X-Git-Url: http://git.bitcoin.ninja/index.cgi?a=blobdiff_plain;f=src%2Fln%2Fchannel.rs;h=0477f68a3a75d858f9534f2d4c404113ed9adc96;hb=3b498378620d4294f188804c97497112e3693297;hp=47c05de2ab989ab69c00a8f219efb63adebb527a;hpb=dfc04ad0b4a70649c07625aa80c8bb8587718cc2;p=rust-lightning

diff --git a/src/ln/channel.rs b/src/ln/channel.rs
index 47c05de2..0477f68a 100644
--- a/src/ln/channel.rs
+++ b/src/ln/channel.rs
@@ -16,7 +16,7 @@ use crypto::hkdf::{hkdf_extract,hkdf_expand};
 use ln::msgs;
 use ln::msgs::{ErrorAction, HandleError, MsgEncodable};
 use ln::channelmonitor::ChannelMonitor;
-use ln::channelmanager::{PendingHTLCStatus, PendingForwardHTLCInfo, HTLCFailReason};
+use ln::channelmanager::{PendingHTLCStatus, 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};
@@ -87,24 +87,49 @@ impl ChannelKeys {
 }
 
 #[derive(PartialEq)]
-enum HTLCState {
+enum InboundHTLCState {
 	/// Added by remote, to be included in next local commitment tx.
-	/// Implies HTLCOutput::outbound: false
 	RemoteAnnounced,
 	/// 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,
 	/// 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,
+	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,
+}
+
+struct InboundHTLCOutput {
+	htlc_id: u64,
+	amount_msat: u64,
+	cltv_expiry: u32,
+	payment_hash: [u8; 32],
+	state: InboundHTLCState,
+	/// If we're in LocalRemoved, set to true if we fulfilled the HTLC, and can claim money
+	local_removed_fulfilled: bool,
+	/// state pre-Committed implies pending_forward_state, otherwise it must be None
+	pending_forward_state: Option<PendingHTLCStatus>,
+}
+
+#[derive(PartialEq)]
+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 +140,42 @@ 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,
 	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,
+	/// 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
 		}
 	}
@@ -264,7 +266,8 @@ 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>,
 	next_local_htlc_id: u64,
 	next_remote_htlc_id: u64,
@@ -338,18 +341,17 @@ const B_OUTPUT_PLUS_SPENDING_INPUT_WEIGHT: u64 = 104; // prevout: 40, nSequence:
 pub const MAX_FUNDING_SATOSHIS: u64 = (1 << 24);
 
 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 {
@@ -373,6 +375,8 @@ impl Channel {
 	}
 
 	fn derive_minimum_depth(_channel_value_satoshis_msat: u64, _value_to_self_msat: u64) -> u32 {
+		// Note that in order to comply with BOLT 7 announcement_signatures requirements this must
+		// be at least 6.
 		const CONF_TARGET: u32 = 12; //TODO: Should be much higher
 		CONF_TARGET
 	}
@@ -422,7 +426,8 @@ impl Channel {
 			cur_local_commitment_transaction_number: (1 << 48) - 1,
 			cur_remote_commitment_transaction_number: (1 << 48) - 1,
 			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(),
 			next_local_htlc_id: 0,
 			next_remote_htlc_id: 0,
@@ -523,10 +528,10 @@ impl Channel {
 
 		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_error_message!("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_error_message!("Peer tried to open announced channel, but we require private ones");
 		}
 
 		let background_feerate = fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Background);
@@ -579,7 +584,8 @@ impl Channel {
 			cur_local_commitment_transaction_number: (1 << 48) - 1,
 			cur_remote_commitment_transaction_number: (1 << 48) - 1,
 			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(),
 			next_local_htlc_id: 0,
 			next_remote_htlc_id: 0,
@@ -687,71 +693,83 @@ 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 $htlc.amount_msat / 1000 >= dust_limit_satoshis + (self.feerate_per_kw * HTLC_TIMEOUT_TX_WEIGHT / 1000) {
+						let htlc_in_tx = get_htlc_in_commitment!($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 $htlc.amount_msat / 1000 >= dust_limit_satoshis + (self.feerate_per_kw * HTLC_SUCCESS_TX_WEIGHT / 1000) {
+						let htlc_in_tx = get_htlc_in_commitment!($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 => {
+						if generated_by_local && htlc.local_removed_fulfilled {
+							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;
-					},
 					_ => {},
 				}
 			}
@@ -826,7 +844,8 @@ 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;
@@ -881,7 +900,7 @@ 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]
@@ -894,15 +913,16 @@ 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)
@@ -958,7 +978,7 @@ 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))
@@ -1015,13 +1035,16 @@ 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 pending_idx != std::usize::MAX {
-					panic!("Duplicate HTLC payment_hash, ChannelManager should have prevented this!");
+		for (idx, htlc) in self.pending_inbound_htlcs.iter().enumerate() {
+			if htlc.payment_hash == payment_hash_calc &&
+					htlc.state != InboundHTLCState::LocalRemoved {
+				if let Some(PendingHTLCStatus::Fail(_)) = htlc.pending_forward_state {
+				} else {
+					if pending_idx != std::usize::MAX {
+						panic!("Duplicate HTLC payment_hash, ChannelManager should have prevented this!");
+					}
+					pending_idx = idx;
 				}
-				pending_idx = idx;
 			}
 		}
 		if pending_idx == std::usize::MAX {
@@ -1057,11 +1080,11 @@ impl Channel {
 		}
 
 		let htlc_id = {
-			let htlc = &mut self.pending_htlcs[pending_idx];
-			if htlc.state == HTLCState::Committed {
-				htlc.state = HTLCState::LocalRemoved;
+			let htlc = &mut self.pending_inbound_htlcs[pending_idx];
+			if htlc.state == InboundHTLCState::Committed {
+				htlc.state = InboundHTLCState::LocalRemoved;
 				htlc.local_removed_fulfilled = true;
-			} else if htlc.state == HTLCState::RemoteAnnounced || htlc.state == HTLCState::AwaitingRemoteRevokeToAnnounce || htlc.state == HTLCState::AwaitingAnnouncedRemoteRevoke {
+			} else if htlc.state == InboundHTLCState::RemoteAnnounced || htlc.state == InboundHTLCState::AwaitingRemoteRevokeToAnnounce || htlc.state == InboundHTLCState::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
@@ -1070,7 +1093,7 @@ impl Channel {
 				// channel_monitor and pretend we didn't just see the preimage.
 				return Ok((None, Some(self.channel_monitor.clone())));
 			} else {
-				// LocalRemoved/LocalRemovedAwaitingCOmmitment handled in the search loop
+				// LocalRemoved handled in the search loop
 				panic!("Have an inbound HTLC when not awaiting remote revoke that had a garbage state");
 			}
 			htlc.htlc_id
@@ -1096,7 +1119,7 @@ impl Channel {
 
 	pub fn get_update_fail_htlc(&mut self, payment_hash_arg: &[u8; 32], 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);
 
@@ -1126,14 +1149,11 @@ impl Channel {
 
 		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 {
+		for htlc in self.pending_inbound_htlcs.iter_mut() {
+			if htlc.payment_hash == *payment_hash_arg {
+				if htlc.state == InboundHTLCState::Committed {
+					htlc.state = InboundHTLCState::LocalRemoved;
+				} else if htlc.state == InboundHTLCState::RemoteAnnounced {
 					if let Some(PendingHTLCStatus::Forward(_)) = htlc.pending_forward_state {
 						panic!("Somehow forwarded HTLC prior to remote revocation!");
 					} else {
@@ -1142,11 +1162,14 @@ impl Channel {
 						// we'll fail this one as soon as remote commits to it.
 						continue;
 					}
-				} else if htlc.state == HTLCState::LocalRemoved || htlc.state == HTLCState::LocalRemovedAwaitingCommitment {
+				} else if htlc.state == InboundHTLCState::LocalRemoved {
 					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");
 				}
+				if htlc_id != 0 {
+					panic!("Duplicate HTLC payment_hash, you probably re-used payment preimages, NEVER DO THIS!");
+				}
 				htlc_id = htlc.htlc_id;
 				htlc_amount_msat += htlc.amount_msat;
 			}
@@ -1263,7 +1286,7 @@ impl Channel {
 		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());
 
 		// 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)))
@@ -1271,10 +1294,13 @@ 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});
+			// 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 != (1 << 48) - 1 || self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
 			panic!("Should not have advanced channel commitment tx numbers prior to funding_created");
@@ -1326,7 +1352,7 @@ impl Channel {
 		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());
@@ -1360,31 +1386,34 @@ impl Channel {
 	/// 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) {
+		//TODO: Can probably split this into inbound/outbound
 		let mut inbound_htlc_count: u32 = 0;
 		let mut outbound_htlc_count: u32 = 0;
 		let mut htlc_outbound_value_msat = 0;
 		let mut htlc_inbound_value_msat = 0;
-		for ref htlc in self.pending_htlcs.iter() {
+		for ref htlc in self.pending_inbound_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; } },
+				InboundHTLCState::RemoteAnnounced => {},
+				InboundHTLCState::AwaitingRemoteRevokeToAnnounce => {},
+				InboundHTLCState::AwaitingAnnouncedRemoteRevoke => {},
+				InboundHTLCState::Committed => {},
+				InboundHTLCState::LocalRemoved => {},
 			}
-			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;
+			inbound_htlc_count += 1;
+			htlc_inbound_value_msat += htlc.amount_msat;
+		}
+		for ref htlc in self.pending_outbound_htlcs.iter() {
+			match htlc.state {
+				OutboundHTLCState::LocalAnnounced => { if for_remote_update_check { continue; } },
+				OutboundHTLCState::Committed => {},
+				OutboundHTLCState::RemoteRemoved => { if for_remote_update_check { continue; } },
+				OutboundHTLCState::AwaitingRemoteRevokeToRemove => { if for_remote_update_check { continue; } },
+				OutboundHTLCState::AwaitingRemovedRemoteRevoke => { if for_remote_update_check { continue; } },
 			}
+			outbound_htlc_count += 1;
+			htlc_outbound_value_msat += htlc.amount_msat;
 		}
+
 		(inbound_htlc_count, outbound_htlc_count, htlc_outbound_value_msat, htlc_inbound_value_msat)
 	}
 
@@ -1425,14 +1454,12 @@ 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,
+			state: InboundHTLCState::RemoteAnnounced,
 			local_removed_fulfilled: false,
 			pending_forward_state: Some(pending_forward_state),
 		});
@@ -1443,8 +1470,8 @@ impl Channel {
 	/// Removes an outbound HTLC which has been commitment_signed by the remote end
 	#[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 {
+		for htlc in self.pending_outbound_htlcs.iter_mut() {
+			if htlc.htlc_id == htlc_id {
 				match check_preimage {
 					None => {},
 					Some(payment_hash) =>
@@ -1452,15 +1479,15 @@ impl Channel {
 							return Err(HandleError{err: "Remote tried to fulfill HTLC with an incorrect preimage", action: None});
 						}
 				};
-				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(HandleError{err: "Remote tried to fulfill HTLC before it had been committed", action: None}),
+					OutboundHTLCState::Committed => {
+						htlc.state = OutboundHTLCState::RemoteRemoved;
+						htlc.fail_reason = fail_reason;
+					},
+					OutboundHTLCState::AwaitingRemoteRevokeToRemove | OutboundHTLCState::AwaitingRemovedRemoteRevoke | OutboundHTLCState::RemoteRemoved =>
+						return Err(HandleError{err: "Remote tried to fulfill HTLC that they'd already fulfilled", action: None}),
 				}
 				return Ok(htlc.payment_hash.clone());
 			}
@@ -1510,7 +1537,7 @@ impl Channel {
 		let mut local_commitment_tx = self.build_commitment_transaction(self.cur_local_commitment_transaction_number, &local_keys, true, false);
 		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});
@@ -1525,7 +1552,7 @@ impl Channel {
 			let mut htlc_tx = self.build_htlc_transaction(&local_commitment_txid, htlc, true, &local_keys);
 			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);
@@ -1543,25 +1570,18 @@ impl Channel {
 		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() {
+			if htlc.state == InboundHTLCState::RemoteAnnounced {
+				htlc.state = InboundHTLCState::AwaitingRemoteRevokeToAnnounce;
 				need_our_commitment = true;
-			} else if htlc.state == HTLCState::RemoteRemoved {
-				htlc.state = HTLCState::AwaitingRemoteRevokeToRemove;
+			}
+		}
+		for htlc in self.pending_outbound_htlcs.iter_mut() {
+			if htlc.state == OutboundHTLCState::RemoteRemoved {
+				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;
@@ -1640,6 +1660,7 @@ impl Channel {
 						update_add_htlcs,
 						update_fulfill_htlcs,
 						update_fail_htlcs,
+						update_fail_malformed_htlcs: Vec::new(),
 						commitment_signed,
 					}, monitor_update)))
 				},
@@ -1660,7 +1681,7 @@ impl Channel {
 			return Err(HandleError{err: "Got revoke/ACK message when channel was not in an operational state", action: None});
 		}
 		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});
 			}
 		}
@@ -1677,14 +1698,21 @@ impl Channel {
 
 		let mut to_forward_infos = Vec::new();
 		let mut revoked_htlcs = Vec::new();
-		let mut failed_htlcs = Vec::new();
+		let mut update_fail_htlcs = Vec::new();
+		let mut update_fail_malformed_htlcs = Vec::new();
 		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 htlc.state == InboundHTLCState::LocalRemoved {
+				if htlc.local_removed_fulfilled {
+					value_to_self_msat_diff += htlc.amount_msat as i64;
+				}
+				false
+			} else { true }
+		});
+		self.pending_outbound_htlcs.retain(|htlc| {
+			if htlc.state == OutboundHTLCState::AwaitingRemovedRemoteRevoke {
 				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));
 				} else {
@@ -1694,40 +1722,47 @@ 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;
+		for htlc in self.pending_inbound_htlcs.iter_mut() {
+			if htlc.state == InboundHTLCState::AwaitingRemoteRevokeToAnnounce {
+				htlc.state = InboundHTLCState::AwaitingAnnouncedRemoteRevoke;
 				require_commitment = true;
-			} else if htlc.state == HTLCState::AwaitingAnnouncedRemoteRevoke {
+			} else if htlc.state == InboundHTLCState::AwaitingAnnouncedRemoteRevoke {
 				match htlc.pending_forward_state.take().unwrap() {
 					PendingHTLCStatus::Fail(fail_msg) => {
-						htlc.state = HTLCState::LocalRemoved;
+						htlc.state = InboundHTLCState::LocalRemoved;
 						require_commitment = true;
-						failed_htlcs.push(fail_msg);
+						match fail_msg {
+							HTLCFailureMsg::Relay(msg) => update_fail_htlcs.push(msg),
+							HTLCFailureMsg::Malformed(msg) => update_fail_malformed_htlcs.push(msg),
+						}
 					},
 					PendingHTLCStatus::Forward(forward_info) => {
 						to_forward_infos.push(forward_info);
-						htlc.state = HTLCState::Committed;
+						htlc.state = InboundHTLCState::Committed;
 					}
 				}
-			} else if htlc.state == HTLCState::AwaitingRemoteRevokeToRemove {
-				htlc.state = HTLCState::AwaitingRemovedRemoteRevoke;
+			}
+		}
+		for htlc in self.pending_outbound_htlcs.iter_mut() {
+			if htlc.state == OutboundHTLCState::LocalAnnounced {
+				htlc.state = OutboundHTLCState::Committed;
+			} else if htlc.state == OutboundHTLCState::AwaitingRemoteRevokeToRemove {
+				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;
 
 		match self.free_holding_cell_htlcs()? {
 			Some(mut commitment_update) => {
-				commitment_update.0.update_fail_htlcs.reserve(failed_htlcs.len());
-				for fail_msg in failed_htlcs.drain(..) {
+				commitment_update.0.update_fail_htlcs.reserve(update_fail_htlcs.len());
+				for fail_msg in update_fail_htlcs.drain(..) {
 					commitment_update.0.update_fail_htlcs.push(fail_msg);
 				}
+				commitment_update.0.update_fail_malformed_htlcs.reserve(update_fail_malformed_htlcs.len());
+				for fail_msg in update_fail_malformed_htlcs.drain(..) {
+					commitment_update.0.update_fail_malformed_htlcs.push(fail_msg);
+				}
 				Ok((Some(commitment_update.0), to_forward_infos, revoked_htlcs, commitment_update.1))
 			},
 			None => {
@@ -1736,7 +1771,8 @@ impl Channel {
 					Ok((Some(msgs::CommitmentUpdate {
 						update_add_htlcs: Vec::new(),
 						update_fulfill_htlcs: Vec::new(),
-						update_fail_htlcs: failed_htlcs,
+						update_fail_htlcs,
+						update_fail_malformed_htlcs,
 						commitment_signed
 					}), to_forward_infos, revoked_htlcs, monitor_update))
 				} else {
@@ -1762,8 +1798,8 @@ impl Channel {
 			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 htlc.state == InboundHTLCState::RemoteAnnounced {
 				return Err(HandleError{err: "Got shutdown with remote pending HTLCs", action: None});
 			}
 		}
@@ -1789,7 +1825,7 @@ 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;
@@ -1822,8 +1858,8 @@ impl Channel {
 				_ => true
 			}
 		});
-		for htlc in self.pending_htlcs.iter() {
-			if htlc.state == HTLCState::LocalAnnounced {
+		for htlc in self.pending_outbound_htlcs.iter() {
+			if htlc.state == OutboundHTLCState::LocalAnnounced {
 				return Ok((None, None, dropped_outbound_htlcs));
 			}
 		}
@@ -1839,7 +1875,7 @@ 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()));
@@ -1857,7 +1893,7 @@ 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.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 {
@@ -1878,7 +1914,7 @@ 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());
 			},
 		};
 
@@ -1987,6 +2023,12 @@ impl Channel {
 		self.channel_value_satoshis
 	}
 
+	//TODO: Testing purpose only, should be changed in another way after #81
+	#[cfg(test)]
+	pub fn get_local_keys(&self) -> &ChannelKeys {
+		&self.local_keys
+	}
+
 	/// Allowed in any state (including after shutdown)
 	pub fn get_channel_update_count(&self) -> u32 {
 		self.channel_update_count
@@ -2098,7 +2140,16 @@ 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})});
@@ -2170,7 +2221,7 @@ impl Channel {
 		})
 	}
 
-	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?");
 		}
@@ -2183,7 +2234,7 @@ impl Channel {
 
 		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),
@@ -2199,7 +2250,7 @@ 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> {
@@ -2260,17 +2311,21 @@ impl Channel {
 
 	/// Gets an UnsignedChannelAnnouncement, as well as a signature covering it using our
 	/// bitcoin_key, if available, for this channel. The channel must be publicly announceable and
-	/// available for use (have exchanged FundingLocked messages in both directions. Should be used
+	/// available for use (have exchanged FundingLocked messages in both directions). Should be used
 	/// for both loose and in response to an AnnouncementSignatures message from the remote peer.
-	/// Note that you can get an announcement for a channel which is closing, though you should
-	/// likely not announce such a thing. In case its already been announced, a channel_update
-	/// message can mark the channel disabled.
+	/// Will only fail if we're not in a state where channel_announcement may be sent (including
+	/// 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> {
 		if !self.announce_publicly {
-			return Err(HandleError{err: "Channel is not available for public announcements", action: None});
+			return Err(HandleError{err: "Channel is not available for public announcements", action: Some(msgs::ErrorAction::IgnoreError)});
 		}
-		if self.channel_state & (ChannelState::ChannelFunded as u32) != (ChannelState::ChannelFunded as u32) {
-			return Err(HandleError{err: "Cannot get a ChannelAnnouncement until the channel funding has been locked", action: None});
+		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: Some(msgs::ErrorAction::IgnoreError)});
+		}
+		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: Some(msgs::ErrorAction::IgnoreError)});
 		}
 
 		let were_node_one = our_node_id.serialize()[..] < self.their_node_id.serialize()[..];
@@ -2284,6 +2339,7 @@ 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();
@@ -2300,6 +2356,7 @@ 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.
+	/// 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, 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});
@@ -2341,16 +2398,13 @@ impl Channel {
 			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,
 			fail_reason: None,
-			local_removed_fulfilled: false,
-			pending_forward_state: None
 		});
 
 		let res = msgs::UpdateAddHTLC {
@@ -2367,22 +2421,25 @@ 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");
 		}
 		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 {
+		for htlc in self.pending_outbound_htlcs.iter() {
+			if htlc.state == OutboundHTLCState::LocalAnnounced {
 				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()
 	}
@@ -2393,11 +2450,14 @@ impl Channel {
 		// 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() {
+			if htlc.state == InboundHTLCState::AwaitingRemoteRevokeToAnnounce {
+				htlc.state = InboundHTLCState::AwaitingAnnouncedRemoteRevoke;
+			}
+		}
+		for htlc in self.pending_outbound_htlcs.iter_mut() {
+			if htlc.state == OutboundHTLCState::AwaitingRemoteRevokeToRemove {
+				htlc.state = OutboundHTLCState::AwaitingRemovedRemoteRevoke;
 			}
 		}
 
@@ -2413,7 +2473,7 @@ impl Channel {
 			let htlc_tx = self.build_htlc_transaction(&remote_commitment_txid, htlc, false, &remote_keys);
 			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));
 		}
 
@@ -2445,8 +2505,8 @@ 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 {
+		for htlc in self.pending_outbound_htlcs.iter() {
+			if htlc.state == OutboundHTLCState::LocalAnnounced {
 				return Err(HandleError{err: "Cannot begin shutdown with pending HTLCs, call send_commitment first", action: None});
 			}
 		}
@@ -2505,8 +2565,8 @@ impl Channel {
 			}
 		}
 
-		for htlc in self.pending_htlcs.drain(..) {
-			if htlc.state == HTLCState::LocalAnnounced {
+		for htlc in self.pending_outbound_htlcs.drain(..) {
+			if htlc.state == OutboundHTLCState::LocalAnnounced {
 				dropped_outbound_htlcs.push(htlc.payment_hash);
 			}
 			//TODO: Do something with the remaining HTLCs
@@ -2530,7 +2590,7 @@ 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::channel::{Channel,ChannelKeys,InboundHTLCOutput,OutboundHTLCOutput,InboundHTLCState,OutboundHTLCState,HTLCOutputInCommitment,TxCreationKeys};
 	use ln::channel::MAX_FUNDING_SATOSHIS;
 	use ln::chan_utils;
 	use chain::chaininterface::{FeeEstimator,ConfirmationTarget};
@@ -2669,15 +2729,13 @@ mod tests {
 			                 "02000000000101bef67e4e2fb9ddeeb3461973cd4c62abb35050b1add772995b820b584a488489000000000038b02b8002c0c62d0000000000160014ccf1af2f2aabee14bb40fa3851ab2301de84311054a56a00000000002200204adb4e2f00643db396dd120d4e7dc17625f5f2c11a40d857accc862d6b7dd80e0400473044022051b75c73198c6deee1a875871c3961832909acd297c6b908d59e3319e5185a46022055c419379c5051a78d00dbbce11b5b664a0c22815fbcc6fcef6b1937c383693901483045022100f51d2e566a70ba740fc5d8c0f07b9b93d2ed741c3c0860c613173de7d39e7968022041376d520e9c0e1ad52248ddf4b22e12be8763007df977253ef45a4ca3bdb7c001475221023da092f6980e58d2c037173180e9a465476026ee50f96695963e8efe436f54eb21030e9f7b623d2ccc7c9bd44d66d5ce21ce504c0acf6385a132cec6d3c39fa711c152ae3e195220");
 		}
 
-		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,
+				state: InboundHTLCState::Committed,
 				local_removed_fulfilled: false,
 				pending_forward_state: None,
 			};
@@ -2686,15 +2744,13 @@ mod tests {
 			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,
+				state: InboundHTLCState::Committed,
 				local_removed_fulfilled: false,
 				pending_forward_state: None,
 			};
@@ -2703,49 +2759,41 @@ mod tests {
 			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,
 				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,
 				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,
+				state: InboundHTLCState::Committed,
 				local_removed_fulfilled: false,
 				pending_forward_state: None,
 			};