 }
 
-impl HTLCOutput {
-       fn get_in_commitment(&self, offered: bool) -> HTLCOutputInCommitment {
+macro_rules! get_htlc_in_commitment {
+       ($htlc: expr, $offered: expr) => {
                HTLCOutputInCommitment {
-                       offered: offered,
-                       amount_msat: self.amount_msat,
-                       cltv_expiry: self.cltv_expiry,
-                       payment_hash: self.payment_hash,
+                       offered: $offered,
+                       amount_msat: $htlc.amount_msat,
+                       cltv_expiry: $htlc.cltv_expiry,
+                       payment_hash: $htlc.payment_hash,
                        transaction_output_index: 0
                }
        }
@@ -186,19 +203,27 @@ enum HTLCUpdateAwaitingACK {
                amount_msat: u64,
                cltv_expiry: u32,
                payment_hash: [u8; 32],
+               source: HTLCSource,
                onion_routing_packet: msgs::OnionPacket,
                time_created: Instant, //TODO: Some kind of timeout thing-a-majig
        },
        ClaimHTLC {
                payment_preimage: [u8; 32],
-               payment_hash: [u8; 32], // Only here for effecient duplicate detection
+               htlc_id: u64,
        },
        FailHTLC {
-               payment_hash: [u8; 32],
+               htlc_id: u64,
                err_packet: msgs::OnionErrorPacket,
        },
 }
 
+/// There are a few "states" and then a number of flags which can be applied:
+/// We first move through init with OurInitSent -> TheirInitSent -> FundingCreated -> FundingSent.
+/// TheirFundingLocked and OurFundingLocked then get set on FundingSent, and when both are set we
+/// move on to ChannelFunded.
+/// Note that PeerDisconnected can be set on both ChannelFunded and FundingSent.
+/// ChannelFunded can then get all remaining flags set on it, until we finish shutdown, then we
+/// move on to ShutdownComplete, at which point most calls into this channel are disallowed.
 enum ChannelState {
        /// Implies we have (or are prepared to) send our open_channel/accept_channel message
        OurInitSent = (1 << 0),
@@ -219,33 +244,40 @@ enum ChannelState {
        /// Once both TheirFundingLocked and OurFundingLocked are set, state moves on to ChannelFunded.
        OurFundingLocked = (1 << 5),
        ChannelFunded = 64,
+       /// Flag which is set on ChannelFunded and FundingSent indicating remote side is considered
+       /// "disconnected" and no updates are allowed until after we've done a channel_reestablish
+       /// dance.
+       PeerDisconnected = (1 << 7),
        /// Flag which implies that we have sent a commitment_signed but are awaiting the responding
        /// revoke_and_ack message. During this time period, we can't generate new commitment_signed
        /// messages as then we will be unable to determine which HTLCs they included in their
        /// revoke_and_ack implicit ACK, so instead we have to hold them away temporarily to be sent
        /// later.
        /// Flag is set on ChannelFunded.
-       AwaitingRemoteRevoke = (1 << 7),
+       AwaitingRemoteRevoke = (1 << 8),
        /// Flag which is set on ChannelFunded or FundingSent after receiving a shutdown message from
        /// the remote end. If set, they may not add any new HTLCs to the channel, and we are expected
        /// to respond with our own shutdown message when possible.
-       RemoteShutdownSent = (1 << 8),
+       RemoteShutdownSent = (1 << 9),
        /// Flag which is set on ChannelFunded or FundingSent after sending a shutdown message. At this
        /// point, we may not add any new HTLCs to the channel.
        /// TODO: Investigate some kind of timeout mechanism by which point the remote end must provide
        /// us their shutdown.
-       LocalShutdownSent = (1 << 9),
+       LocalShutdownSent = (1 << 10),
        /// We've successfully negotiated a closing_signed dance. At this point ChannelManager is about
        /// to drop us, but we store this anyway.
-       ShutdownComplete = (1 << 10),
+       ShutdownComplete = 2048,
 }
 const BOTH_SIDES_SHUTDOWN_MASK: u32 = (ChannelState::LocalShutdownSent as u32 | ChannelState::RemoteShutdownSent as u32);
+const MULTI_STATE_FLAGS: u32 = (BOTH_SIDES_SHUTDOWN_MASK | ChannelState::PeerDisconnected as u32);
+
+const INITIAL_COMMITMENT_NUMBER: u64 = (1 << 48) - 1;
 
 // TODO: We should refactor this to be an Inbound/OutboundChannel until initial setup handshaking
 // has been completed, and then turn into a Channel to get compiler-time enforcement of things like
 // calling channel_id() before we're set up or things like get_outbound_funding_signed on an
 // inbound channel.
-pub struct Channel {
+pub(super) struct Channel {
        user_id: u64,
 
        channel_id: [u8; 32],
@@ -264,13 +296,39 @@ pub struct Channel {
        cur_local_commitment_transaction_number: u64,
        cur_remote_commitment_transaction_number: u64,
        value_to_self_msat: u64, // Excluding all pending_htlcs, excluding fees
-       pending_htlcs: Vec<HTLCOutput>,
+       pending_inbound_htlcs: Vec<InboundHTLCOutput>,
+       pending_outbound_htlcs: Vec<OutboundHTLCOutput>,
        holding_cell_htlc_updates: Vec<HTLCUpdateAwaitingACK>,
+
+       // pending_update_fee is filled when sending and receiving update_fee
+       // For outbound channel, feerate_per_kw is updated with the value from
+       // pending_update_fee when revoke_and_ack is received
+       //
+       // For inbound channel, feerate_per_kw is updated when it receives
+       // commitment_signed and revoke_and_ack is generated
+       // The pending value is kept when another pair of update_fee and commitment_signed
+       // is received during AwaitingRemoteRevoke and relieved when the expected
+       // revoke_and_ack is received and new commitment_signed is generated to be
+       // sent to the funder. Otherwise, the pending value is removed when receiving
+       // commitment_signed.
+       pending_update_fee: Option<u64>,
+       // update_fee() during ChannelState::AwaitingRemoteRevoke is hold in
+       // holdina_cell_update_fee then moved to pending_udpate_fee when revoke_and_ack
+       // is received. holding_cell_update_fee is updated when there are additional
+       // update_fee() during ChannelState::AwaitingRemoteRevoke.
+       holding_cell_update_fee: Option<u64>,
        next_local_htlc_id: u64,
        next_remote_htlc_id: u64,
        channel_update_count: u32,
        feerate_per_kw: u64,
 
+       #[cfg(debug_assertions)]
+       /// Max to_local and to_remote outputs in a locally-generated commitment transaction
+       max_commitment_tx_output_local: ::std::sync::Mutex<(u64, u64)>,
+       #[cfg(debug_assertions)]
+       /// Max to_local and to_remote outputs in a remote-generated commitment transaction
+       max_commitment_tx_output_remote: ::std::sync::Mutex<(u64, u64)>,
+
        #[cfg(test)]
        // Used in ChannelManager's tests to send a revoked transaction
        pub last_local_commitment_txn: Vec<Transaction>,
@@ -293,6 +351,7 @@ pub struct Channel {
        our_dust_limit_satoshis: u64,
        their_max_htlc_value_in_flight_msat: u64,
        //get_our_max_htlc_value_in_flight_msat(): u64,
+       /// minimum channel reserve for **self** to maintain - set by them.
        their_channel_reserve_satoshis: u64,
        //get_our_channel_reserve_satoshis(): u64,
        their_htlc_minimum_msat: u64,
@@ -337,19 +396,26 @@ const B_OUTPUT_PLUS_SPENDING_INPUT_WEIGHT: u64 = 104; // prevout: 40, nSequence:
 /// it's 2^24.
 pub const MAX_FUNDING_SATOSHIS: u64 = (1 << 24);
 
+/// Used to return a simple Error back to ChannelManager. Will get converted to a
+/// msgs::ErrorAction::SendErrorMessage or msgs::ErrorAction::IgnoreError as appropriate with our
+/// channel_id in ChannelManager.
+pub(super) enum ChannelError {
+       Ignore(&'static str),
+       Close(&'static str),
+}
+
 macro_rules! secp_call {
-       ( $res: expr, $err: expr ) => {
+       ( $res: expr, $err: expr, $chan_id: expr ) => {
                match $res {
                        Ok(key) => key,
-                       //TODO: make the error a parameter
-                       Err(_) => return Err(HandleError{err: $err, action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })})
+                       Err(_) => return Err(HandleError {err: $err, action: Some(msgs::ErrorAction::SendErrorMessage {msg: msgs::ErrorMessage {channel_id: $chan_id, data: $err.to_string()}})})
                }
        };
 }
 
 macro_rules! secp_derived_key {
-       ( $res: expr ) => {
-               secp_call!($res, "Derived invalid key, peer is maliciously selecting parameters")
+       ( $res: expr, $chan_id: expr ) => {
+               secp_call!($res, "Derived invalid key, peer is maliciously selecting parameters", $chan_id)
        }
 }
 impl Channel {
@@ -358,6 +424,8 @@ impl Channel {
                channel_value_satoshis * 1000 / 10 //TODO
        }
 
+       /// Returns a minimum channel reserve value **they** need to maintain
+       ///
        /// Guaranteed to return a value no larger than channel_value_satoshis
        fn get_our_channel_reserve_satoshis(channel_value_satoshis: u64) -> u64 {
                let (q, _) = channel_value_satoshis.overflowing_div(100);
@@ -421,15 +489,23 @@ impl Channel {
                        channel_value_satoshis: channel_value_satoshis,
 
                        local_keys: chan_keys,
-                       cur_local_commitment_transaction_number: (1 << 48) - 1,
-                       cur_remote_commitment_transaction_number: (1 << 48) - 1,
+                       cur_local_commitment_transaction_number: INITIAL_COMMITMENT_NUMBER,
+                       cur_remote_commitment_transaction_number: INITIAL_COMMITMENT_NUMBER,
                        value_to_self_msat: channel_value_satoshis * 1000 - push_msat,
-                       pending_htlcs: Vec::new(),
+                       pending_inbound_htlcs: Vec::new(),
+                       pending_outbound_htlcs: Vec::new(),
                        holding_cell_htlc_updates: Vec::new(),
+                       pending_update_fee: None,
+                       holding_cell_update_fee: None,
                        next_local_htlc_id: 0,
                        next_remote_htlc_id: 0,
                        channel_update_count: 1,
 
+                       #[cfg(debug_assertions)]
+                       max_commitment_tx_output_local: ::std::sync::Mutex::new((channel_value_satoshis * 1000 - push_msat, push_msat)),
+                       #[cfg(debug_assertions)]
+                       max_commitment_tx_output_remote: ::std::sync::Mutex::new((channel_value_satoshis * 1000 - push_msat, push_msat)),
+
                        last_local_commitment_txn: Vec::new(),
 
                        last_sent_closing_fee: None,
@@ -467,68 +543,58 @@ impl Channel {
                })
        }
 
-       fn check_remote_fee(fee_estimator: &FeeEstimator, feerate_per_kw: u32) -> Result<(), HandleError> {
+       fn check_remote_fee(fee_estimator: &FeeEstimator, feerate_per_kw: u32) -> Result<(), ChannelError> {
                if (feerate_per_kw as u64) < fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Background) {
-                       return Err(HandleError{err: "Peer's feerate much too low", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+                       return Err(ChannelError::Close("Peer's feerate much too low"));
                }
                if (feerate_per_kw as u64) > fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::HighPriority) * 2 {
-                       return Err(HandleError{err: "Peer's feerate much too high", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+                       return Err(ChannelError::Close("Peer's feerate much too high"));
                }
                Ok(())
        }
 
        /// Creates a new channel from a remote sides' request for one.
        /// Assumes chain_hash has already been checked and corresponds with what we expect!
-       /// Generally prefers to take the DisconnectPeer action on failure, as a notice to the sender
-       /// that we're rejecting the new channel.
-       pub fn new_from_req(fee_estimator: &FeeEstimator, chan_keys: ChannelKeys, their_node_id: PublicKey, msg: &msgs::OpenChannel, user_id: u64, require_announce: bool, allow_announce: bool, logger: Arc<Logger>) -> Result<Channel, HandleError> {
-               macro_rules! return_error_message {
-                       ( $msg: expr ) => {
-                               return Err(HandleError{err: $msg, action: Some(msgs::ErrorAction::SendErrorMessage{ msg: msgs::ErrorMessage { channel_id: msg.temporary_channel_id, data: $msg.to_string() }})});
-                       }
-               }
-
+       pub fn new_from_req(fee_estimator: &FeeEstimator, chan_keys: ChannelKeys, their_node_id: PublicKey, msg: &msgs::OpenChannel, user_id: u64, require_announce: bool, allow_announce: bool, logger: Arc<Logger>) -> Result<Channel, ChannelError> {
                // Check sanity of message fields:
                if msg.funding_satoshis >= MAX_FUNDING_SATOSHIS {
-                       return_error_message!("funding value > 2^24");
+                       return Err(ChannelError::Close("funding value > 2^24"));
                }
                if msg.channel_reserve_satoshis > msg.funding_satoshis {
-                       return_error_message!("Bogus channel_reserve_satoshis");
+                       return Err(ChannelError::Close("Bogus channel_reserve_satoshis"));
                }
                if msg.push_msat > (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000 {
-                       return_error_message!("push_msat larger than funding value");
+                       return Err(ChannelError::Close("push_msat larger than funding value"));
                }
                if msg.dust_limit_satoshis > msg.funding_satoshis {
-                       return_error_message!("Peer never wants payout outputs?");
+                       return Err(ChannelError::Close("Peer never wants payout outputs?"));
                }
                if msg.dust_limit_satoshis > msg.channel_reserve_satoshis {
-                       return_error_message!("Bogus; channel reserve is less than dust limit");
+                       return Err(ChannelError::Close("Bogus; channel reserve is less than dust limit"));
                }
                if msg.htlc_minimum_msat >= (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000 {
-                       return_error_message!("Miminum htlc value is full channel value");
+                       return Err(ChannelError::Close("Miminum htlc value is full channel value"));
                }
-               Channel::check_remote_fee(fee_estimator, msg.feerate_per_kw).map_err(|e|
-                       HandleError{err: e.err, action: Some(msgs::ErrorAction::SendErrorMessage{ msg: msgs::ErrorMessage { channel_id: msg.temporary_channel_id, data: e.err.to_string() }})}
-               )?;
+               Channel::check_remote_fee(fee_estimator, msg.feerate_per_kw)?;
 
                if msg.to_self_delay > MAX_LOCAL_BREAKDOWN_TIMEOUT {
-                       return_error_message!("They wanted our payments to be delayed by a needlessly long period");
+                       return Err(ChannelError::Close("They wanted our payments to be delayed by a needlessly long period"));
                }
                if msg.max_accepted_htlcs < 1 {
-                       return_error_message!("0 max_accpted_htlcs makes for a useless channel");
+                       return Err(ChannelError::Close("0 max_accpted_htlcs makes for a useless channel"));
                }
                if msg.max_accepted_htlcs > 483 {
-                       return_error_message!("max_accpted_htlcs > 483");
+                       return Err(ChannelError::Close("max_accpted_htlcs > 483"));
                }
 
                // Convert things into internal flags and prep our state:
 
                let their_announce = if (msg.channel_flags & 1) == 1 { true } else { false };
                if require_announce && !their_announce {
-                       return Err(HandleError{err: "Peer tried to open unannounced channel, but we require public ones", action: Some(msgs::ErrorAction::IgnoreError) });
+                       return Err(ChannelError::Close("Peer tried to open unannounced channel, but we require public ones"));
                }
                if !allow_announce && their_announce {
-                       return Err(HandleError{err: "Peer tried to open announced channel, but we require private ones", action: Some(msgs::ErrorAction::IgnoreError) });
+                       return Err(ChannelError::Close("Peer tried to open announced channel, but we require private ones"));
                }
 
                let background_feerate = fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Background);
@@ -536,26 +602,26 @@ impl Channel {
                let our_dust_limit_satoshis = Channel::derive_our_dust_limit_satoshis(background_feerate);
                let our_channel_reserve_satoshis = Channel::get_our_channel_reserve_satoshis(msg.funding_satoshis);
                if our_channel_reserve_satoshis < our_dust_limit_satoshis {
-                       return_error_message!("Suitalbe channel reserve not found. aborting");
+                       return Err(ChannelError::Close("Suitalbe channel reserve not found. aborting"));
                }
                if msg.channel_reserve_satoshis < our_dust_limit_satoshis {
-                       return_error_message!("channel_reserve_satoshis too small");
+                       return Err(ChannelError::Close("channel_reserve_satoshis too small"));
                }
                if our_channel_reserve_satoshis < msg.dust_limit_satoshis {
-                       return_error_message!("Dust limit too high for our channel reserve");
+                       return Err(ChannelError::Close("Dust limit too high for our channel reserve"));
                }
 
                // check if the funder's amount for the initial commitment tx is sufficient
                // for full fee payment
                let funders_amount_msat = msg.funding_satoshis * 1000 - msg.push_msat;
                if funders_amount_msat < background_feerate * COMMITMENT_TX_BASE_WEIGHT {
-                       return_error_message!("Insufficient funding amount for initial commitment");
+                       return Err(ChannelError::Close("Insufficient funding amount for initial commitment"));
                }
 
                let to_local_msat = msg.push_msat;
                let to_remote_msat = funders_amount_msat - background_feerate * COMMITMENT_TX_BASE_WEIGHT;
                if to_local_msat <= msg.channel_reserve_satoshis * 1000 && to_remote_msat <= our_channel_reserve_satoshis * 1000 {
-                       return_error_message!("Insufficient funding amount for initial commitment");
+                       return Err(ChannelError::Close("Insufficient funding amount for initial commitment"));
                }
 
                let secp_ctx = Secp256k1::new();
@@ -565,7 +631,7 @@ impl Channel {
                                                              &PublicKey::from_secret_key(&secp_ctx, &chan_keys.delayed_payment_base_key),
                                                              &chan_keys.htlc_base_key,
                                                              BREAKDOWN_TIMEOUT, our_channel_monitor_claim_script);
-               channel_monitor.set_their_htlc_base_key(&msg.htlc_basepoint);
+               channel_monitor.set_their_base_keys(&msg.htlc_basepoint, &msg.delayed_payment_basepoint);
                channel_monitor.set_their_to_self_delay(msg.to_self_delay);
 
                let mut chan = Channel {
@@ -578,15 +644,23 @@ impl Channel {
                        announce_publicly: their_announce,
 
                        local_keys: chan_keys,
-                       cur_local_commitment_transaction_number: (1 << 48) - 1,
-                       cur_remote_commitment_transaction_number: (1 << 48) - 1,
+                       cur_local_commitment_transaction_number: INITIAL_COMMITMENT_NUMBER,
+                       cur_remote_commitment_transaction_number: INITIAL_COMMITMENT_NUMBER,
                        value_to_self_msat: msg.push_msat,
-                       pending_htlcs: Vec::new(),
+                       pending_inbound_htlcs: Vec::new(),
+                       pending_outbound_htlcs: Vec::new(),
                        holding_cell_htlc_updates: Vec::new(),
+                       pending_update_fee: None,
+                       holding_cell_update_fee: None,
                        next_local_htlc_id: 0,
                        next_remote_htlc_id: 0,
                        channel_update_count: 1,
 
+                       #[cfg(debug_assertions)]
+                       max_commitment_tx_output_local: ::std::sync::Mutex::new((msg.push_msat, msg.funding_satoshis * 1000 - msg.push_msat)),
+                       #[cfg(debug_assertions)]
+                       max_commitment_tx_output_remote: ::std::sync::Mutex::new((msg.push_msat, msg.funding_satoshis * 1000 - msg.push_msat)),
+
                        last_local_commitment_txn: Vec::new(),
 
                        last_sent_closing_fee: None,
@@ -675,8 +749,8 @@ impl Channel {
        /// generated by the peer which proposed adding the HTLCs, and thus we need to understand both
        /// which peer generated this transaction and "to whom" this transaction flows.
        #[inline]
-       fn build_commitment_transaction(&self, commitment_number: u64, keys: &TxCreationKeys, local: bool, generated_by_local: bool) -> (Transaction, Vec<HTLCOutputInCommitment>) {
-               let obscured_commitment_transaction_number = self.get_commitment_transaction_number_obscure_factor() ^ (0xffffffffffff - commitment_number);
+       fn build_commitment_transaction(&self, commitment_number: u64, keys: &TxCreationKeys, local: bool, generated_by_local: bool, feerate_per_kw: u64) -> (Transaction, Vec<HTLCOutputInCommitment>) {
+               let obscured_commitment_transaction_number = self.get_commitment_transaction_number_obscure_factor() ^ (INITIAL_COMMITMENT_NUMBER - commitment_number);
 
                let txins = {
                        let mut ins: Vec<TxIn> = Vec::new();
@@ -689,79 +763,117 @@ impl Channel {
                        ins
                };
 
-               let mut txouts: Vec<(TxOut, Option<HTLCOutputInCommitment>)> = Vec::with_capacity(self.pending_htlcs.len() + 2);
+               let mut txouts: Vec<(TxOut, Option<HTLCOutputInCommitment>)> = Vec::with_capacity(self.pending_inbound_htlcs.len() + self.pending_outbound_htlcs.len() + 2);
 
                let dust_limit_satoshis = if local { self.our_dust_limit_satoshis } else { self.their_dust_limit_satoshis };
                let mut remote_htlc_total_msat = 0;
                let mut local_htlc_total_msat = 0;
                let mut value_to_self_msat_offset = 0;
 
-               for ref htlc in self.pending_htlcs.iter() {
-                       let include = match htlc.state {
-                               HTLCState::RemoteAnnounced => !generated_by_local,
-                               HTLCState::AwaitingRemoteRevokeToAnnounce => !generated_by_local,
-                               HTLCState::AwaitingAnnouncedRemoteRevoke => true,
-                               HTLCState::LocalAnnounced => generated_by_local,
-                               HTLCState::Committed => true,
-                               HTLCState::RemoteRemoved => generated_by_local,
-                               HTLCState::AwaitingRemoteRevokeToRemove => generated_by_local,
-                               HTLCState::AwaitingRemovedRemoteRevoke => false,
-                               HTLCState::LocalRemoved => !generated_by_local,
-                               HTLCState::LocalRemovedAwaitingCommitment => false,
-                       };
-
-                       if include {
-                               if htlc.outbound == local { // "offered HTLC output"
-                                       if htlc.amount_msat / 1000 >= dust_limit_satoshis + (self.feerate_per_kw * HTLC_TIMEOUT_TX_WEIGHT / 1000) {
-                                               let htlc_in_tx = htlc.get_in_commitment(true);
+               macro_rules! add_htlc_output {
+                       ($htlc: expr, $outbound: expr) => {
+                               if $outbound == local { // "offered HTLC output"
+                                       if $htlc.amount_msat / 1000 >= dust_limit_satoshis + (feerate_per_kw * HTLC_TIMEOUT_TX_WEIGHT / 1000) {
+                                               let htlc_in_tx = get_htlc_in_commitment!($htlc, true);
                                                txouts.push((TxOut {
                                                        script_pubkey: chan_utils::get_htlc_redeemscript(&htlc_in_tx, &keys).to_v0_p2wsh(),
-                                                       value: htlc.amount_msat / 1000
+                                                       value: $htlc.amount_msat / 1000
                                                }, Some(htlc_in_tx)));
                                        }
                                } else {
-                                       if htlc.amount_msat / 1000 >= dust_limit_satoshis + (self.feerate_per_kw * HTLC_SUCCESS_TX_WEIGHT / 1000) {
-                                               let htlc_in_tx = htlc.get_in_commitment(false);
+                                       if $htlc.amount_msat / 1000 >= dust_limit_satoshis + (feerate_per_kw * HTLC_SUCCESS_TX_WEIGHT / 1000) {
+                                               let htlc_in_tx = get_htlc_in_commitment!($htlc, false);
                                                txouts.push((TxOut { // "received HTLC output"
                                                        script_pubkey: chan_utils::get_htlc_redeemscript(&htlc_in_tx, &keys).to_v0_p2wsh(),
-                                                       value: htlc.amount_msat / 1000
+                                                       value: $htlc.amount_msat / 1000
                                                }, Some(htlc_in_tx)));
                                        }
-                               };
-                               if htlc.outbound {
-                                       local_htlc_total_msat += htlc.amount_msat;
-                               } else {
-                                       remote_htlc_total_msat += htlc.amount_msat;
                                }
+                       }
+               }
+
+               for ref htlc in self.pending_inbound_htlcs.iter() {
+                       let include = match htlc.state {
+                               InboundHTLCState::RemoteAnnounced(_) => !generated_by_local,
+                               InboundHTLCState::AwaitingRemoteRevokeToAnnounce(_) => !generated_by_local,
+                               InboundHTLCState::AwaitingAnnouncedRemoteRevoke(_) => true,
+                               InboundHTLCState::Committed => true,
+                               InboundHTLCState::LocalRemoved(_) => !generated_by_local,
+                       };
+
+                       if include {
+                               add_htlc_output!(htlc, false);
+                               remote_htlc_total_msat += htlc.amount_msat;
+                       } else {
+                               match &htlc.state {
+                                       &InboundHTLCState::LocalRemoved(ref reason) => {
+                                               if generated_by_local {
+                                                       if let &InboundHTLCRemovalReason::Fulfill(_) = reason {
+                                                               value_to_self_msat_offset += htlc.amount_msat as i64;
+                                                       }
+                                               }
+                                       },
+                                       _ => {},
+                               }
+                       }
+               }
+
+               for ref htlc in self.pending_outbound_htlcs.iter() {
+                       let include = match htlc.state {
+                               OutboundHTLCState::LocalAnnounced(_) => generated_by_local,
+                               OutboundHTLCState::Committed => true,
+                               OutboundHTLCState::RemoteRemoved => generated_by_local,
+                               OutboundHTLCState::AwaitingRemoteRevokeToRemove => generated_by_local,
+                               OutboundHTLCState::AwaitingRemovedRemoteRevoke => false,
+                       };
+
+                       if include {
+                               add_htlc_output!(htlc, true);
+                               local_htlc_total_msat += htlc.amount_msat;
                        } else {
                                match htlc.state {
-                                       HTLCState::AwaitingRemoteRevokeToRemove|HTLCState::AwaitingRemovedRemoteRevoke => {
+                                       OutboundHTLCState::AwaitingRemoteRevokeToRemove|OutboundHTLCState::AwaitingRemovedRemoteRevoke => {
                                                if htlc.fail_reason.is_none() {
                                                        value_to_self_msat_offset -= htlc.amount_msat as i64;
                                                }
                                        },
-                                       HTLCState::RemoteRemoved => {
+                                       OutboundHTLCState::RemoteRemoved => {
                                                if !generated_by_local && htlc.fail_reason.is_none() {
                                                        value_to_self_msat_offset -= htlc.amount_msat as i64;
                                                }
                                        },
-                                       HTLCState::LocalRemoved => {
-                                               if generated_by_local && htlc.local_removed_fulfilled {
-                                                       value_to_self_msat_offset += htlc.amount_msat as i64;
-                                               }
-                                       },
-                                       HTLCState::LocalRemovedAwaitingCommitment => {
-                                               assert!(htlc.local_removed_fulfilled);
-                                               value_to_self_msat_offset += htlc.amount_msat as i64;
-                                       },
                                        _ => {},
                                }
                        }
                }
 
-               let total_fee: u64 = self.feerate_per_kw * (COMMITMENT_TX_BASE_WEIGHT + (txouts.len() as u64) * COMMITMENT_TX_WEIGHT_PER_HTLC) / 1000;
-               let value_to_self: i64 = ((self.value_to_self_msat - local_htlc_total_msat) as i64 + value_to_self_msat_offset) / 1000 - if self.channel_outbound { total_fee as i64 } else { 0 };
-               let value_to_remote: i64 = (((self.channel_value_satoshis * 1000 - self.value_to_self_msat - remote_htlc_total_msat) as i64 - value_to_self_msat_offset) / 1000) - if self.channel_outbound { 0 } else { total_fee as i64 };
+
+               let value_to_self_msat: i64 = (self.value_to_self_msat - local_htlc_total_msat) as i64 + value_to_self_msat_offset;
+               let value_to_remote_msat: i64 = (self.channel_value_satoshis * 1000 - self.value_to_self_msat - remote_htlc_total_msat) as i64 - value_to_self_msat_offset;
+
+               #[cfg(debug_assertions)]
+               {
+                       // Make sure that the to_self/to_remote is always either past the appropriate
+                       // channel_reserve *or* it is making progress towards it.
+                       // TODO: This should happen after fee calculation, but we don't handle that correctly
+                       // yet!
+                       let mut max_commitment_tx_output = if generated_by_local {
+                               self.max_commitment_tx_output_local.lock().unwrap()
+                       } else {
+                               self.max_commitment_tx_output_remote.lock().unwrap()
+                       };
+                       debug_assert!(max_commitment_tx_output.0 <= value_to_self_msat as u64 || value_to_self_msat / 1000 >= self.their_channel_reserve_satoshis as i64);
+                       max_commitment_tx_output.0 = cmp::max(max_commitment_tx_output.0, value_to_self_msat as u64);
+                       debug_assert!(max_commitment_tx_output.1 <= value_to_remote_msat as u64 || value_to_remote_msat / 1000 >= Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis) as i64);
+                       max_commitment_tx_output.1 = cmp::max(max_commitment_tx_output.1, value_to_remote_msat as u64);
+               }
+
+               let total_fee: u64 = feerate_per_kw * (COMMITMENT_TX_BASE_WEIGHT + (txouts.len() as u64) * COMMITMENT_TX_WEIGHT_PER_HTLC) / 1000;
+               let (value_to_self, value_to_remote) = if self.channel_outbound {
+                       (value_to_self_msat / 1000 - total_fee as i64, value_to_remote_msat / 1000)
+               } else {
+                       (value_to_self_msat / 1000, value_to_remote_msat / 1000 - total_fee as i64)
+               };
 
                let value_to_a = if local { value_to_self } else { value_to_remote };
                let value_to_b = if local { value_to_remote } else { value_to_self };
@@ -828,7 +940,8 @@ impl Channel {
                        ins
                };
 
-               assert!(self.pending_htlcs.is_empty());
+               assert!(self.pending_inbound_htlcs.is_empty());
+               assert!(self.pending_outbound_htlcs.is_empty());
                let mut txouts: Vec<(TxOut, ())> = Vec::new();
 
                let mut total_fee_satoshis = proposed_total_fee_satoshis;
@@ -883,7 +996,7 @@ impl Channel {
                let delayed_payment_base = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key);
                let htlc_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key);
 
-               Ok(secp_derived_key!(TxCreationKeys::new(&self.secp_ctx, &per_commitment_point, &delayed_payment_base, &htlc_basepoint, &self.their_revocation_basepoint.unwrap(), &self.their_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap())))
+               Ok(secp_derived_key!(TxCreationKeys::new(&self.secp_ctx, &per_commitment_point, &delayed_payment_base, &htlc_basepoint, &self.their_revocation_basepoint.unwrap(), &self.their_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap()), self.channel_id()))
        }
 
        #[inline]
@@ -896,15 +1009,16 @@ impl Channel {
                let revocation_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key);
                let htlc_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key);
 
-               Ok(secp_derived_key!(TxCreationKeys::new(&self.secp_ctx, &self.their_cur_commitment_point.unwrap(), &self.their_delayed_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap(), &revocation_basepoint, &payment_basepoint, &htlc_basepoint)))
+               Ok(secp_derived_key!(TxCreationKeys::new(&self.secp_ctx, &self.their_cur_commitment_point.unwrap(), &self.their_delayed_payment_basepoint.unwrap(), &self.their_htlc_basepoint.unwrap(), &revocation_basepoint, &payment_basepoint, &htlc_basepoint), self.channel_id()))
        }
 
        /// Gets the redeemscript for the funding transaction output (ie the funding transaction output
        /// pays to get_funding_redeemscript().to_v0_p2wsh()).
+       /// Panics if called before accept_channel/new_from_req
        pub fn get_funding_redeemscript(&self) -> Script {
                let builder = Builder::new().push_opcode(opcodes::All::OP_PUSHNUM_2);
                let our_funding_key = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key).serialize();
-               let their_funding_key = self.their_funding_pubkey.unwrap().serialize();
+               let their_funding_key = self.their_funding_pubkey.expect("get_funding_redeemscript only allowed after accept_channel").serialize();
                if our_funding_key[..] < their_funding_key[..] {
                        builder.push_slice(&our_funding_key)
                                .push_slice(&their_funding_key)
@@ -949,8 +1063,8 @@ impl Channel {
        /// Builds the htlc-success or htlc-timeout transaction which spends a given HTLC output
        /// @local is used only to convert relevant internal structures which refer to remote vs local
        /// to decide value of outputs and direction of HTLCs.
-       fn build_htlc_transaction(&self, prev_hash: &Sha256dHash, htlc: &HTLCOutputInCommitment, local: bool, keys: &TxCreationKeys) -> Transaction {
-               chan_utils::build_htlc_transaction(prev_hash, self.feerate_per_kw, if local { self.their_to_self_delay } else { BREAKDOWN_TIMEOUT }, htlc, &keys.a_delayed_payment_key, &keys.revocation_key)
+       fn build_htlc_transaction(&self, prev_hash: &Sha256dHash, htlc: &HTLCOutputInCommitment, local: bool, keys: &TxCreationKeys, feerate_per_kw: u64) -> Transaction {
+               chan_utils::build_htlc_transaction(prev_hash, feerate_per_kw, if local { self.their_to_self_delay } else { BREAKDOWN_TIMEOUT }, htlc, &keys.a_delayed_payment_key, &keys.revocation_key)
        }
 
        fn create_htlc_tx_signature(&self, tx: &Transaction, htlc: &HTLCOutputInCommitment, keys: &TxCreationKeys) -> Result<(Script, Signature, bool), HandleError> {
@@ -960,7 +1074,7 @@ impl Channel {
 
                let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &keys);
 
-               let our_htlc_key = secp_derived_key!(chan_utils::derive_private_key(&self.secp_ctx, &keys.per_commitment_point, &self.local_keys.htlc_base_key));
+               let our_htlc_key = secp_derived_key!(chan_utils::derive_private_key(&self.secp_ctx, &keys.per_commitment_point, &self.local_keys.htlc_base_key), self.channel_id());
                let sighash = Message::from_slice(&bip143::SighashComponents::new(&tx).sighash_all(&tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
                let is_local_tx = PublicKey::from_secret_key(&self.secp_ctx, &our_htlc_key) == keys.a_htlc_key;
                Ok((htlc_redeemscript, self.secp_ctx.sign(&sighash, &our_htlc_key), is_local_tx))
@@ -1001,7 +1115,9 @@ impl Channel {
                Ok(our_sig)
        }
 
-       fn get_update_fulfill_htlc(&mut self, payment_preimage_arg: [u8; 32]) -> Result<(Option<msgs::UpdateFulfillHTLC>, Option<ChannelMonitor>), HandleError> {
+       /// May return an IgnoreError, but should not, and will always return Ok(_) when
+       /// debug_assertions are turned on
+       fn get_update_fulfill_htlc(&mut self, htlc_id_arg: u64, payment_preimage_arg: [u8; 32]) -> Result<(Option<msgs::UpdateFulfillHTLC>, Option<ChannelMonitor>), HandleError> {
                // Either ChannelFunded got set (which means it wont bet unset) or there is no way any
                // caller thought we could have something claimed (cause we wouldn't have accepted in an
                // incoming HTLC anyway). If we got to ShutdownComplete, callers aren't allowed to call us,
@@ -1017,20 +1133,21 @@ impl Channel {
                sha.result(&mut payment_hash_calc);
 
                let mut pending_idx = std::usize::MAX;
-               for (idx, htlc) in self.pending_htlcs.iter().enumerate() {
-                       if !htlc.outbound && htlc.payment_hash == payment_hash_calc &&
-                                       htlc.state != HTLCState::LocalRemoved && htlc.state != HTLCState::LocalRemovedAwaitingCommitment {
-                               if let Some(PendingHTLCStatus::Fail(_)) = htlc.pending_forward_state {
+               for (idx, htlc) in self.pending_inbound_htlcs.iter().enumerate() {
+                       if htlc.htlc_id == htlc_id_arg {
+                               assert_eq!(htlc.payment_hash, payment_hash_calc);
+                               if let InboundHTLCState::Committed = htlc.state {
                                } else {
-                                       if pending_idx != std::usize::MAX {
-                                               panic!("Duplicate HTLC payment_hash, ChannelManager should have prevented this!");
-                                       }
-                                       pending_idx = idx;
+                                       debug_assert!(false, "Have an inbound HTLC we tried to claim before it was fully committed to");
+                                       // Don't return in release mode here so that we can update channel_monitor
                                }
+                               pending_idx = idx;
+                               break;
                        }
                }
                if pending_idx == std::usize::MAX {
-                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given payment preimage", action: None});
+                       debug_assert!(false, "Unable to find a pending HTLC which matched the given HTLC ID");
+                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
                }
 
                // Now update local state:
@@ -1039,57 +1156,49 @@ impl Channel {
                // can claim it even if the channel hits the chain before we see their next commitment.
                self.channel_monitor.provide_payment_preimage(&payment_hash_calc, &payment_preimage_arg);
 
-               if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == (ChannelState::AwaitingRemoteRevoke as u32) {
+               if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32 | ChannelState::PeerDisconnected as u32)) != 0 {
                        for pending_update in self.holding_cell_htlc_updates.iter() {
                                match pending_update {
-                                       &HTLCUpdateAwaitingACK::ClaimHTLC { ref payment_preimage, .. } => {
-                                               if payment_preimage_arg == *payment_preimage {
+                                       &HTLCUpdateAwaitingACK::ClaimHTLC { htlc_id, .. } => {
+                                               if htlc_id_arg == htlc_id {
+                                                       debug_assert!(false, "Tried to fulfill an HTLC we already had a pending fulfill for");
                                                        return Ok((None, None));
                                                }
                                        },
-                                       &HTLCUpdateAwaitingACK::FailHTLC { ref payment_hash, .. } => {
-                                               if payment_hash_calc == *payment_hash {
-                                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given payment preimage", action: None});
+                                       &HTLCUpdateAwaitingACK::FailHTLC { htlc_id, .. } => {
+                                               if htlc_id_arg == htlc_id {
+                                                       debug_assert!(false, "Tried to fulfill an HTLC we already had a holding-cell failure on");
+                                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
                                                }
                                        },
                                        _ => {}
                                }
                        }
                        self.holding_cell_htlc_updates.push(HTLCUpdateAwaitingACK::ClaimHTLC {
-                               payment_preimage: payment_preimage_arg, payment_hash: payment_hash_calc,
+                               payment_preimage: payment_preimage_arg, htlc_id: htlc_id_arg,
                        });
                        return Ok((None, Some(self.channel_monitor.clone())));
                }
 
-               let htlc_id = {
-                       let htlc = &mut self.pending_htlcs[pending_idx];
-                       if htlc.state == HTLCState::Committed {
-                               htlc.state = HTLCState::LocalRemoved;
-                               htlc.local_removed_fulfilled = true;
-                       } else if htlc.state == HTLCState::RemoteAnnounced || htlc.state == HTLCState::AwaitingRemoteRevokeToAnnounce || htlc.state == HTLCState::AwaitingAnnouncedRemoteRevoke {
-                               // Theoretically we can hit this if we get the preimage on an HTLC prior to us
-                               // having forwarded it to anyone. This implies that the sender is busted as someone
-                               // else knows the preimage, but handling this case and implementing the logic to
-                               // take their money would be a lot of (never-tested) code to handle a case that
-                               // hopefully never happens. Instead, we make sure we get the preimage into the
-                               // channel_monitor and pretend we didn't just see the preimage.
-                               return Ok((None, Some(self.channel_monitor.clone())));
+               {
+                       let htlc = &mut self.pending_inbound_htlcs[pending_idx];
+                       if let InboundHTLCState::Committed = htlc.state {
                        } else {
-                               // LocalRemoved/LocalRemovedAwaitingCOmmitment handled in the search loop
-                               panic!("Have an inbound HTLC when not awaiting remote revoke that had a garbage state");
+                               debug_assert!(false, "Have an inbound HTLC we tried to claim before it was fully committed to");
+                               return Ok((None, Some(self.channel_monitor.clone())));
                        }
-                       htlc.htlc_id
-               };
+                       htlc.state = InboundHTLCState::LocalRemoved(InboundHTLCRemovalReason::Fulfill(payment_preimage_arg.clone()));
+               }
 
                Ok((Some(msgs::UpdateFulfillHTLC {
                        channel_id: self.channel_id(),
-                       htlc_id: htlc_id,
+                       htlc_id: htlc_id_arg,
                        payment_preimage: payment_preimage_arg,
                }), Some(self.channel_monitor.clone())))
        }
 
-       pub fn get_update_fulfill_htlc_and_commit(&mut self, payment_preimage: [u8; 32]) -> Result<(Option<(msgs::UpdateFulfillHTLC, msgs::CommitmentSigned)>, Option<ChannelMonitor>), HandleError> {
-               match self.get_update_fulfill_htlc(payment_preimage)? {
+       pub fn get_update_fulfill_htlc_and_commit(&mut self, htlc_id: u64, payment_preimage: [u8; 32]) -> Result<(Option<(msgs::UpdateFulfillHTLC, msgs::CommitmentSigned)>, Option<ChannelMonitor>), HandleError> {
+               match self.get_update_fulfill_htlc(htlc_id, payment_preimage)? {
                        (Some(update_fulfill_htlc), _) => {
                                let (commitment, monitor_update) = self.send_commitment_no_status_check()?;
                                Ok((Some((update_fulfill_htlc, commitment)), Some(monitor_update)))
@@ -1099,23 +1208,43 @@ impl Channel {
                }
        }
 
-       pub fn get_update_fail_htlc(&mut self, payment_hash_arg: &[u8; 32], err_packet: msgs::OnionErrorPacket) -> Result<Option<msgs::UpdateFailHTLC>, HandleError> {
+       /// May return an IgnoreError, but should not, and will always return Ok(_) when
+       /// debug_assertions are turned on
+       pub fn get_update_fail_htlc(&mut self, htlc_id_arg: u64, err_packet: msgs::OnionErrorPacket) -> Result<Option<msgs::UpdateFailHTLC>, HandleError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Was asked to fail an HTLC when channel was not in an operational state", action: None});
+                       panic!("Was asked to fail an HTLC when channel was not in an operational state");
                }
                assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
 
+               let mut pending_idx = std::usize::MAX;
+               for (idx, htlc) in self.pending_inbound_htlcs.iter().enumerate() {
+                       if htlc.htlc_id == htlc_id_arg {
+                               if let InboundHTLCState::Committed = htlc.state {
+                               } else {
+                                       debug_assert!(false, "Have an inbound HTLC we tried to fail before it was fully committed to");
+                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+                               }
+                               pending_idx = idx;
+                       }
+               }
+               if pending_idx == std::usize::MAX {
+                       debug_assert!(false, "Unable to find a pending HTLC which matched the given HTLC ID");
+                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
+               }
+
                // Now update local state:
-               if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == (ChannelState::AwaitingRemoteRevoke as u32) {
+               if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32 | ChannelState::PeerDisconnected as u32)) != 0 {
                        for pending_update in self.holding_cell_htlc_updates.iter() {
                                match pending_update {
-                                       &HTLCUpdateAwaitingACK::ClaimHTLC { ref payment_hash, .. } => {
-                                               if *payment_hash_arg == *payment_hash {
-                                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given payment preimage", action: None});
+                                       &HTLCUpdateAwaitingACK::ClaimHTLC { htlc_id, .. } => {
+                                               if htlc_id_arg == htlc_id {
+                                                       debug_assert!(false, "Unable to find a pending HTLC which matched the given HTLC ID");
+                                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: Some(msgs::ErrorAction::IgnoreError)});
                                                }
                                        },
-                                       &HTLCUpdateAwaitingACK::FailHTLC { ref payment_hash, .. } => {
-                                               if *payment_hash_arg == *payment_hash {
+                                       &HTLCUpdateAwaitingACK::FailHTLC { htlc_id, .. } => {
+                                               if htlc_id_arg == htlc_id {
+                                                       debug_assert!(false, "Tried to fail an HTLC that we already had a pending failure for");
                                                        return Ok(None);
                                                }
                                        },
@@ -1123,52 +1252,26 @@ impl Channel {
                                }
                        }
                        self.holding_cell_htlc_updates.push(HTLCUpdateAwaitingACK::FailHTLC {
-                               payment_hash: payment_hash_arg.clone(),
+                               htlc_id: htlc_id_arg,
                                err_packet,
                        });
                        return Ok(None);
                }
 
-               let mut htlc_id = 0;
-               let mut htlc_amount_msat = 0;
-               for htlc in self.pending_htlcs.iter_mut() {
-                       if !htlc.outbound && htlc.payment_hash == *payment_hash_arg {
-                               if htlc_id != 0 {
-                                       panic!("Duplicate HTLC payment_hash, you probably re-used payment preimages, NEVER DO THIS!");
-                               }
-                               if htlc.state == HTLCState::Committed {
-                                       htlc.state = HTLCState::LocalRemoved;
-                               } else if htlc.state == HTLCState::RemoteAnnounced {
-                                       if let Some(PendingHTLCStatus::Forward(_)) = htlc.pending_forward_state {
-                                               panic!("Somehow forwarded HTLC prior to remote revocation!");
-                                       } else {
-                                               // We have to pretend this isn't here - we're probably a duplicate with the
-                                               // same payment_hash as some other HTLC, and the other is getting failed,
-                                               // we'll fail this one as soon as remote commits to it.
-                                               continue;
-                                       }
-                               } else if htlc.state == HTLCState::LocalRemoved || htlc.state == HTLCState::LocalRemovedAwaitingCommitment {
-                                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given payment preimage", action: None});
-                               } else {
-                                       panic!("Have an inbound HTLC when not awaiting remote revoke that had a garbage state");
-                               }
-                               htlc_id = htlc.htlc_id;
-                               htlc_amount_msat += htlc.amount_msat;
-                       }
-               }
-               if htlc_amount_msat == 0 {
-                       return Err(HandleError{err: "Unable to find a pending HTLC which matched the given payment preimage", action: None});
+               {
+                       let htlc = &mut self.pending_inbound_htlcs[pending_idx];
+                       htlc.state = InboundHTLCState::LocalRemoved(InboundHTLCRemovalReason::FailRelay(err_packet.clone()));
                }
 
                Ok(Some(msgs::UpdateFailHTLC {
                        channel_id: self.channel_id(),
-                       htlc_id,
+                       htlc_id: htlc_id_arg,
                        reason: err_packet
                }))
        }
 
-       pub fn get_update_fail_htlc_and_commit(&mut self, payment_hash: &[u8; 32], err_packet: msgs::OnionErrorPacket) -> Result<Option<(msgs::UpdateFailHTLC, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
-               match self.get_update_fail_htlc(payment_hash, err_packet)? {
+       pub fn get_update_fail_htlc_and_commit(&mut self, htlc_id: u64, err_packet: msgs::OnionErrorPacket) -> Result<Option<(msgs::UpdateFailHTLC, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
+               match self.get_update_fail_htlc(htlc_id, err_packet)? {
                        Some(update_fail_htlc) => {
                                let (commitment, monitor_update) = self.send_commitment_no_status_check()?;
                                Ok(Some((update_fail_htlc, commitment, monitor_update)))
@@ -1179,48 +1282,43 @@ impl Channel {
 
        // Message handlers:
 
-       pub fn accept_channel(&mut self, msg: &msgs::AcceptChannel) -> Result<(), HandleError> {
-               macro_rules! return_error_message {
-                       ( $msg: expr ) => {
-                               return Err(HandleError{err: $msg, action: Some(msgs::ErrorAction::SendErrorMessage{ msg: msgs::ErrorMessage { channel_id: msg.temporary_channel_id, data: $msg.to_string() }})});
-                       }
-               }
+       pub fn accept_channel(&mut self, msg: &msgs::AcceptChannel) -> Result<(), ChannelError> {
                // Check sanity of message fields:
                if !self.channel_outbound {
-                       return_error_message!("Got an accept_channel message from an inbound peer");
+                       return Err(ChannelError::Close("Got an accept_channel message from an inbound peer"));
                }
                if self.channel_state != ChannelState::OurInitSent as u32 {
-                       return_error_message!("Got an accept_channel message at a strange time");
+                       return Err(ChannelError::Close("Got an accept_channel message at a strange time"));
                }
                if msg.dust_limit_satoshis > 21000000 * 100000000 {
-                       return_error_message!("Peer never wants payout outputs?");
+                       return Err(ChannelError::Close("Peer never wants payout outputs?"));
                }
                if msg.channel_reserve_satoshis > self.channel_value_satoshis {
-                       return_error_message!("Bogus channel_reserve_satoshis");
+                       return Err(ChannelError::Close("Bogus channel_reserve_satoshis"));
                }
                if msg.dust_limit_satoshis > msg.channel_reserve_satoshis {
-                       return_error_message!("Bogus channel_reserve and dust_limit");
+                       return Err(ChannelError::Close("Bogus channel_reserve and dust_limit"));
                }
                if msg.channel_reserve_satoshis < self.our_dust_limit_satoshis {
-                       return_error_message!("Peer never wants payout outputs?");
+                       return Err(ChannelError::Close("Peer never wants payout outputs?"));
                }
                if msg.dust_limit_satoshis > Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis) {
-                       return_error_message!("Dust limit is bigger than our channel reverse");
+                       return Err(ChannelError::Close("Dust limit is bigger than our channel reverse"));
                }
                if msg.htlc_minimum_msat >= (self.channel_value_satoshis - msg.channel_reserve_satoshis) * 1000 {
-                       return_error_message!("Minimum htlc value is full channel value");
+                       return Err(ChannelError::Close("Minimum htlc value is full channel value"));
                }
                if msg.minimum_depth > Channel::derive_maximum_minimum_depth(self.channel_value_satoshis*1000,  self.value_to_self_msat) {
-                       return_error_message!("minimum_depth too large");
+                       return Err(ChannelError::Close("minimum_depth too large"));
                }
                if msg.to_self_delay > MAX_LOCAL_BREAKDOWN_TIMEOUT {
-                       return_error_message!("They wanted our payments to be delayed by a needlessly long period");
+                       return Err(ChannelError::Close("They wanted our payments to be delayed by a needlessly long period"));
                }
                if msg.max_accepted_htlcs < 1 {
-                       return_error_message!("0 max_accpted_htlcs makes for a useless channel");
+                       return Err(ChannelError::Close("0 max_accpted_htlcs makes for a useless channel"));
                }
                if msg.max_accepted_htlcs > 483 {
-                       return_error_message!("max_accpted_htlcs > 483");
+                       return Err(ChannelError::Close("max_accpted_htlcs > 483"));
                }
 
                // TODO: Optional additional constraints mentioned in the spec
@@ -1232,7 +1330,7 @@ impl Channel {
                // max_accepted_htlcs too small
                // dust_limit_satoshis too small
 
-               self.channel_monitor.set_their_htlc_base_key(&msg.htlc_basepoint);
+               self.channel_monitor.set_their_base_keys(&msg.htlc_basepoint, &msg.delayed_payment_basepoint);
 
                self.their_dust_limit_satoshis = msg.dust_limit_satoshis;
                self.their_max_htlc_value_in_flight_msat = cmp::min(msg.max_htlc_value_in_flight_msat, self.channel_value_satoshis * 1000);
@@ -1259,16 +1357,16 @@ impl Channel {
        fn funding_created_signature(&mut self, sig: &Signature) -> Result<(Transaction, Signature), HandleError> {
                let funding_script = self.get_funding_redeemscript();
 
-               let remote_keys = self.build_remote_transaction_keys()?;
-               let remote_initial_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, false).0;
-               let remote_sighash = Message::from_slice(&bip143::SighashComponents::new(&remote_initial_commitment_tx).sighash_all(&remote_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
-
                let local_keys = self.build_local_transaction_keys(self.cur_local_commitment_transaction_number)?;
-               let local_initial_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false).0;
+               let local_initial_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, self.feerate_per_kw).0;
                let local_sighash = Message::from_slice(&bip143::SighashComponents::new(&local_initial_commitment_tx).sighash_all(&local_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
                // They sign the "local" commitment transaction, allowing us to broadcast the tx if we wish.
-               secp_call!(self.secp_ctx.verify(&local_sighash, &sig, &self.their_funding_pubkey.unwrap()), "Invalid funding_created signature from peer");
+               secp_call!(self.secp_ctx.verify(&local_sighash, &sig, &self.their_funding_pubkey.unwrap()), "Invalid funding_created signature from peer", self.channel_id());
+
+               let remote_keys = self.build_remote_transaction_keys()?;
+               let remote_initial_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, false, self.feerate_per_kw).0;
+               let remote_sighash = Message::from_slice(&bip143::SighashComponents::new(&remote_initial_commitment_tx).sighash_all(&remote_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
                // We sign the "remote" commitment transaction, allowing them to broadcast the tx if they wish.
                Ok((remote_initial_commitment_tx, self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key)))
@@ -1276,12 +1374,17 @@ impl Channel {
 
        pub fn funding_created(&mut self, msg: &msgs::FundingCreated) -> Result<(msgs::FundingSigned, ChannelMonitor), HandleError> {
                if self.channel_outbound {
-                       return Err(HandleError{err: "Received funding_created for an outbound channel?", action: None});
+                       return Err(HandleError{err: "Received funding_created for an outbound channel?", action: Some(msgs::ErrorAction::SendErrorMessage {msg: msgs::ErrorMessage {channel_id: self.channel_id, data: "Received funding_created for an outbound channel?".to_string()}})});
                }
                if self.channel_state != (ChannelState::OurInitSent as u32 | ChannelState::TheirInitSent as u32) {
-                       return Err(HandleError{err: "Received funding_created after we got the channel!", action: None});
-               }
-               if self.channel_monitor.get_min_seen_secret() != (1 << 48) || self.cur_remote_commitment_transaction_number != (1 << 48) - 1 || self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
+                       // BOLT 2 says that if we disconnect before we send funding_signed we SHOULD NOT
+                       // remember the channel, so its safe to just send an error_message here and drop the
+                       // channel.
+                       return Err(HandleError{err: "Received funding_created after we got the channel!", action: Some(msgs::ErrorAction::SendErrorMessage {msg: msgs::ErrorMessage {channel_id: self.channel_id, data: "Received funding_created after we got the channel!".to_string()}})});
+               }
+               if self.channel_monitor.get_min_seen_secret() != (1 << 48) ||
+                               self.cur_remote_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER ||
+                               self.cur_local_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER {
                        panic!("Should not have advanced channel commitment tx numbers prior to funding_created");
                }
 
@@ -1320,18 +1423,20 @@ impl Channel {
                if self.channel_state != ChannelState::FundingCreated as u32 {
                        return Err(HandleError{err: "Received funding_signed in strange state!", action: None});
                }
-               if self.channel_monitor.get_min_seen_secret() != (1 << 48) || self.cur_remote_commitment_transaction_number != (1 << 48) - 2 || self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
+               if self.channel_monitor.get_min_seen_secret() != (1 << 48) ||
+                               self.cur_remote_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER - 1 ||
+                               self.cur_local_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER {
                        panic!("Should not have advanced channel commitment tx numbers prior to funding_created");
                }
 
                let funding_script = self.get_funding_redeemscript();
 
                let local_keys = self.build_local_transaction_keys(self.cur_local_commitment_transaction_number)?;
-               let mut local_initial_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false).0;
+               let mut local_initial_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, self.feerate_per_kw).0;
                let local_sighash = Message::from_slice(&bip143::SighashComponents::new(&local_initial_commitment_tx).sighash_all(&local_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
                // They sign the "local" commitment transaction, allowing us to broadcast the tx if we wish.
-               secp_call!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid funding_signed signature from peer");
+               secp_call!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid funding_signed signature from peer", self.channel_id());
 
                self.sign_commitment_transaction(&mut local_initial_commitment_tx, &msg.signature);
                self.channel_monitor.provide_latest_local_commitment_tx_info(local_initial_commitment_tx.clone(), local_keys, self.feerate_per_kw, Vec::new());
@@ -1342,15 +1447,27 @@ impl Channel {
                Ok(self.channel_monitor.clone())
        }
 
-       pub fn funding_locked(&mut self, msg: &msgs::FundingLocked) -> Result<(), HandleError> {
+       pub fn funding_locked(&mut self, msg: &msgs::FundingLocked) -> Result<(), ChannelError> {
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(ChannelError::Close("Peer sent funding_locked when we needed a channel_reestablish"));
+               }
                let non_shutdown_state = self.channel_state & (!BOTH_SIDES_SHUTDOWN_MASK);
                if non_shutdown_state == ChannelState::FundingSent as u32 {
                        self.channel_state |= ChannelState::TheirFundingLocked as u32;
                } else if non_shutdown_state == (ChannelState::FundingSent as u32 | ChannelState::OurFundingLocked as u32) {
                        self.channel_state = ChannelState::ChannelFunded as u32 | (self.channel_state & BOTH_SIDES_SHUTDOWN_MASK);
                        self.channel_update_count += 1;
+               } else if self.channel_state & (ChannelState::ChannelFunded as u32) != 0 &&
+                               // Note that funding_signed/funding_created will have decremented both by 1!
+                               self.cur_local_commitment_transaction_number == INITIAL_COMMITMENT_NUMBER - 1 &&
+                               self.cur_remote_commitment_transaction_number == INITIAL_COMMITMENT_NUMBER - 1 {
+                       if self.their_cur_commitment_point != Some(msg.next_per_commitment_point) {
+                               return Err(ChannelError::Close("Peer sent a reconnect funding_locked with a different point"));
+                       }
+                       // They probably disconnected/reconnected and re-sent the funding_locked, which is required
+                       return Ok(());
                } else {
-                       return Err(HandleError{err: "Peer sent a funding_locked at a strange time", action: None});
+                       return Err(ChannelError::Close("Peer sent a funding_locked at a strange time"));
                }
 
                self.their_prev_commitment_point = self.their_cur_commitment_point;
@@ -1358,45 +1475,32 @@ impl Channel {
                Ok(())
        }
 
-       /// Returns (inbound_htlc_count, outbound_htlc_count, htlc_outbound_value_msat, htlc_inbound_value_msat)
-       /// If its for a remote update check, we need to be more lax about checking against messages we
-       /// sent but they may not have received/processed before they sent this message. Further, for
-       /// our own sends, we're more conservative and even consider things they've removed against
-       /// totals, though there is little reason to outside of further avoiding any race condition
-       /// issues.
-       fn get_pending_htlc_stats(&self, for_remote_update_check: bool) -> (u32, u32, u64, u64) {
-               let mut inbound_htlc_count: u32 = 0;
-               let mut outbound_htlc_count: u32 = 0;
-               let mut htlc_outbound_value_msat = 0;
+       /// Returns (inbound_htlc_count, htlc_inbound_value_msat)
+       fn get_inbound_pending_htlc_stats(&self) -> (u32, u64) {
                let mut htlc_inbound_value_msat = 0;
-               for ref htlc in self.pending_htlcs.iter() {
-                       match htlc.state {
-                               HTLCState::RemoteAnnounced => {},
-                               HTLCState::AwaitingRemoteRevokeToAnnounce => {},
-                               HTLCState::AwaitingAnnouncedRemoteRevoke => {},
-                               HTLCState::LocalAnnounced => { if for_remote_update_check { continue; } },
-                               HTLCState::Committed => {},
-                               HTLCState::RemoteRemoved => { if for_remote_update_check { continue; } },
-                               HTLCState::AwaitingRemoteRevokeToRemove => { if for_remote_update_check { continue; } },
-                               HTLCState::AwaitingRemovedRemoteRevoke => { if for_remote_update_check { continue; } },
-                               HTLCState::LocalRemoved => {},
-                               HTLCState::LocalRemovedAwaitingCommitment => { if for_remote_update_check { continue; } },
-                       }
-                       if !htlc.outbound {
-                               inbound_htlc_count += 1;
-                               htlc_inbound_value_msat += htlc.amount_msat;
-                       } else {
-                               outbound_htlc_count += 1;
-                               htlc_outbound_value_msat += htlc.amount_msat;
-                       }
+               for ref htlc in self.pending_inbound_htlcs.iter() {
+                       htlc_inbound_value_msat += htlc.amount_msat;
+               }
+               (self.pending_inbound_htlcs.len() as u32, htlc_inbound_value_msat)
+       }
+
+       /// Returns (outbound_htlc_count, htlc_outbound_value_msat)
+       fn get_outbound_pending_htlc_stats(&self) -> (u32, u64) {
+               let mut htlc_outbound_value_msat = 0;
+               for ref htlc in self.pending_outbound_htlcs.iter() {
+                       htlc_outbound_value_msat += htlc.amount_msat;
                }
-               (inbound_htlc_count, outbound_htlc_count, htlc_outbound_value_msat, htlc_inbound_value_msat)
+
+               (self.pending_outbound_htlcs.len() as u32, htlc_outbound_value_msat)
        }
 
        pub fn update_add_htlc(&mut self, msg: &msgs::UpdateAddHTLC, pending_forward_state: PendingHTLCStatus) -> Result<(), HandleError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32 | ChannelState::RemoteShutdownSent as u32)) != (ChannelState::ChannelFunded as u32) {
                        return Err(HandleError{err: "Got add HTLC message when channel was not in an operational state", action: None});
                }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(HandleError{err: "Peer sent update_add_htlc when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent update_add_htlc when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+               }
                if msg.amount_msat > self.channel_value_satoshis * 1000 {
                        return Err(HandleError{err: "Remote side tried to send more than the total value of the channel", action: None});
                }
@@ -1404,7 +1508,7 @@ impl Channel {
                        return Err(HandleError{err: "Remote side tried to send less than our minimum HTLC value", action: None});
                }
 
-               let (inbound_htlc_count, _, htlc_outbound_value_msat, htlc_inbound_value_msat) = self.get_pending_htlc_stats(true);
+               let (inbound_htlc_count, htlc_inbound_value_msat) = self.get_inbound_pending_htlc_stats();
                if inbound_htlc_count + 1 > OUR_MAX_HTLCS as u32 {
                        return Err(HandleError{err: "Remote tried to push more than our max accepted HTLCs", action: None});
                }
@@ -1416,7 +1520,7 @@ impl Channel {
                // Check our_channel_reserve_satoshis (we're getting paid, so they have to at least meet
                // the reserve_satoshis we told them to always have as direct payment so that they lose
                // something if we punish them for broadcasting an old state).
-               if htlc_inbound_value_msat + htlc_outbound_value_msat + msg.amount_msat + self.value_to_self_msat > (self.channel_value_satoshis - Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis)) * 1000 {
+               if htlc_inbound_value_msat + msg.amount_msat + self.value_to_self_msat > (self.channel_value_satoshis - Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis)) * 1000 {
                        return Err(HandleError{err: "Remote HTLC add would put them over their reserve value", action: None});
                }
                if self.next_remote_htlc_id != msg.htlc_id {
@@ -1430,52 +1534,51 @@ impl Channel {
 
                // Now update local state:
                self.next_remote_htlc_id += 1;
-               self.pending_htlcs.push(HTLCOutput {
-                       outbound: false,
+               self.pending_inbound_htlcs.push(InboundHTLCOutput {
                        htlc_id: msg.htlc_id,
                        amount_msat: msg.amount_msat,
                        payment_hash: msg.payment_hash,
                        cltv_expiry: msg.cltv_expiry,
-                       state: HTLCState::RemoteAnnounced,
-                       fail_reason: None,
-                       local_removed_fulfilled: false,
-                       pending_forward_state: Some(pending_forward_state),
+                       state: InboundHTLCState::RemoteAnnounced(pending_forward_state),
                });
 
                Ok(())
        }
 
-       /// Removes an outbound HTLC which has been commitment_signed by the remote end
+       /// Marks an outbound HTLC which we have received update_fail/fulfill/malformed
        #[inline]
-       fn mark_outbound_htlc_removed(&mut self, htlc_id: u64, check_preimage: Option<[u8; 32]>, fail_reason: Option<HTLCFailReason>) -> Result<[u8; 32], HandleError> {
-               for htlc in self.pending_htlcs.iter_mut() {
-                       if htlc.outbound && htlc.htlc_id == htlc_id {
+       fn mark_outbound_htlc_removed(&mut self, htlc_id: u64, check_preimage: Option<[u8; 32]>, fail_reason: Option<HTLCFailReason>) -> Result<&HTLCSource, ChannelError> {
+               for htlc in self.pending_outbound_htlcs.iter_mut() {
+                       if htlc.htlc_id == htlc_id {
                                match check_preimage {
                                        None => {},
                                        Some(payment_hash) =>
                                                if payment_hash != htlc.payment_hash {
-                                                       return Err(HandleError{err: "Remote tried to fulfill HTLC with an incorrect preimage", action: None});
+                                                       return Err(ChannelError::Close("Remote tried to fulfill HTLC with an incorrect preimage"));
                                                }
                                };
-                               if htlc.state == HTLCState::LocalAnnounced {
-                                       return Err(HandleError{err: "Remote tried to fulfill HTLC before it had been committed", action: None});
-                               } else if htlc.state == HTLCState::Committed {
-                                       htlc.state = HTLCState::RemoteRemoved;
-                                       htlc.fail_reason = fail_reason;
-                               } else if htlc.state == HTLCState::AwaitingRemoteRevokeToRemove || htlc.state == HTLCState::AwaitingRemovedRemoteRevoke || htlc.state == HTLCState::RemoteRemoved {
-                                       return Err(HandleError{err: "Remote tried to fulfill HTLC that they'd already fulfilled", action: None});
-                               } else {
-                                       panic!("Got a non-outbound state on an outbound HTLC");
+                               match htlc.state {
+                                       OutboundHTLCState::LocalAnnounced(_) =>
+                                               return Err(ChannelError::Close("Remote tried to fulfill/fail HTLC before it had been committed")),
+                                       OutboundHTLCState::Committed => {
+                                               htlc.state = OutboundHTLCState::RemoteRemoved;
+                                               htlc.fail_reason = fail_reason;
+                                       },
+                                       OutboundHTLCState::AwaitingRemoteRevokeToRemove | OutboundHTLCState::AwaitingRemovedRemoteRevoke | OutboundHTLCState::RemoteRemoved =>
+                                               return Err(ChannelError::Close("Remote tried to fulfill/fail HTLC that they'd already fulfilled/failed")),
                                }
-                               return Ok(htlc.payment_hash.clone());
+                               return Ok(&htlc.source);
                        }
                }
-               Err(HandleError{err: "Remote tried to fulfill/fail an HTLC we couldn't find", action: None})
+               Err(ChannelError::Close("Remote tried to fulfill/fail an HTLC we couldn't find"))
        }
 
-       pub fn update_fulfill_htlc(&mut self, msg: &msgs::UpdateFulfillHTLC) -> Result<(), HandleError> {
+       pub fn update_fulfill_htlc(&mut self, msg: &msgs::UpdateFulfillHTLC) -> Result<&HTLCSource, ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Got add HTLC message when channel was not in an operational state", action: None});
+                       return Err(ChannelError::Close("Got fulfill HTLC message when channel was not in an operational state"));
+               }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(ChannelError::Close("Peer sent update_fulfill_htlc when we needed a channel_reestablish"));
                }
 
                let mut sha = Sha256::new();
@@ -1483,39 +1586,53 @@ impl Channel {
                let mut payment_hash = [0; 32];
                sha.result(&mut payment_hash);
 
-               self.mark_outbound_htlc_removed(msg.htlc_id, Some(payment_hash), None)?;
-               Ok(())
+               self.mark_outbound_htlc_removed(msg.htlc_id, Some(payment_hash), None)
        }
 
-       pub fn update_fail_htlc(&mut self, msg: &msgs::UpdateFailHTLC, fail_reason: HTLCFailReason) -> Result<[u8; 32], HandleError> {
+       pub fn update_fail_htlc(&mut self, msg: &msgs::UpdateFailHTLC, fail_reason: HTLCFailReason) -> Result<&HTLCSource, ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Got add HTLC message when channel was not in an operational state", action: None});
+                       return Err(ChannelError::Close("Got fail HTLC message when channel was not in an operational state"));
+               }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(ChannelError::Close("Peer sent update_fail_htlc when we needed a channel_reestablish"));
                }
 
                self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))
        }
 
-       pub fn update_fail_malformed_htlc(&mut self, msg: &msgs::UpdateFailMalformedHTLC, fail_reason: HTLCFailReason) -> Result<(), HandleError> {
+       pub fn update_fail_malformed_htlc<'a>(&mut self, msg: &msgs::UpdateFailMalformedHTLC, fail_reason: HTLCFailReason) -> Result<&HTLCSource, ChannelError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Got add HTLC message when channel was not in an operational state", action: None});
+                       return Err(ChannelError::Close("Got fail malformed HTLC message when channel was not in an operational state"));
+               }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(ChannelError::Close("Peer sent update_fail_malformed_htlc when we needed a channel_reestablish"));
                }
 
-               self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))?;
-               Ok(())
+               self.mark_outbound_htlc_removed(msg.htlc_id, None, Some(fail_reason))
        }
 
        pub fn commitment_signed(&mut self, msg: &msgs::CommitmentSigned) -> Result<(msgs::RevokeAndACK, Option<msgs::CommitmentSigned>, ChannelMonitor), HandleError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        return Err(HandleError{err: "Got commitment signed message when channel was not in an operational state", action: None});
                }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(HandleError{err: "Peer sent commitment_signed when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent commitment_signed when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+               }
 
                let funding_script = self.get_funding_redeemscript();
 
                let local_keys = self.build_local_transaction_keys(self.cur_local_commitment_transaction_number)?;
-               let mut local_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false);
+
+               let feerate_per_kw = if !self.channel_outbound && self.pending_update_fee.is_some() {
+                       self.pending_update_fee.unwrap()
+               } else {
+                       self.feerate_per_kw
+               };
+
+               let mut local_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false, feerate_per_kw);
                let local_commitment_txid = local_commitment_tx.0.txid();
                let local_sighash = Message::from_slice(&bip143::SighashComponents::new(&local_commitment_tx.0).sighash_all(&local_commitment_tx.0.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
-               secp_call!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid commitment tx signature from peer");
+               secp_call!(self.secp_ctx.verify(&local_sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid commitment tx signature from peer", self.channel_id());
 
                if msg.htlc_signatures.len() != local_commitment_tx.1.len() {
                        return Err(HandleError{err: "Got wrong number of HTLC signatures from remote", action: None});
@@ -1527,10 +1644,10 @@ impl Channel {
 
                let mut htlcs_and_sigs = Vec::with_capacity(local_commitment_tx.1.len());
                for (idx, ref htlc) in local_commitment_tx.1.iter().enumerate() {
-                       let mut htlc_tx = self.build_htlc_transaction(&local_commitment_txid, htlc, true, &local_keys);
+                       let mut htlc_tx = self.build_htlc_transaction(&local_commitment_txid, htlc, true, &local_keys, feerate_per_kw);
                        let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &local_keys);
                        let htlc_sighash = Message::from_slice(&bip143::SighashComponents::new(&htlc_tx).sighash_all(&htlc_tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
-                       secp_call!(self.secp_ctx.verify(&htlc_sighash, &msg.htlc_signatures[idx], &local_keys.b_htlc_key), "Invalid HTLC tx siganture from peer");
+                       secp_call!(self.secp_ctx.verify(&htlc_sighash, &msg.htlc_signatures[idx], &local_keys.b_htlc_key), "Invalid HTLC tx siganture from peer", self.channel_id());
                        let htlc_sig = if htlc.offered {
                                let htlc_sig = self.sign_htlc_transaction(&mut htlc_tx, &msg.htlc_signatures[idx], &None, htlc, &local_keys)?;
                                new_local_commitment_txn.push(htlc_tx);
@@ -1545,28 +1662,37 @@ impl Channel {
                let per_commitment_secret = chan_utils::build_commitment_secret(self.local_keys.commitment_seed, self.cur_local_commitment_transaction_number + 1);
 
                // Update state now that we've passed all the can-fail calls...
+               let mut need_our_commitment = false;
+               if !self.channel_outbound {
+                       if let Some(fee_update) = self.pending_update_fee {
+                               self.feerate_per_kw = fee_update;
+                               // We later use the presence of pending_update_fee to indicate we should generate a
+                               // commitment_signed upon receipt of revoke_and_ack, so we can only set it to None
+                               // if we're not awaiting a revoke (ie will send a commitment_signed now).
+                               if (self.channel_state & ChannelState::AwaitingRemoteRevoke as u32) == 0 {
+                                       need_our_commitment = true;
+                                       self.pending_update_fee = None;
+                               }
+                       }
+               }
+
                self.channel_monitor.provide_latest_local_commitment_tx_info(local_commitment_tx.0, local_keys, self.feerate_per_kw, htlcs_and_sigs);
 
-               let mut need_our_commitment = false;
-               for htlc in self.pending_htlcs.iter_mut() {
-                       if htlc.state == HTLCState::RemoteAnnounced {
-                               htlc.state = HTLCState::AwaitingRemoteRevokeToAnnounce;
+               for htlc in self.pending_inbound_htlcs.iter_mut() {
+                       let new_forward = if let &InboundHTLCState::RemoteAnnounced(ref forward_info) = &htlc.state {
+                               Some(forward_info.clone())
+                       } else { None };
+                       if let Some(forward_info) = new_forward {
+                               htlc.state = InboundHTLCState::AwaitingRemoteRevokeToAnnounce(forward_info);
                                need_our_commitment = true;
-                       } else if htlc.state == HTLCState::RemoteRemoved {
-                               htlc.state = HTLCState::AwaitingRemoteRevokeToRemove;
+                       }
+               }
+               for htlc in self.pending_outbound_htlcs.iter_mut() {
+                       if let OutboundHTLCState::RemoteRemoved = htlc.state {
+                               htlc.state = OutboundHTLCState::AwaitingRemoteRevokeToRemove;
                                need_our_commitment = true;
                        }
                }
-               // Finally delete all the LocalRemovedAwaitingCommitment HTLCs
-               // We really shouldnt have two passes here, but retain gives a non-mutable ref (Rust bug)
-               let mut claimed_value_msat = 0;
-               self.pending_htlcs.retain(|htlc| {
-                       if htlc.state == HTLCState::LocalRemovedAwaitingCommitment {
-                               claimed_value_msat += htlc.amount_msat;
-                               false
-                       } else { true }
-               });
-               self.value_to_self_msat += claimed_value_msat;
 
                self.cur_local_commitment_transaction_number -= 1;
                self.last_local_commitment_txn = new_local_commitment_txn;
@@ -1589,7 +1715,7 @@ impl Channel {
        /// Used to fulfill holding_cell_htlcs when we get a remote ack (or implicitly get it by them
        /// fulfilling or failing the last pending HTLC)
        fn free_holding_cell_htlcs(&mut self) -> Result<Option<(msgs::CommitmentUpdate, ChannelMonitor)>, HandleError> {
-               if self.holding_cell_htlc_updates.len() != 0 {
+               if self.holding_cell_htlc_updates.len() != 0 || self.holding_cell_update_fee.is_some() {
                        let mut htlc_updates = Vec::new();
                        mem::swap(&mut htlc_updates, &mut self.holding_cell_htlc_updates);
                        let mut update_add_htlcs = Vec::with_capacity(htlc_updates.len());
@@ -1606,27 +1732,33 @@ impl Channel {
                                        self.holding_cell_htlc_updates.push(htlc_update);
                                } else {
                                        match &htlc_update {
-                                               &HTLCUpdateAwaitingACK::AddHTLC {amount_msat, cltv_expiry, payment_hash, ref onion_routing_packet, ..} => {
-                                                       match self.send_htlc(amount_msat, payment_hash, cltv_expiry, onion_routing_packet.clone()) {
+                                               &HTLCUpdateAwaitingACK::AddHTLC {amount_msat, cltv_expiry, payment_hash, ref source, ref onion_routing_packet, ..} => {
+                                                       match self.send_htlc(amount_msat, payment_hash, cltv_expiry, source.clone(), onion_routing_packet.clone()) {
                                                                Ok(update_add_msg_option) => update_add_htlcs.push(update_add_msg_option.unwrap()),
                                                                Err(e) => {
                                                                        err = Some(e);
                                                                }
                                                        }
                                                },
-                                               &HTLCUpdateAwaitingACK::ClaimHTLC { payment_preimage, .. } => {
-                                                       match self.get_update_fulfill_htlc(payment_preimage) {
+                                               &HTLCUpdateAwaitingACK::ClaimHTLC { payment_preimage, htlc_id, .. } => {
+                                                       match self.get_update_fulfill_htlc(htlc_id, payment_preimage) {
                                                                Ok(update_fulfill_msg_option) => update_fulfill_htlcs.push(update_fulfill_msg_option.0.unwrap()),
                                                                Err(e) => {
-                                                                       err = Some(e);
+                                                                       if let Some(msgs::ErrorAction::IgnoreError) = e.action {}
+                                                                       else {
+                                                                               panic!("Got a non-IgnoreError action trying to fulfill holding cell HTLC");
+                                                                       }
                                                                }
                                                        }
                                                },
-                                               &HTLCUpdateAwaitingACK::FailHTLC { payment_hash, ref err_packet } => {
-                                                       match self.get_update_fail_htlc(&payment_hash, err_packet.clone()) {
+                                               &HTLCUpdateAwaitingACK::FailHTLC { htlc_id, ref err_packet } => {
+                                                       match self.get_update_fail_htlc(htlc_id, err_packet.clone()) {
                                                                Ok(update_fail_msg_option) => update_fail_htlcs.push(update_fail_msg_option.unwrap()),
                                                                Err(e) => {
-                                                                       err = Some(e);
+                                                                       if let Some(msgs::ErrorAction::IgnoreError) = e.action {}
+                                                                       else {
+                                                                               panic!("Got a non-IgnoreError action trying to fail holding cell HTLC");
+                                                                       }
                                                                }
                                                        }
                                                },
@@ -1640,12 +1772,28 @@ impl Channel {
                        //fail it back the route, if its a temporary issue we can ignore it...
                        match err {
                                None => {
+                                       if update_add_htlcs.is_empty() && update_fulfill_htlcs.is_empty() && update_fail_htlcs.is_empty() && self.holding_cell_update_fee.is_none() {
+                                               // This should never actually happen and indicates we got some Errs back
+                                               // from update_fulfill_htlc/update_fail_htlc, but we handle it anyway in
+                                               // case there is some strange way to hit duplicate HTLC removes.
+                                               return Ok(None);
+                                       }
+                                       let update_fee = if let Some(feerate) = self.holding_cell_update_fee {
+                                                       self.pending_update_fee = self.holding_cell_update_fee.take();
+                                                       Some(msgs::UpdateFee {
+                                                               channel_id: self.channel_id,
+                                                               feerate_per_kw: feerate as u32,
+                                                       })
+                                               } else {
+                                                       None
+                                               };
                                        let (commitment_signed, monitor_update) = self.send_commitment_no_status_check()?;
                                        Ok(Some((msgs::CommitmentUpdate {
                                                update_add_htlcs,
                                                update_fulfill_htlcs,
                                                update_fail_htlcs,
                                                update_fail_malformed_htlcs: Vec::new(),
+                                               update_fee: update_fee,
                                                commitment_signed,
                                        }, monitor_update)))
                                },
@@ -1661,12 +1809,15 @@ impl Channel {
        /// waiting on this revoke_and_ack. The generation of this new commitment_signed may also fail,
        /// generating an appropriate error *after* the channel state has been updated based on the
        /// revoke_and_ack message.
-       pub fn revoke_and_ack(&mut self, msg: &msgs::RevokeAndACK) -> Result<(Option<msgs::CommitmentUpdate>, Vec<PendingForwardHTLCInfo>, Vec<([u8; 32], HTLCFailReason)>, ChannelMonitor), HandleError> {
+       pub fn revoke_and_ack(&mut self, msg: &msgs::RevokeAndACK) -> Result<(Option<msgs::CommitmentUpdate>, Vec<(PendingForwardHTLCInfo, u64)>, Vec<(HTLCSource, [u8; 32], HTLCFailReason)>, ChannelMonitor), HandleError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
                        return Err(HandleError{err: "Got revoke/ACK message when channel was not in an operational state", action: None});
                }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(HandleError{err: "Peer sent revoke_and_ack when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent revoke_and_ack when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+               }
                if let Some(their_prev_commitment_point) = self.their_prev_commitment_point {
-                       if PublicKey::from_secret_key(&self.secp_ctx, &secp_call!(SecretKey::from_slice(&self.secp_ctx, &msg.per_commitment_secret), "Peer provided an invalid per_commitment_secret")) != their_prev_commitment_point {
+                       if PublicKey::from_secret_key(&self.secp_ctx, &secp_call!(SecretKey::from_slice(&self.secp_ctx, &msg.per_commitment_secret), "Peer provided an invalid per_commitment_secret", self.channel_id())) != their_prev_commitment_point {
                                return Err(HandleError{err: "Got a revoke commitment secret which didn't correspond to their current pubkey", action: None});
                        }
                }
@@ -1688,12 +1839,18 @@ impl Channel {
                let mut require_commitment = false;
                let mut value_to_self_msat_diff: i64 = 0;
                // We really shouldnt have two passes here, but retain gives a non-mutable ref (Rust bug)
-               self.pending_htlcs.retain(|htlc| {
-                       if htlc.state == HTLCState::LocalRemoved {
-                               if htlc.local_removed_fulfilled { true } else { false }
-                       } else if htlc.state == HTLCState::AwaitingRemovedRemoteRevoke {
+               self.pending_inbound_htlcs.retain(|htlc| {
+                       if let &InboundHTLCState::LocalRemoved(ref reason) = &htlc.state {
+                               if let &InboundHTLCRemovalReason::Fulfill(_) = reason {
+                                       value_to_self_msat_diff += htlc.amount_msat as i64;
+                               }
+                               false
+                       } else { true }
+               });
+               self.pending_outbound_htlcs.retain(|htlc| {
+                       if let OutboundHTLCState::AwaitingRemovedRemoteRevoke = htlc.state {
                                if let Some(reason) = htlc.fail_reason.clone() { // We really want take() here, but, again, non-mut ref :(
-                                       revoked_htlcs.push((htlc.payment_hash, reason));
+                                       revoked_htlcs.push((htlc.source.clone(), htlc.payment_hash, reason));
                                } else {
                                        // They fulfilled, so we sent them money
                                        value_to_self_msat_diff -= htlc.amount_msat as i64;
@@ -1701,37 +1858,70 @@ impl Channel {
                                false
                        } else { true }
                });
-               for htlc in self.pending_htlcs.iter_mut() {
-                       if htlc.state == HTLCState::LocalAnnounced {
-                               htlc.state = HTLCState::Committed;
-                       } else if htlc.state == HTLCState::AwaitingRemoteRevokeToAnnounce {
-                               htlc.state = HTLCState::AwaitingAnnouncedRemoteRevoke;
-                               require_commitment = true;
-                       } else if htlc.state == HTLCState::AwaitingAnnouncedRemoteRevoke {
-                               match htlc.pending_forward_state.take().unwrap() {
-                                       PendingHTLCStatus::Fail(fail_msg) => {
-                                               htlc.state = HTLCState::LocalRemoved;
-                                               require_commitment = true;
-                                               match fail_msg {
-                                                       HTLCFailureMsg::Relay(msg) => update_fail_htlcs.push(msg),
-                                                       HTLCFailureMsg::Malformed(msg) => update_fail_malformed_htlcs.push(msg),
+               for htlc in self.pending_inbound_htlcs.iter_mut() {
+                       let swap = if let &InboundHTLCState::AwaitingRemoteRevokeToAnnounce(_) = &htlc.state {
+                               true
+                       } else if let &InboundHTLCState::AwaitingAnnouncedRemoteRevoke(_) = &htlc.state {
+                               true
+                       } else { false };
+                       if swap {
+                               let mut state = InboundHTLCState::Committed;
+                               mem::swap(&mut state, &mut htlc.state);
+
+                               if let InboundHTLCState::AwaitingRemoteRevokeToAnnounce(forward_info) = state {
+                                       htlc.state = InboundHTLCState::AwaitingAnnouncedRemoteRevoke(forward_info);
+                                       require_commitment = true;
+                               } else if let InboundHTLCState::AwaitingAnnouncedRemoteRevoke(forward_info) = state {
+                                       match forward_info {
+                                               PendingHTLCStatus::Fail(fail_msg) => {
+                                                       require_commitment = true;
+                                                       match fail_msg {
+                                                               HTLCFailureMsg::Relay(msg) => {
+                                                                       htlc.state = InboundHTLCState::LocalRemoved(InboundHTLCRemovalReason::FailRelay(msg.reason.clone()));
+                                                                       update_fail_htlcs.push(msg)
+                                                               },
+                                                               HTLCFailureMsg::Malformed(msg) => {
+                                                                       htlc.state = InboundHTLCState::LocalRemoved(InboundHTLCRemovalReason::FailMalformed((msg.sha256_of_onion, msg.failure_code)));
+                                                                       update_fail_malformed_htlcs.push(msg)
+                                                               },
+                                                       }
+                                               },
+                                               PendingHTLCStatus::Forward(forward_info) => {
+                                                       to_forward_infos.push((forward_info, htlc.htlc_id));
+                                                       htlc.state = InboundHTLCState::Committed;
                                                }
-                                       },
-                                       PendingHTLCStatus::Forward(forward_info) => {
-                                               to_forward_infos.push(forward_info);
-                                               htlc.state = HTLCState::Committed;
                                        }
                                }
-                       } else if htlc.state == HTLCState::AwaitingRemoteRevokeToRemove {
-                               htlc.state = HTLCState::AwaitingRemovedRemoteRevoke;
+                       }
+               }
+               for htlc in self.pending_outbound_htlcs.iter_mut() {
+                       if let OutboundHTLCState::LocalAnnounced(_) = htlc.state {
+                               htlc.state = OutboundHTLCState::Committed;
+                       } else if let OutboundHTLCState::AwaitingRemoteRevokeToRemove = htlc.state {
+                               htlc.state = OutboundHTLCState::AwaitingRemovedRemoteRevoke;
                                require_commitment = true;
-                       } else if htlc.state == HTLCState::LocalRemoved {
-                               assert!(htlc.local_removed_fulfilled);
-                               htlc.state = HTLCState::LocalRemovedAwaitingCommitment;
                        }
                }
                self.value_to_self_msat = (self.value_to_self_msat as i64 + value_to_self_msat_diff) as u64;
 
+               if self.channel_outbound {
+                       if let Some(feerate) = self.pending_update_fee.take() {
+                               self.feerate_per_kw = feerate;
+                       }
+               } else {
+                       if let Some(feerate) = self.pending_update_fee {
+                               // Because a node cannot send two commitment_signed's in a row without getting a
+                               // revoke_and_ack from us (as it would otherwise not know the per_commitment_point
+                               // it should use to create keys with) and because a node can't send a
+                               // commitment_signed without changes, checking if the feerate is equal to the
+                               // pending feerate update is sufficient to detect require_commitment.
+                               if feerate == self.feerate_per_kw {
+                                       require_commitment = true;
+                                       self.pending_update_fee = None;
+                               }
+                       }
+               }
+
                match self.free_holding_cell_htlcs()? {
                        Some(mut commitment_update) => {
                                commitment_update.0.update_fail_htlcs.reserve(update_fail_htlcs.len());
@@ -1752,6 +1942,7 @@ impl Channel {
                                                update_fulfill_htlcs: Vec::new(),
                                                update_fail_htlcs,
                                                update_fail_malformed_htlcs,
+                                               update_fee: None,
                                                commitment_signed
                                        }), to_forward_infos, revoked_htlcs, monitor_update))
                                } else {
@@ -1759,26 +1950,281 @@ impl Channel {
                                }
                        }
                }
+
+       }
+
+       /// Adds a pending update to this channel. See the doc for send_htlc for
+       /// further details on the optionness of the return value.
+       /// You MUST call send_commitment prior to any other calls on this Channel
+       fn send_update_fee(&mut self, feerate_per_kw: u64) -> Option<msgs::UpdateFee> {
+               if !self.channel_outbound {
+                       panic!("Cannot send fee from inbound channel");
+               }
+               if !self.is_usable() {
+                       panic!("Cannot update fee until channel is fully established and we haven't started shutting down");
+               }
+               if !self.is_live() {
+                       panic!("Cannot update fee while peer is disconnected (ChannelManager should have caught this)");
+               }
+
+               if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == (ChannelState::AwaitingRemoteRevoke as u32) {
+                       self.holding_cell_update_fee = Some(feerate_per_kw);
+                       return None;
+               }
+
+               debug_assert!(self.pending_update_fee.is_none());
+               self.pending_update_fee = Some(feerate_per_kw);
+
+               Some(msgs::UpdateFee {
+                       channel_id: self.channel_id,
+                       feerate_per_kw: feerate_per_kw as u32,
+               })
+       }
+
+       pub fn send_update_fee_and_commit(&mut self, feerate_per_kw: u64) -> Result<Option<(msgs::UpdateFee, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
+               match self.send_update_fee(feerate_per_kw) {
+                       Some(update_fee) => {
+                               let (commitment_signed, monitor_update) = self.send_commitment_no_status_check()?;
+                               Ok(Some((update_fee, commitment_signed, monitor_update)))
+                       },
+                       None => Ok(None)
+               }
+       }
+
+       /// Removes any uncommitted HTLCs, to be used on peer disconnection, including any pending
+       /// HTLCs that we intended to add but haven't as we were waiting on a remote revoke.
+       /// Returns the set of PendingHTLCStatuses from remote uncommitted HTLCs (which we're
+       /// implicitly dropping) and the payment_hashes of HTLCs we tried to add but are dropping.
+       /// No further message handling calls may be made until a channel_reestablish dance has
+       /// completed.
+       pub fn remove_uncommitted_htlcs_and_mark_paused(&mut self) -> Vec<(HTLCSource, [u8; 32])> {
+               let mut outbound_drops = Vec::new();
+
+               assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
+               if self.channel_state < ChannelState::FundingSent as u32 {
+                       self.channel_state = ChannelState::ShutdownComplete as u32;
+                       return outbound_drops;
+               }
+
+               let mut inbound_drop_count = 0;
+               self.pending_inbound_htlcs.retain(|htlc| {
+                       match htlc.state {
+                               InboundHTLCState::RemoteAnnounced(_) => {
+                                       // They sent us an update_add_htlc but we never got the commitment_signed.
+                                       // We'll tell them what commitment_signed we're expecting next and they'll drop
+                                       // this HTLC accordingly
+                                       inbound_drop_count += 1;
+                                       false
+                               },
+                               InboundHTLCState::AwaitingRemoteRevokeToAnnounce(_)|InboundHTLCState::AwaitingAnnouncedRemoteRevoke(_) => {
+                                       // We received a commitment_signed updating this HTLC and (at least hopefully)
+                                       // sent a revoke_and_ack (which we can re-transmit) and have heard nothing
+                                       // in response to it yet, so don't touch it.
+                                       true
+                               },
+                               InboundHTLCState::Committed => true,
+                               InboundHTLCState::LocalRemoved(_) => {
+                                       // We (hopefully) sent a commitment_signed updating this HTLC (which we can
+                                       // re-transmit if needed) and they may have even sent a revoke_and_ack back
+                                       // (that we missed). Keep this around for now and if they tell us they missed
+                                       // the commitment_signed we can re-transmit the update then.
+                                       true
+                               },
+                       }
+               });
+
+               for htlc in self.pending_outbound_htlcs.iter_mut() {
+                       if let OutboundHTLCState::RemoteRemoved = htlc.state {
+                               // They sent us an update to remove this but haven't yet sent the corresponding
+                               // commitment_signed, we need to move it back to Committed and they can re-send
+                               // the update upon reconnection.
+                               htlc.state = OutboundHTLCState::Committed;
+                       }
+               }
+
+               self.holding_cell_htlc_updates.retain(|htlc_update| {
+                       match htlc_update {
+                               &HTLCUpdateAwaitingACK::AddHTLC { ref payment_hash, ref source, .. } => {
+                                       outbound_drops.push((source.clone(), payment_hash.clone()));
+                                       false
+                               },
+                               &HTLCUpdateAwaitingACK::ClaimHTLC {..} | &HTLCUpdateAwaitingACK::FailHTLC {..} => true,
+                       }
+               });
+               self.channel_state |= ChannelState::PeerDisconnected as u32;
+               log_debug!(self, "Peer disconnection resulted in {} remote-announced HTLC drops and {} waiting-to-locally-announced HTLC drops on channel {}", outbound_drops.len(), inbound_drop_count, log_bytes!(self.channel_id()));
+               outbound_drops
        }
 
-       pub fn update_fee(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::UpdateFee) -> Result<(), HandleError> {
+       pub fn update_fee(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::UpdateFee) -> Result<(), ChannelError> {
                if self.channel_outbound {
-                       return Err(HandleError{err: "Non-funding remote tried to update channel fee", action: None});
+                       return Err(ChannelError::Close("Non-funding remote tried to update channel fee"));
+               }
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(ChannelError::Close("Peer sent update_fee when we needed a channel_reestablish"));
                }
                Channel::check_remote_fee(fee_estimator, msg.feerate_per_kw)?;
+
+               self.pending_update_fee = Some(msg.feerate_per_kw as u64);
                self.channel_update_count += 1;
-               self.feerate_per_kw = msg.feerate_per_kw as u64;
                Ok(())
        }
 
-       pub fn shutdown(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::Shutdown) -> Result<(Option<msgs::Shutdown>, Option<msgs::ClosingSigned>, Vec<[u8; 32]>), HandleError> {
+       /// May panic if some calls other than message-handling calls (which will all Err immediately)
+       /// have been called between remove_uncommitted_htlcs_and_mark_paused and this call.
+       pub fn channel_reestablish(&mut self, msg: &msgs::ChannelReestablish) -> Result<(Option<msgs::FundingLocked>, Option<msgs::RevokeAndACK>, Option<msgs::CommitmentUpdate>, Option<ChannelMonitor>, RAACommitmentOrder), ChannelError> {
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == 0 {
+                       // While BOLT 2 doesn't indicate explicitly we should error this channel here, it
+                       // almost certainly indicates we are going to end up out-of-sync in some way, so we
+                       // just close here instead of trying to recover.
+                       return Err(ChannelError::Close("Peer sent a loose channel_reestablish not after reconnect"));
+               }
+
+               if msg.next_local_commitment_number == 0 || msg.next_local_commitment_number >= INITIAL_COMMITMENT_NUMBER ||
+                               msg.next_remote_commitment_number == 0 || msg.next_remote_commitment_number >= INITIAL_COMMITMENT_NUMBER {
+                       return Err(ChannelError::Close("Peer sent a garbage channel_reestablish"));
+               }
+
+               // Go ahead and unmark PeerDisconnected as various calls we may make check for it (and all
+               // remaining cases either succeed or ErrorMessage-fail).
+               self.channel_state &= !(ChannelState::PeerDisconnected as u32);
+
+               let required_revoke = if msg.next_remote_commitment_number == INITIAL_COMMITMENT_NUMBER - self.cur_local_commitment_transaction_number {
+                       // Remote isn't waiting on any RevokeAndACK from us!
+                       // Note that if we need to repeat our FundingLocked we'll do that in the next if block.
+                       None
+               } else if msg.next_remote_commitment_number == (INITIAL_COMMITMENT_NUMBER - 1) - self.cur_local_commitment_transaction_number {
+                       let next_per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(self.cur_local_commitment_transaction_number));
+                       let per_commitment_secret = chan_utils::build_commitment_secret(self.local_keys.commitment_seed, self.cur_local_commitment_transaction_number + 2);
+                       Some(msgs::RevokeAndACK {
+                               channel_id: self.channel_id,
+                               per_commitment_secret,
+                               next_per_commitment_point,
+                       })
+               } else {
+                       return Err(ChannelError::Close("Peer attempted to reestablish channel with a very old local commitment transaction"));
+               };
+
+               // We increment cur_remote_commitment_transaction_number only upon receipt of
+               // revoke_and_ack, not on sending commitment_signed, so we add one if have
+               // AwaitingRemoteRevoke set, which indicates we sent a commitment_signed but haven't gotten
+               // the corresponding revoke_and_ack back yet.
+               let our_next_remote_commitment_number = INITIAL_COMMITMENT_NUMBER - self.cur_remote_commitment_transaction_number + if (self.channel_state & ChannelState::AwaitingRemoteRevoke as u32) != 0 { 1 } else { 0 };
+
+               let resend_funding_locked = if msg.next_local_commitment_number == 1 && INITIAL_COMMITMENT_NUMBER - self.cur_local_commitment_transaction_number == 1 {
+                       let next_per_commitment_secret = self.build_local_commitment_secret(self.cur_local_commitment_transaction_number);
+                       let next_per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &next_per_commitment_secret);
+                       Some(msgs::FundingLocked {
+                               channel_id: self.channel_id(),
+                               next_per_commitment_point: next_per_commitment_point,
+                       })
+               } else { None };
+
+               let order = RAACommitmentOrder::RevokeAndACKFirst;
+
+               if msg.next_local_commitment_number == our_next_remote_commitment_number {
+                       if required_revoke.is_some() {
+                               log_debug!(self, "Reconnected channel {} with only lost outbound RAA", log_bytes!(self.channel_id()));
+                       } else {
+                               log_debug!(self, "Reconnected channel {} with no loss", log_bytes!(self.channel_id()));
+                       }
+
+                       if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == 0 {
+                               // We're up-to-date and not waiting on a remote revoke (if we are our
+                               // channel_reestablish should result in them sending a revoke_and_ack), but we may
+                               // have received some updates while we were disconnected. Free the holding cell
+                               // now!
+                               match self.free_holding_cell_htlcs() {
+                                       Err(e) => {
+                                               if let &Some(msgs::ErrorAction::DisconnectPeer{msg: Some(_)}) = &e.action {
+                                                       return Err(ChannelError::Close(e.err));
+                                               } else if let &Some(msgs::ErrorAction::SendErrorMessage{msg: _}) = &e.action {
+                                                       return Err(ChannelError::Close(e.err));
+                                               } else {
+                                                       panic!("Got non-channel-failing result from free_holding_cell_htlcs");
+                                               }
+                                       },
+                                       Ok(Some((commitment_update, channel_monitor))) => return Ok((resend_funding_locked, required_revoke, Some(commitment_update), Some(channel_monitor), order)),
+                                       Ok(None) => return Ok((resend_funding_locked, required_revoke, None, None, order)),
+                               }
+                       } else {
+                               return Ok((resend_funding_locked, required_revoke, None, None, order));
+                       }
+               } else if msg.next_local_commitment_number == our_next_remote_commitment_number - 1 {
+                       if required_revoke.is_some() {
+                               log_debug!(self, "Reconnected channel {} with lost outbound RAA and lost remote commitment tx", log_bytes!(self.channel_id()));
+                       } else {
+                               log_debug!(self, "Reconnected channel {} with only lost remote commitment tx", log_bytes!(self.channel_id()));
+                       }
+                       let mut update_add_htlcs = Vec::new();
+                       let mut update_fulfill_htlcs = Vec::new();
+                       let mut update_fail_htlcs = Vec::new();
+                       let mut update_fail_malformed_htlcs = Vec::new();
+
+                       for htlc in self.pending_outbound_htlcs.iter() {
+                               if let &OutboundHTLCState::LocalAnnounced(ref onion_packet) = &htlc.state {
+                                       update_add_htlcs.push(msgs::UpdateAddHTLC {
+                                               channel_id: self.channel_id(),
+                                               htlc_id: htlc.htlc_id,
+                                               amount_msat: htlc.amount_msat,
+                                               payment_hash: htlc.payment_hash,
+                                               cltv_expiry: htlc.cltv_expiry,
+                                               onion_routing_packet: (**onion_packet).clone(),
+                                       });
+                               }
+                       }
+
+                       for htlc in self.pending_inbound_htlcs.iter() {
+                               if let &InboundHTLCState::LocalRemoved(ref reason) = &htlc.state {
+                                       match reason {
+                                               &InboundHTLCRemovalReason::FailRelay(ref err_packet) => {
+                                                       update_fail_htlcs.push(msgs::UpdateFailHTLC {
+                                                               channel_id: self.channel_id(),
+                                                               htlc_id: htlc.htlc_id,
+                                                               reason: err_packet.clone()
+                                                       });
+                                               },
+                                               &InboundHTLCRemovalReason::FailMalformed((ref sha256_of_onion, ref failure_code)) => {
+                                                       update_fail_malformed_htlcs.push(msgs::UpdateFailMalformedHTLC {
+                                                               channel_id: self.channel_id(),
+                                                               htlc_id: htlc.htlc_id,
+                                                               sha256_of_onion: sha256_of_onion.clone(),
+                                                               failure_code: failure_code.clone(),
+                                                       });
+                                               },
+                                               &InboundHTLCRemovalReason::Fulfill(ref payment_preimage) => {
+                                                       update_fulfill_htlcs.push(msgs::UpdateFulfillHTLC {
+                                                               channel_id: self.channel_id(),
+                                                               htlc_id: htlc.htlc_id,
+                                                               payment_preimage: payment_preimage.clone(),
+                                                       });
+                                               },
+                                       }
+                               }
+                       }
+
+                       return Ok((resend_funding_locked, required_revoke,
+                                       Some(msgs::CommitmentUpdate {
+                                               update_add_htlcs, update_fulfill_htlcs, update_fail_htlcs, update_fail_malformed_htlcs,
+                                               update_fee: None, //TODO: We need to support re-generating any update_fees in the last commitment_signed!
+                                               commitment_signed: self.send_commitment_no_state_update().expect("It looks like we failed to re-generate a commitment_signed we had previously sent?").0,
+                                       }), None, order));
+               } else {
+                       return Err(ChannelError::Close("Peer attempted to reestablish channel with a very old remote commitment transaction"));
+               }
+       }
+
+       pub fn shutdown(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::Shutdown) -> Result<(Option<msgs::Shutdown>, Option<msgs::ClosingSigned>, Vec<(HTLCSource, [u8; 32])>), HandleError> {
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(HandleError{err: "Peer sent shutdown when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent shutdown when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+               }
                if self.channel_state < ChannelState::FundingSent as u32 {
                        self.channel_state = ChannelState::ShutdownComplete as u32;
                        self.channel_update_count += 1;
                        return Ok((None, None, Vec::new()));
                }
-               for htlc in self.pending_htlcs.iter() {
-                       if htlc.state == HTLCState::RemoteAnnounced {
+               for htlc in self.pending_inbound_htlcs.iter() {
+                       if let InboundHTLCState::RemoteAnnounced(_) = htlc.state {
                                return Err(HandleError{err: "Got shutdown with remote pending HTLCs", action: None});
                        }
                }
@@ -1792,7 +2238,12 @@ impl Channel {
                if self.channel_outbound && msg.scriptpubkey.len() > 34 {
                        return Err(HandleError{err: "Got shutdown_scriptpubkey of absurd length from remote peer", action: None});
                }
-               //TODO: Check shutdown_scriptpubkey form as BOLT says we must? WHYYY
+
+               //Check shutdown_scriptpubkey form as BOLT says we must
+               if !(msg.scriptpubkey.is_p2pkh()) && !(msg.scriptpubkey.is_p2sh())
+                       && !(msg.scriptpubkey.is_v0_p2wpkh()) && !(msg.scriptpubkey.is_v0_p2wsh()){
+                       return Err(HandleError{err: "Got an invalid scriptpubkey from remote peer", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+               }
 
                if self.their_shutdown_scriptpubkey.is_some() {
                        if Some(&msg.scriptpubkey) != self.their_shutdown_scriptpubkey.as_ref() {
@@ -1804,7 +2255,7 @@ impl Channel {
 
                let our_closing_script = self.get_closing_scriptpubkey();
 
-               let (proposed_feerate, proposed_fee, our_sig) = if self.channel_outbound && self.pending_htlcs.is_empty() {
+               let (proposed_feerate, proposed_fee, our_sig) = if self.channel_outbound && self.pending_inbound_htlcs.is_empty() && self.pending_outbound_htlcs.is_empty() {
                        let mut proposed_feerate = fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Background);
                        if self.feerate_per_kw > proposed_feerate {
                                proposed_feerate = self.feerate_per_kw;
@@ -1830,15 +2281,15 @@ impl Channel {
                let mut dropped_outbound_htlcs = Vec::with_capacity(self.holding_cell_htlc_updates.len());
                self.holding_cell_htlc_updates.retain(|htlc_update| {
                        match htlc_update {
-                               &HTLCUpdateAwaitingACK::AddHTLC { ref payment_hash, .. } => {
-                                       dropped_outbound_htlcs.push(payment_hash.clone());
+                               &HTLCUpdateAwaitingACK::AddHTLC { ref payment_hash, ref source, .. } => {
+                                       dropped_outbound_htlcs.push((source.clone(), payment_hash.clone()));
                                        false
                                },
                                _ => true
                        }
                });
-               for htlc in self.pending_htlcs.iter() {
-                       if htlc.state == HTLCState::LocalAnnounced {
+               for htlc in self.pending_outbound_htlcs.iter() {
+                       if let OutboundHTLCState::LocalAnnounced(_) = htlc.state {
                                return Ok((None, None, dropped_outbound_htlcs));
                        }
                }
@@ -1854,7 +2305,7 @@ impl Channel {
 
                self.channel_state |= ChannelState::LocalShutdownSent as u32;
                self.channel_update_count += 1;
-               if self.pending_htlcs.is_empty() && self.channel_outbound {
+               if self.pending_inbound_htlcs.is_empty() && self.pending_outbound_htlcs.is_empty() && self.channel_outbound {
                        // There are no more HTLCs and we're the funder, this means we start the closing_signed
                        // dance with an initial fee proposal!
                        self.last_sent_closing_fee = Some((proposed_feerate.unwrap(), proposed_fee.unwrap()));
@@ -1872,10 +2323,13 @@ impl Channel {
                if self.channel_state & BOTH_SIDES_SHUTDOWN_MASK != BOTH_SIDES_SHUTDOWN_MASK {
                        return Err(HandleError{err: "Remote end sent us a closing_signed before both sides provided a shutdown", action: None});
                }
-               if !self.pending_htlcs.is_empty() {
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(HandleError{err: "Peer sent closing_signed when we needed a channel_reestablish", action: Some(msgs::ErrorAction::SendErrorMessage{msg: msgs::ErrorMessage{data: "Peer sent closing_signed when we needed a channel_reestablish".to_string(), channel_id: msg.channel_id}})});
+               }
+               if !self.pending_inbound_htlcs.is_empty() || !self.pending_outbound_htlcs.is_empty() {
                        return Err(HandleError{err: "Remote end sent us a closing_signed while there were still pending HTLCs", action: None});
                }
-               if msg.fee_satoshis > 21000000 * 10000000 {
+               if msg.fee_satoshis > 21000000 * 10000000 { //this is required to stop potential overflow in build_closing_transaction
                        return Err(HandleError{err: "Remote tried to send us a closing tx with > 21 million BTC fee", action: None});
                }
 
@@ -1893,7 +2347,7 @@ impl Channel {
                                // limits, so check for that case by re-checking the signature here.
                                closing_tx = self.build_closing_transaction(msg.fee_satoshis, true).0;
                                sighash = Message::from_slice(&bip143::SighashComponents::new(&closing_tx).sighash_all(&closing_tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
-                               secp_call!(self.secp_ctx.verify(&sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid closing tx signature from peer");
+                               secp_call!(self.secp_ctx.verify(&sighash, &msg.signature, &self.their_funding_pubkey.unwrap()), "Invalid closing tx signature from peer", self.channel_id());
                        },
                };
 
@@ -1998,10 +2452,50 @@ impl Channel {
                self.our_htlc_minimum_msat
        }
 
+       /// Allowed in any state (including after shutdown)
+       pub fn get_their_htlc_minimum_msat(&self) -> u64 {
+               self.our_htlc_minimum_msat
+       }
+
        pub fn get_value_satoshis(&self) -> u64 {
                self.channel_value_satoshis
        }
 
+       #[cfg(test)]
+       pub fn get_feerate(&self) -> u64 {
+               self.feerate_per_kw
+       }
+
+       //TODO: Testing purpose only, should be changed in another way after #81
+       #[cfg(test)]
+       pub fn get_local_keys(&self) -> &ChannelKeys {
+               &self.local_keys
+       }
+
+       #[cfg(test)]
+       pub fn get_value_stat(&self) -> ChannelValueStat {
+               ChannelValueStat {
+                       value_to_self_msat: self.value_to_self_msat,
+                       channel_value_msat: self.channel_value_satoshis * 1000,
+                       channel_reserve_msat: self.their_channel_reserve_satoshis * 1000,
+                       pending_outbound_htlcs_amount_msat: self.pending_outbound_htlcs.iter().map(|ref h| h.amount_msat).sum::<u64>(),
+                       pending_inbound_htlcs_amount_msat: self.pending_inbound_htlcs.iter().map(|ref h| h.amount_msat).sum::<u64>(),
+                       holding_cell_outbound_amount_msat: {
+                               let mut res = 0;
+                               for h in self.holding_cell_htlc_updates.iter() {
+                                       match h {
+                                               &HTLCUpdateAwaitingACK::AddHTLC{amount_msat, .. } => {
+                                                       res += amount_msat;
+                                               }
+                                               _ => {}
+                                       }
+                               }
+                               res
+                       },
+                       their_max_htlc_value_in_flight_msat: self.their_max_htlc_value_in_flight_msat,
+               }
+       }
+
        /// Allowed in any state (including after shutdown)
        pub fn get_channel_update_count(&self) -> u32 {
                self.channel_update_count
@@ -2011,6 +2505,10 @@ impl Channel {
                self.announce_publicly
        }
 
+       pub fn is_outbound(&self) -> bool {
+               self.channel_outbound
+       }
+
        /// Gets the fee we'd want to charge for adding an HTLC output to this Channel
        /// Allowed in any state (including after shutdown)
        pub fn get_our_fee_base_msat(&self, fee_estimator: &FeeEstimator) -> u32 {
@@ -2031,6 +2529,11 @@ impl Channel {
                res as u32
        }
 
+       /// Returns true if we've ever received a message from the remote end for this Channel
+       pub fn have_received_message(&self) -> bool {
+               self.channel_state > (ChannelState::OurInitSent as u32)
+       }
+
        /// Returns true if this channel is fully established and not known to be closing.
        /// Allowed in any state (including after shutdown)
        pub fn is_usable(&self) -> bool {
@@ -2042,7 +2545,7 @@ impl Channel {
        /// is_usable() and considers things like the channel being temporarily disabled.
        /// Allowed in any state (including after shutdown)
        pub fn is_live(&self) -> bool {
-               self.is_usable()
+               self.is_usable() && (self.channel_state & (ChannelState::PeerDisconnected as u32) == 0)
        }
 
        /// Returns true if funding_created was sent/received.
@@ -2067,7 +2570,7 @@ impl Channel {
        /// apply - no calls may be made except those explicitly stated to be allowed post-shutdown.
        /// Only returns an ErrorAction of DisconnectPeer, if Err.
        pub fn block_connected(&mut self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) -> Result<Option<msgs::FundingLocked>, HandleError> {
-               let non_shutdown_state = self.channel_state & (!BOTH_SIDES_SHUTDOWN_MASK);
+               let non_shutdown_state = self.channel_state & (!MULTI_STATE_FLAGS);
                if self.funding_tx_confirmations > 0 {
                        if header.bitcoin_hash() != self.last_block_connected {
                                self.last_block_connected = header.bitcoin_hash();
@@ -2077,10 +2580,10 @@ impl Channel {
                                                self.channel_state |= ChannelState::OurFundingLocked as u32;
                                                true
                                        } else if non_shutdown_state == (ChannelState::FundingSent as u32 | ChannelState::TheirFundingLocked as u32) {
-                                               self.channel_state = ChannelState::ChannelFunded as u32 | (self.channel_state & BOTH_SIDES_SHUTDOWN_MASK);
+                                               self.channel_state = ChannelState::ChannelFunded as u32 | (self.channel_state & MULTI_STATE_FLAGS);
                                                self.channel_update_count += 1;
                                                true
-                                       } else if self.channel_state == (ChannelState::FundingSent as u32 | ChannelState::OurFundingLocked as u32) {
+                                       } else if non_shutdown_state == (ChannelState::FundingSent as u32 | ChannelState::OurFundingLocked as u32) {
                                                // We got a reorg but not enough to trigger a force close, just update
                                                // funding_tx_confirmed_in and return.
                                                false
@@ -2113,7 +2616,16 @@ impl Channel {
                                if tx.txid() == self.channel_monitor.get_funding_txo().unwrap().txid {
                                        let txo_idx = self.channel_monitor.get_funding_txo().unwrap().index as usize;
                                        if txo_idx >= tx.output.len() || tx.output[txo_idx].script_pubkey != self.get_funding_redeemscript().to_v0_p2wsh() ||
-                                               tx.output[txo_idx].value != self.channel_value_satoshis {
+                                                       tx.output[txo_idx].value != self.channel_value_satoshis {
+                                               if self.channel_outbound {
+                                                       // If we generated the funding transaction and it doesn't match what it
+                                                       // should, the client is really broken and we should just panic and
+                                                       // tell them off. That said, because hash collisions happen with high
+                                                       // probability in fuzztarget mode, if we're fuzzing we just close the
+                                                       // channel and move on.
+                                                       #[cfg(not(feature = "fuzztarget"))]
+                                                       panic!("Client called ChannelManager::funding_transaction_generated with bogus transaction!");
+                                               }
                                                self.channel_state = ChannelState::ShutdownComplete as u32;
                                                self.channel_update_count += 1;
                                                return Err(HandleError{err: "funding tx had wrong script/value", action: Some(ErrorAction::DisconnectPeer{msg: None})});
@@ -2148,7 +2660,7 @@ impl Channel {
        // Methods to get unprompted messages to send to the remote end (or where we already returned
        // something in the handler for the message that prompted this message):
 
-       pub fn get_open_channel(&self, chain_hash: Sha256dHash, fee_estimator: &FeeEstimator) -> Result<msgs::OpenChannel, APIError> {
+       pub fn get_open_channel(&self, chain_hash: Sha256dHash, fee_estimator: &FeeEstimator) -> msgs::OpenChannel {
                if !self.channel_outbound {
                        panic!("Tried to open a channel for an inbound channel?");
                }
@@ -2156,13 +2668,13 @@ impl Channel {
                        panic!("Cannot generate an open_channel after we've moved forward");
                }
 
-               if self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
+               if self.cur_local_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER {
                        panic!("Tried to send an open_channel for a channel that has already advanced");
                }
 
                let local_commitment_secret = self.build_local_commitment_secret(self.cur_local_commitment_transaction_number);
 
-               Ok(msgs::OpenChannel {
+               msgs::OpenChannel {
                        chain_hash: chain_hash,
                        temporary_channel_id: self.channel_id,
                        funding_satoshis: self.channel_value_satoshis,
@@ -2182,23 +2694,23 @@ impl Channel {
                        first_per_commitment_point: PublicKey::from_secret_key(&self.secp_ctx, &local_commitment_secret),
                        channel_flags: if self.announce_publicly {1} else {0},
                        shutdown_scriptpubkey: None,
-               })
+               }
        }
 
-       pub fn get_accept_channel(&self) -> Result<msgs::AcceptChannel, HandleError> {
+       pub fn get_accept_channel(&self) -> msgs::AcceptChannel {
                if self.channel_outbound {
                        panic!("Tried to send accept_channel for an outbound channel?");
                }
                if self.channel_state != (ChannelState::OurInitSent as u32) | (ChannelState::TheirInitSent as u32) {
                        panic!("Tried to send accept_channel after channel had moved forward");
                }
-               if self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
+               if self.cur_local_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER {
                        panic!("Tried to send an accept_channel for a channel that has already advanced");
                }
 
                let local_commitment_secret = self.build_local_commitment_secret(self.cur_local_commitment_transaction_number);
 
-               Ok(msgs::AcceptChannel {
+               msgs::AcceptChannel {
                        temporary_channel_id: self.channel_id,
                        dust_limit_satoshis: self.our_dust_limit_satoshis,
                        max_htlc_value_in_flight_msat: Channel::get_our_max_htlc_value_in_flight_msat(self.channel_value_satoshis),
@@ -2214,14 +2726,14 @@ impl Channel {
                        htlc_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key),
                        first_per_commitment_point: PublicKey::from_secret_key(&self.secp_ctx, &local_commitment_secret),
                        shutdown_scriptpubkey: None,
-               })
+               }
        }
 
        fn get_outbound_funding_created_signature(&mut self) -> Result<(Signature, Transaction), HandleError> {
                let funding_script = self.get_funding_redeemscript();
 
                let remote_keys = self.build_remote_transaction_keys()?;
-               let remote_initial_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, false).0;
+               let remote_initial_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, false, self.feerate_per_kw).0;
                let remote_sighash = Message::from_slice(&bip143::SighashComponents::new(&remote_initial_commitment_tx).sighash_all(&remote_initial_commitment_tx.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
 
                // We sign the "remote" commitment transaction, allowing them to broadcast the tx if they wish.
@@ -2241,7 +2753,9 @@ impl Channel {
                if self.channel_state != (ChannelState::OurInitSent as u32 | ChannelState::TheirInitSent as u32) {
                        panic!("Tried to get a funding_created messsage at a time other than immediately after initial handshake completion (or tried to get funding_created twice)");
                }
-               if self.channel_monitor.get_min_seen_secret() != (1 << 48) || self.cur_remote_commitment_transaction_number != (1 << 48) - 1 || self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
+               if self.channel_monitor.get_min_seen_secret() != (1 << 48) ||
+                               self.cur_remote_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER ||
+                               self.cur_local_commitment_transaction_number != INITIAL_COMMITMENT_NUMBER {
                        panic!("Should not have advanced channel commitment tx numbers prior to funding_created");
                }
 
@@ -2281,15 +2795,15 @@ impl Channel {
        /// closing).
        /// Note that the "channel must be funded" requirement is stricter than BOLT 7 requires - see
        /// https://github.com/lightningnetwork/lightning-rfc/issues/468
-       pub fn get_channel_announcement(&self, our_node_id: PublicKey, chain_hash: Sha256dHash) -> Result<(msgs::UnsignedChannelAnnouncement, Signature), HandleError> {
+       pub fn get_channel_announcement(&self, our_node_id: PublicKey, chain_hash: Sha256dHash) -> Result<(msgs::UnsignedChannelAnnouncement, Signature), ChannelError> {
                if !self.announce_publicly {
-                       return Err(HandleError{err: "Channel is not available for public announcements", action: None});
+                       return Err(ChannelError::Ignore("Channel is not available for public announcements"));
                }
                if self.channel_state & (ChannelState::ChannelFunded as u32) == 0 {
-                       return Err(HandleError{err: "Cannot get a ChannelAnnouncement until the channel funding has been locked", action: None});
+                       return Err(ChannelError::Ignore("Cannot get a ChannelAnnouncement until the channel funding has been locked"));
                }
                if (self.channel_state & (ChannelState::LocalShutdownSent as u32 | ChannelState::ShutdownComplete as u32)) != 0 {
-                       return Err(HandleError{err: "Cannot get a ChannelAnnouncement once the channel is closing", action: None});
+                       return Err(ChannelError::Ignore("Cannot get a ChannelAnnouncement once the channel is closing"));
                }
 
                let were_node_one = our_node_id.serialize()[..] < self.their_node_id.serialize()[..];
@@ -2303,6 +2817,7 @@ impl Channel {
                        node_id_2: if were_node_one { self.get_their_node_id() } else { our_node_id },
                        bitcoin_key_1: if were_node_one { our_bitcoin_key } else { self.their_funding_pubkey.unwrap() },
                        bitcoin_key_2: if were_node_one { self.their_funding_pubkey.unwrap() } else { our_bitcoin_key },
+                       excess_data: Vec::new(),
                };
 
                let msghash = Message::from_slice(&Sha256dHash::from_data(&msg.encode()[..])[..]).unwrap();
@@ -2311,6 +2826,18 @@ impl Channel {
                Ok((msg, sig))
        }
 
+       /// May panic if called on a channel that wasn't immediately-previously
+       /// self.remove_uncommitted_htlcs_and_mark_paused()'d
+       pub fn get_channel_reestablish(&self) -> msgs::ChannelReestablish {
+               assert_eq!(self.channel_state & ChannelState::PeerDisconnected as u32, ChannelState::PeerDisconnected as u32);
+               msgs::ChannelReestablish {
+                       channel_id: self.channel_id(),
+                       next_local_commitment_number: INITIAL_COMMITMENT_NUMBER - self.cur_local_commitment_transaction_number,
+                       next_remote_commitment_number: INITIAL_COMMITMENT_NUMBER - self.cur_remote_commitment_transaction_number,
+                       data_loss_protect: None,
+               }
+       }
+
 
        // Send stuff to our remote peers:
 
@@ -2319,7 +2846,8 @@ impl Channel {
        /// This returns an option instead of a pure UpdateAddHTLC as we may be in a state where we are
        /// waiting on the remote peer to send us a revoke_and_ack during which time we cannot add new
        /// HTLCs on the wire or we wouldn't be able to determine what they actually ACK'ed.
-       pub fn send_htlc(&mut self, amount_msat: u64, payment_hash: [u8; 32], cltv_expiry: u32, onion_routing_packet: msgs::OnionPacket) -> Result<Option<msgs::UpdateAddHTLC>, HandleError> {
+       /// You MUST call send_commitment prior to any other calls on this Channel
+       pub fn send_htlc(&mut self, amount_msat: u64, payment_hash: [u8; 32], cltv_expiry: u32, source: HTLCSource, onion_routing_packet: msgs::OnionPacket) -> Result<Option<msgs::UpdateAddHTLC>, HandleError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32 | BOTH_SIDES_SHUTDOWN_MASK)) != (ChannelState::ChannelFunded as u32) {
                        return Err(HandleError{err: "Cannot send HTLC until channel is fully established and we haven't started shutting down", action: None});
                }
@@ -2331,7 +2859,17 @@ impl Channel {
                        return Err(HandleError{err: "Cannot send less than their minimum HTLC value", action: None});
                }
 
-               let (_, outbound_htlc_count, htlc_outbound_value_msat, htlc_inbound_value_msat) = self.get_pending_htlc_stats(false);
+               if (self.channel_state & (ChannelState::PeerDisconnected as u32)) == (ChannelState::PeerDisconnected as u32) {
+                       // Note that this should never really happen, if we're !is_live() on receipt of an
+                       // incoming HTLC for relay will result in us rejecting the HTLC and we won't allow
+                       // the user to send directly into a !is_live() channel. However, if we
+                       // disconnected during the time the previous hop was doing the commitment dance we may
+                       // end up getting here after the forwarding delay. In any case, returning an
+                       // IgnoreError will get ChannelManager to do the right thing and fail backwards now.
+                       return Err(HandleError{err: "Cannot send an HTLC while disconnected", action: Some(ErrorAction::IgnoreError)});
+               }
+
+               let (outbound_htlc_count, htlc_outbound_value_msat) = self.get_outbound_pending_htlc_stats();
                if outbound_htlc_count + 1 > self.their_max_accepted_htlcs as u32 {
                        return Err(HandleError{err: "Cannot push more than their max accepted HTLCs", action: None});
                }
@@ -2340,8 +2878,20 @@ impl Channel {
                if htlc_outbound_value_msat + amount_msat > self.their_max_htlc_value_in_flight_msat {
                        return Err(HandleError{err: "Cannot send value that would put us over our max HTLC value in flight", action: None});
                }
-               // Check their_channel_reserve_satoshis:
-               if htlc_inbound_value_msat + htlc_outbound_value_msat + amount_msat + (self.channel_value_satoshis * 1000 - self.value_to_self_msat) > (self.channel_value_satoshis - self.their_channel_reserve_satoshis) * 1000 {
+
+               let mut holding_cell_outbound_amount_msat = 0;
+               for holding_htlc in self.holding_cell_htlc_updates.iter() {
+                       match holding_htlc {
+                               &HTLCUpdateAwaitingACK::AddHTLC { ref amount_msat, .. } => {
+                                       holding_cell_outbound_amount_msat += *amount_msat;
+                               }
+                               _ => {}
+                       }
+               }
+
+               // Check self.their_channel_reserve_satoshis (the amount we must keep as
+               // reserve for them to have something to claim if we misbehave)
+               if self.value_to_self_msat < self.their_channel_reserve_satoshis * 1000 + amount_msat + holding_cell_outbound_amount_msat + htlc_outbound_value_msat {
                        return Err(HandleError{err: "Cannot send value that would put us over our reserve value", action: None});
                }
 
@@ -2354,22 +2904,21 @@ impl Channel {
                                amount_msat: amount_msat,
                                payment_hash: payment_hash,
                                cltv_expiry: cltv_expiry,
+                               source,
                                onion_routing_packet: onion_routing_packet,
                                time_created: Instant::now(),
                        });
                        return Ok(None);
                }
 
-               self.pending_htlcs.push(HTLCOutput {
-                       outbound: true,
+               self.pending_outbound_htlcs.push(OutboundHTLCOutput {
                        htlc_id: self.next_local_htlc_id,
                        amount_msat: amount_msat,
                        payment_hash: payment_hash.clone(),
                        cltv_expiry: cltv_expiry,
-                       state: HTLCState::LocalAnnounced,
+                       state: OutboundHTLCState::LocalAnnounced(Box::new(onion_routing_packet.clone())),
+                       source,
                        fail_reason: None,
-                       local_removed_fulfilled: false,
-                       pending_forward_state: None
                });
 
                let res = msgs::UpdateAddHTLC {
@@ -2386,42 +2935,75 @@ impl Channel {
        }
 
        /// Creates a signed commitment transaction to send to the remote peer.
+       /// Always returns a Channel-failing HandleError::action if an immediately-preceding (read: the
+       /// last call to this Channel) send_htlc returned Ok(Some(_)) and there is an Err.
+       /// May panic if called except immediately after a successful, Ok(Some(_))-returning send_htlc.
        pub fn send_commitment(&mut self) -> Result<(msgs::CommitmentSigned, ChannelMonitor), HandleError> {
                if (self.channel_state & (ChannelState::ChannelFunded as u32)) != (ChannelState::ChannelFunded as u32) {
-                       return Err(HandleError{err: "Cannot create commitment tx until channel is fully established", action: None});
+                       panic!("Cannot create commitment tx until channel is fully established");
                }
                if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == (ChannelState::AwaitingRemoteRevoke as u32) {
-                       return Err(HandleError{err: "Cannot create commitment tx until remote revokes their previous commitment", action: None});
+                       panic!("Cannot create commitment tx until remote revokes their previous commitment");
+               }
+               if (self.channel_state & (ChannelState::PeerDisconnected as u32)) == (ChannelState::PeerDisconnected as u32) {
+                       panic!("Cannot create commitment tx while disconnected, as send_htlc will have returned an Err so a send_commitment precondition has been violated");
                }
-               let mut have_updates = false; // TODO initialize with "have we sent a fee update?"
-               for htlc in self.pending_htlcs.iter() {
-                       if htlc.state == HTLCState::LocalAnnounced {
+               let mut have_updates = self.pending_update_fee.is_some();
+               for htlc in self.pending_outbound_htlcs.iter() {
+                       if let OutboundHTLCState::LocalAnnounced(_) = htlc.state {
                                have_updates = true;
                        }
                        if have_updates { break; }
                }
                if !have_updates {
-                       return Err(HandleError{err: "Cannot create commitment tx until we have some updates to send", action: None});
+                       panic!("Cannot create commitment tx until we have some updates to send");
                }
                self.send_commitment_no_status_check()
        }
        /// Only fails in case of bad keys
        fn send_commitment_no_status_check(&mut self) -> Result<(msgs::CommitmentSigned, ChannelMonitor), HandleError> {
-               let funding_script = self.get_funding_redeemscript();
-
                // We can upgrade the status of some HTLCs that are waiting on a commitment, even if we
                // fail to generate this, we still are at least at a position where upgrading their status
                // is acceptable.
-               for htlc in self.pending_htlcs.iter_mut() {
-                       if htlc.state == HTLCState::AwaitingRemoteRevokeToAnnounce {
-                               htlc.state = HTLCState::AwaitingAnnouncedRemoteRevoke;
-                       } else if htlc.state == HTLCState::AwaitingRemoteRevokeToRemove {
-                               htlc.state = HTLCState::AwaitingRemovedRemoteRevoke;
+               for htlc in self.pending_inbound_htlcs.iter_mut() {
+                       let new_state = if let &InboundHTLCState::AwaitingRemoteRevokeToAnnounce(ref forward_info) = &htlc.state {
+                               Some(InboundHTLCState::AwaitingAnnouncedRemoteRevoke(forward_info.clone()))
+                       } else { None };
+                       if let Some(state) = new_state {
+                               htlc.state = state;
+                       }
+               }
+               for htlc in self.pending_outbound_htlcs.iter_mut() {
+                       if let OutboundHTLCState::AwaitingRemoteRevokeToRemove = htlc.state {
+                               htlc.state = OutboundHTLCState::AwaitingRemovedRemoteRevoke;
+                       }
+               }
+
+               match self.send_commitment_no_state_update() {
+                       Ok((res, remote_commitment_tx)) => {
+                               // Update state now that we've passed all the can-fail calls...
+                               self.channel_monitor.provide_latest_remote_commitment_tx_info(&remote_commitment_tx.0, remote_commitment_tx.1, self.cur_remote_commitment_transaction_number);
+                               self.channel_state |= ChannelState::AwaitingRemoteRevoke as u32;
+                               Ok((res, self.channel_monitor.clone()))
+                       },
+                       Err(e) => Err(e),
+               }
+       }
+
+       /// Only fails in case of bad keys. Used for channel_reestablish commitment_signed generation
+       /// when we shouldn't change HTLC/channel state.
+       fn send_commitment_no_state_update(&self) -> Result<(msgs::CommitmentSigned, (Transaction, Vec<HTLCOutputInCommitment>)), HandleError> {
+               let funding_script = self.get_funding_redeemscript();
+
+               let mut feerate_per_kw = self.feerate_per_kw;
+               if let Some(feerate) = self.pending_update_fee {
+                       if self.channel_outbound {
+                               feerate_per_kw = feerate;
                        }
                }
 
                let remote_keys = self.build_remote_transaction_keys()?;
-               let remote_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, true);
+               let remote_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, true, feerate_per_kw);
                let remote_commitment_txid = remote_commitment_tx.0.txid();
                let remote_sighash = Message::from_slice(&bip143::SighashComponents::new(&remote_commitment_tx.0).sighash_all(&remote_commitment_tx.0.input[0], &funding_script, self.channel_value_satoshis)[..]).unwrap();
                let our_sig = self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key);
@@ -2429,30 +3011,26 @@ impl Channel {
                let mut htlc_sigs = Vec::new();
 
                for ref htlc in remote_commitment_tx.1.iter() {
-                       let htlc_tx = self.build_htlc_transaction(&remote_commitment_txid, htlc, false, &remote_keys);
+                       let htlc_tx = self.build_htlc_transaction(&remote_commitment_txid, htlc, false, &remote_keys, feerate_per_kw);
                        let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &remote_keys);
                        let htlc_sighash = Message::from_slice(&bip143::SighashComponents::new(&htlc_tx).sighash_all(&htlc_tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
-                       let our_htlc_key = secp_derived_key!(chan_utils::derive_private_key(&self.secp_ctx, &remote_keys.per_commitment_point, &self.local_keys.htlc_base_key));
+                       let our_htlc_key = secp_derived_key!(chan_utils::derive_private_key(&self.secp_ctx, &remote_keys.per_commitment_point, &self.local_keys.htlc_base_key), self.channel_id());
                        htlc_sigs.push(self.secp_ctx.sign(&htlc_sighash, &our_htlc_key));
                }
 
-               // Update state now that we've passed all the can-fail calls...
-               self.channel_monitor.provide_latest_remote_commitment_tx_info(&remote_commitment_tx.0, remote_commitment_tx.1, self.cur_remote_commitment_transaction_number);
-               self.channel_state |= ChannelState::AwaitingRemoteRevoke as u32;
-
                Ok((msgs::CommitmentSigned {
                        channel_id: self.channel_id,
                        signature: our_sig,
                        htlc_signatures: htlc_sigs,
-               }, self.channel_monitor.clone()))
+               }, remote_commitment_tx))
        }
 
        /// Adds a pending outbound HTLC to this channel, and creates a signed commitment transaction
        /// to send to the remote peer in one go.
        /// Shorthand for calling send_htlc() followed by send_commitment(), see docs on those for
        /// more info.
-       pub fn send_htlc_and_commit(&mut self, amount_msat: u64, payment_hash: [u8; 32], cltv_expiry: u32, onion_routing_packet: msgs::OnionPacket) -> Result<Option<(msgs::UpdateAddHTLC, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
-               match self.send_htlc(amount_msat, payment_hash, cltv_expiry, onion_routing_packet)? {
+       pub fn send_htlc_and_commit(&mut self, amount_msat: u64, payment_hash: [u8; 32], cltv_expiry: u32, source: HTLCSource, onion_routing_packet: msgs::OnionPacket) -> Result<Option<(msgs::UpdateAddHTLC, msgs::CommitmentSigned, ChannelMonitor)>, HandleError> {
+               match self.send_htlc(amount_msat, payment_hash, cltv_expiry, source, onion_routing_packet)? {
                        Some(update_add_htlc) => {
                                let (commitment_signed, monitor_update) = self.send_commitment_no_status_check()?;
                                Ok(Some((update_add_htlc, commitment_signed, monitor_update)))
@@ -2463,16 +3041,24 @@ impl Channel {
 
        /// Begins the shutdown process, getting a message for the remote peer and returning all
        /// holding cell HTLCs for payment failure.
-       pub fn get_shutdown(&mut self) -> Result<(msgs::Shutdown, Vec<[u8; 32]>), HandleError> {
-               for htlc in self.pending_htlcs.iter() {
-                       if htlc.state == HTLCState::LocalAnnounced {
-                               return Err(HandleError{err: "Cannot begin shutdown with pending HTLCs, call send_commitment first", action: None});
+       pub fn get_shutdown(&mut self) -> Result<(msgs::Shutdown, Vec<(HTLCSource, [u8; 32])>), APIError> {
+               for htlc in self.pending_outbound_htlcs.iter() {
+                       if let OutboundHTLCState::LocalAnnounced(_) = htlc.state {
+                               return Err(APIError::APIMisuseError{err: "Cannot begin shutdown with pending HTLCs. Process pending events first"});
                        }
                }
                if self.channel_state & BOTH_SIDES_SHUTDOWN_MASK != 0 {
-                       return Err(HandleError{err: "Shutdown already in progress", action: None});
+                       if (self.channel_state & ChannelState::LocalShutdownSent as u32) == ChannelState::LocalShutdownSent as u32 {
+                               return Err(APIError::APIMisuseError{err: "Shutdown already in progress"});
+                       }
+                       else if (self.channel_state & ChannelState::RemoteShutdownSent as u32) == ChannelState::RemoteShutdownSent as u32 {
+                               return Err(APIError::ChannelUnavailable{err: "Shutdown already in progress by remote"});
+                       }
                }
                assert_eq!(self.channel_state & ChannelState::ShutdownComplete as u32, 0);
+               if self.channel_state & (ChannelState::PeerDisconnected as u32) == ChannelState::PeerDisconnected as u32 {
+                       return Err(APIError::ChannelUnavailable{err: "Cannot begin shutdown while peer is disconnected, maybe force-close instead?"});
+               }
 
                let our_closing_script = self.get_closing_scriptpubkey();
 
@@ -2490,8 +3076,8 @@ impl Channel {
                let mut dropped_outbound_htlcs = Vec::with_capacity(self.holding_cell_htlc_updates.len());
                self.holding_cell_htlc_updates.retain(|htlc_update| {
                        match htlc_update {
-                               &HTLCUpdateAwaitingACK::AddHTLC { ref payment_hash, .. } => {
-                                       dropped_outbound_htlcs.push(payment_hash.clone());
+                               &HTLCUpdateAwaitingACK::AddHTLC { ref payment_hash, ref source, .. } => {
+                                       dropped_outbound_htlcs.push((source.clone(), payment_hash.clone()));
                                        false
                                },
                                _ => true
@@ -2509,7 +3095,7 @@ impl Channel {
        /// those explicitly stated to be allowed after shutdown completes, eg some simple getters).
        /// Also returns the list of payment_hashes for channels which we can safely fail backwards
        /// immediately (others we will have to allow to time out).
-       pub fn force_shutdown(&mut self) -> (Vec<Transaction>, Vec<[u8; 32]>) {
+       pub fn force_shutdown(&mut self) -> (Vec<Transaction>, Vec<(HTLCSource, [u8; 32])>) {
                assert!(self.channel_state != ChannelState::ShutdownComplete as u32);
 
                // We go ahead and "free" any holding cell HTLCs or HTLCs we haven't yet committed to and
@@ -2517,17 +3103,14 @@ impl Channel {
                let mut dropped_outbound_htlcs = Vec::with_capacity(self.holding_cell_htlc_updates.len());
                for htlc_update in self.holding_cell_htlc_updates.drain(..) {
                        match htlc_update {
-                               HTLCUpdateAwaitingACK::AddHTLC { payment_hash, .. } => {
-                                       dropped_outbound_htlcs.push(payment_hash);
+                               HTLCUpdateAwaitingACK::AddHTLC { source, payment_hash, .. } => {
+                                       dropped_outbound_htlcs.push((source, payment_hash));
                                },
                                _ => {}
                        }
                }
 
-               for htlc in self.pending_htlcs.drain(..) {
-                       if htlc.state == HTLCState::LocalAnnounced {
-                               dropped_outbound_htlcs.push(htlc.payment_hash);
-                       }
+               for _htlc in self.pending_outbound_htlcs.drain(..) {
                        //TODO: Do something with the remaining HTLCs
                        //(we need to have the ChannelManager monitor them so we can claim the inbound HTLCs
                        //which correspond)
@@ -2549,7 +3132,8 @@ mod tests {
        use bitcoin::blockdata::script::Script;
        use bitcoin::blockdata::transaction::Transaction;
        use hex;
-       use ln::channel::{Channel,ChannelKeys,HTLCOutput,HTLCState,HTLCOutputInCommitment,TxCreationKeys};
+       use ln::channelmanager::HTLCSource;
+       use ln::channel::{Channel,ChannelKeys,InboundHTLCOutput,OutboundHTLCOutput,InboundHTLCState,OutboundHTLCState,HTLCOutputInCommitment,TxCreationKeys};
        use ln::channel::MAX_FUNDING_SATOSHIS;
        use ln::chan_utils;
        use chain::chaininterface::{FeeEstimator,ConfirmationTarget};
@@ -2634,7 +3218,7 @@ mod tests {
 
                macro_rules! test_commitment {
                        ( $their_sig_hex: expr, $our_sig_hex: expr, $tx_hex: expr) => {
-                               unsigned_tx = chan.build_commitment_transaction(0xffffffffffff - 42, &keys, true, false);
+                               unsigned_tx = chan.build_commitment_transaction(0xffffffffffff - 42, &keys, true, false, chan.feerate_per_kw);
                                let their_signature = Signature::from_der(&secp_ctx, &hex::decode($their_sig_hex).unwrap()[..]).unwrap();
                                let sighash = Message::from_slice(&bip143::SighashComponents::new(&unsigned_tx.0).sighash_all(&unsigned_tx.0.input[0], &chan.get_funding_redeemscript(), chan.channel_value_satoshis)[..]).unwrap();
                                secp_ctx.verify(&sighash, &their_signature, &chan.their_funding_pubkey.unwrap()).unwrap();
@@ -2651,7 +3235,7 @@ mod tests {
                                let remote_signature = Signature::from_der(&secp_ctx, &hex::decode($their_sig_hex).unwrap()[..]).unwrap();
 
                                let ref htlc = unsigned_tx.1[$htlc_idx];
-                               let mut htlc_tx = chan.build_htlc_transaction(&unsigned_tx.0.txid(), &htlc, true, &keys);
+                               let mut htlc_tx = chan.build_htlc_transaction(&unsigned_tx.0.txid(), &htlc, true, &keys, chan.feerate_per_kw);
                                let htlc_redeemscript = chan_utils::get_htlc_redeemscript(&htlc, &keys);
                                let htlc_sighash = Message::from_slice(&bip143::SighashComponents::new(&htlc_tx).sighash_all(&htlc_tx.input[0], &htlc_redeemscript, htlc.amount_msat / 1000)[..]).unwrap();
                                secp_ctx.verify(&htlc_sighash, &remote_signature, &keys.b_htlc_key).unwrap();
@@ -2688,85 +3272,69 @@ mod tests {
                                         "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");
                }
 
-               chan.pending_htlcs.push({
-                       let mut out = HTLCOutput{
+               chan.pending_inbound_htlcs.push({
+                       let mut out = InboundHTLCOutput{
                                htlc_id: 0,
-                               outbound: false,
                                amount_msat: 1000000,
                                cltv_expiry: 500,
                                payment_hash: [0; 32],
-                               state: HTLCState::Committed,
-                               fail_reason: None,
-                               local_removed_fulfilled: false,
-                               pending_forward_state: None,
+                               state: InboundHTLCState::Committed,
                        };
                        let mut sha = Sha256::new();
                        sha.input(&hex::decode("0000000000000000000000000000000000000000000000000000000000000000").unwrap());
                        sha.result(&mut out.payment_hash);
                        out
                });
-               chan.pending_htlcs.push({
-                       let mut out = HTLCOutput{
+               chan.pending_inbound_htlcs.push({
+                       let mut out = InboundHTLCOutput{
                                htlc_id: 1,
-                               outbound: false,
                                amount_msat: 2000000,
                                cltv_expiry: 501,
                                payment_hash: [0; 32],
-                               state: HTLCState::Committed,
-                               fail_reason: None,
-                               local_removed_fulfilled: false,
-                               pending_forward_state: None,
+                               state: InboundHTLCState::Committed,
                        };
                        let mut sha = Sha256::new();
                        sha.input(&hex::decode("0101010101010101010101010101010101010101010101010101010101010101").unwrap());
                        sha.result(&mut out.payment_hash);
                        out
                });
-               chan.pending_htlcs.push({
-                       let mut out = HTLCOutput{
+               chan.pending_outbound_htlcs.push({
+                       let mut out = OutboundHTLCOutput{
                                htlc_id: 2,
-                               outbound: true,
                                amount_msat: 2000000,
                                cltv_expiry: 502,
                                payment_hash: [0; 32],
-                               state: HTLCState::Committed,
+                               state: OutboundHTLCState::Committed,
+                               source: HTLCSource::dummy(),
                                fail_reason: None,
-                               local_removed_fulfilled: false,
-                               pending_forward_state: None,
                        };
                        let mut sha = Sha256::new();
                        sha.input(&hex::decode("0202020202020202020202020202020202020202020202020202020202020202").unwrap());
                        sha.result(&mut out.payment_hash);
                        out
                });
-               chan.pending_htlcs.push({
-                       let mut out = HTLCOutput{
+               chan.pending_outbound_htlcs.push({
+                       let mut out = OutboundHTLCOutput{
                                htlc_id: 3,
-                               outbound: true,
                                amount_msat: 3000000,
                                cltv_expiry: 503,
                                payment_hash: [0; 32],
-                               state: HTLCState::Committed,
+                               state: OutboundHTLCState::Committed,
+                               source: HTLCSource::dummy(),
                                fail_reason: None,
-                               local_removed_fulfilled: false,
-                               pending_forward_state: None,
                        };
                        let mut sha = Sha256::new();
                        sha.input(&hex::decode("0303030303030303030303030303030303030303030303030303030303030303").unwrap());
                        sha.result(&mut out.payment_hash);
                        out
                });
-               chan.pending_htlcs.push({
-                       let mut out = HTLCOutput{
+               chan.pending_inbound_htlcs.push({
+                       let mut out = InboundHTLCOutput{
                                htlc_id: 4,
-                               outbound: false,
                                amount_msat: 4000000,
                                cltv_expiry: 504,
                                payment_hash: [0; 32],
-                               state: HTLCState::Committed,
-                               fail_reason: None,
-                               local_removed_fulfilled: false,
-                               pending_forward_state: None,
+                               state: InboundHTLCState::Committed,
                        };
                        let mut sha = Sha256::new();
                        sha.input(&hex::decode("0404040404040404040404040404040404040404040404040404040404040404").unwrap());