X-Git-Url: http://git.bitcoin.ninja/index.cgi?a=blobdiff_plain;f=src%2Fln%2Fchannel.rs;h=3a627f35baa9548881e8e52f8b1f888abff791a6;hb=refs%2Fheads%2F2018-09-163-cleanups;hp=3a442091cb0919436d605d661ad8aae68810de44;hpb=cf6532e3e6a52154e4d09f64c17a46b34e441da0;p=rust-lightning

diff --git a/src/ln/channel.rs b/src/ln/channel.rs
index 3a442091..3a627f35 100644
--- a/src/ln/channel.rs
+++ b/src/ln/channel.rs
@@ -14,20 +14,23 @@ use crypto::digest::Digest;
 use crypto::hkdf::{hkdf_extract,hkdf_expand};
 
 use ln::msgs;
-use ln::msgs::{HandleError, MsgEncodable};
+use ln::msgs::{ErrorAction, HandleError, MsgEncodable};
 use ln::channelmonitor::ChannelMonitor;
-use ln::channelmanager::{PendingForwardHTLCInfo, HTLCFailReason};
+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::sha2::Sha256;
+use util::logger::Logger;
+use util::errors::APIError;
 
 use std;
 use std::default::Default;
 use std::{cmp,mem};
 use std::time::Instant;
+use std::sync::{Arc};
 
 pub struct ChannelKeys {
 	pub funding_key: SecretKey,
@@ -84,7 +87,7 @@ impl ChannelKeys {
 }
 
 #[derive(PartialEq)]
-enum HTLCState {
+enum InboundHTLCState {
 	/// Added by remote, to be included in next local commitment tx.
 	RemoteAnnounced,
 	/// Included in a received commitment_signed message (implying we've revoke_and_ack'ed it), but
@@ -99,6 +102,34 @@ enum HTLCState {
 	/// We have included this HTLC in our latest commitment_signed and are now just waiting on a
 	/// revoke_and_ack.
 	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
@@ -126,42 +157,26 @@ enum HTLCState {
 	/// We have removed this HTLC in our latest commitment_signed and are now just waiting on a
 	/// revoke_and_ack to drop completely.
 	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).
-	LocalRemoved,
-	/// Removed by us, sent a new commitment_signed and got a revoke_and_ack. Just waiting on an
-	/// updated local commitment transaction.
-	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<PendingForwardHTLCInfo>,
 }
 
-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
 		}
 	}
@@ -174,15 +189,16 @@ 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,
 	},
 }
@@ -239,7 +255,7 @@ pub struct Channel {
 	channel_id: [u8; 32],
 	channel_state: u32,
 	channel_outbound: bool,
-	secp_ctx: Secp256k1,
+	secp_ctx: Secp256k1<secp256k1::All>,
 	announce_publicly: bool,
 	channel_value_satoshis: u64,
 
@@ -252,7 +268,8 @@ 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,
@@ -271,7 +288,7 @@ pub struct Channel {
 	/// to detect unconfirmation after a serialize-unserialize roudtrip where we may not see a full
 	/// series of block_connected/block_disconnected calls. Obviously this is not a guarantee as we
 	/// could miss the funding_tx_confirmed_in block as well, but it serves as a useful fallback.
-	funding_tx_confirmed_in: Sha256dHash,
+	funding_tx_confirmed_in: Option<Sha256dHash>,
 	short_channel_id: Option<u64>,
 	/// Used to deduplicate block_connected callbacks
 	last_block_connected: Sha256dHash,
@@ -290,12 +307,12 @@ pub struct Channel {
 	their_max_accepted_htlcs: u16,
 	//implied by OUR_MAX_HTLCS: our_max_accepted_htlcs: u16,
 
-	their_funding_pubkey: PublicKey,
-	their_revocation_basepoint: PublicKey,
-	their_payment_basepoint: PublicKey,
-	their_delayed_payment_basepoint: PublicKey,
-	their_htlc_basepoint: PublicKey,
-	their_cur_commitment_point: PublicKey,
+	their_funding_pubkey: Option<PublicKey>,
+	their_revocation_basepoint: Option<PublicKey>,
+	their_payment_basepoint: Option<PublicKey>,
+	their_delayed_payment_basepoint: Option<PublicKey>,
+	their_htlc_basepoint: Option<PublicKey>,
+	their_cur_commitment_point: Option<PublicKey>,
 
 	their_prev_commitment_point: Option<PublicKey>,
 	their_node_id: PublicKey,
@@ -303,10 +320,11 @@ pub struct Channel {
 	their_shutdown_scriptpubkey: Option<Script>,
 
 	channel_monitor: ChannelMonitor,
+
+	logger: Arc<Logger>,
 }
 
 const OUR_MAX_HTLCS: u16 = 5; //TODO
-const CONF_TARGET: u32 = 12; //TODO: Should be much higher
 /// Confirmation count threshold at which we close a channel. Ideally we'd keep the channel around
 /// on ice until the funding transaction gets more confirmations, but the LN protocol doesn't
 /// really allow for this, so instead we're stuck closing it out at that point.
@@ -325,18 +343,17 @@ 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 {
@@ -347,7 +364,8 @@ impl Channel {
 
 	/// Guaranteed to return a value no larger than channel_value_satoshis
 	fn get_our_channel_reserve_satoshis(channel_value_satoshis: u64) -> u64 {
-		cmp::min(channel_value_satoshis, 1000) //TODO
+		let (q, _) = channel_value_satoshis.overflowing_div(100);
+		cmp::min(channel_value_satoshis, cmp::max(q, 1000)) //TODO
 	}
 
 	fn derive_our_dust_limit_satoshis(at_open_background_feerate: u64) -> u64 {
@@ -358,26 +376,45 @@ impl Channel {
 		1000 // TODO
 	}
 
-	// Constructors:
+	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
+	}
 
-	/// panics if channel_value_satoshis is >= `MAX_FUNDING_SATOSHIS`
-	pub fn new_outbound(fee_estimator: &FeeEstimator, chan_keys: ChannelKeys, their_node_id: PublicKey, channel_value_satoshis: u64, announce_publicly: bool, user_id: u64) -> Channel {
+	fn derive_maximum_minimum_depth(_channel_value_satoshis_msat: u64, _value_to_self_msat: u64) -> u32 {
+		const CONF_TARGET: u32 = 12; //TODO: Should be much higher
+		CONF_TARGET * 2
+	}
+
+	// Constructors:
+	pub fn new_outbound(fee_estimator: &FeeEstimator, chan_keys: ChannelKeys, their_node_id: PublicKey, channel_value_satoshis: u64, push_msat: u64, announce_publicly: bool, user_id: u64, logger: Arc<Logger>) -> Result<Channel, APIError> {
 		if channel_value_satoshis >= MAX_FUNDING_SATOSHIS {
-			panic!("funding value > 2^24");
+			return Err(APIError::APIMisuseError{err: "funding value > 2^24"});
 		}
 
-		let feerate = fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Normal);
+		if push_msat > channel_value_satoshis * 1000 {
+			return Err(APIError::APIMisuseError{err: "push value > channel value"});
+		}
+
+
 		let background_feerate = fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Background);
+		if Channel::get_our_channel_reserve_satoshis(channel_value_satoshis) < Channel::derive_our_dust_limit_satoshis(background_feerate) {
+			return Err(APIError::FeeRateTooHigh{err: format!("Not enough reserve above dust limit can be found at current fee rate({})", background_feerate), feerate: background_feerate});
+		}
+
+		let feerate = fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Normal);
 
 		let secp_ctx = Secp256k1::new();
-		let our_channel_monitor_claim_key_hash = Hash160::from_data(&PublicKey::from_secret_key(&secp_ctx, &chan_keys.channel_monitor_claim_key).unwrap().serialize());
+		let our_channel_monitor_claim_key_hash = Hash160::from_data(&PublicKey::from_secret_key(&secp_ctx, &chan_keys.channel_monitor_claim_key).serialize());
 		let our_channel_monitor_claim_script = Builder::new().push_opcode(opcodes::All::OP_PUSHBYTES_0).push_slice(&our_channel_monitor_claim_key_hash[..]).into_script();
 		let channel_monitor = ChannelMonitor::new(&chan_keys.revocation_base_key,
-		                                          &PublicKey::from_secret_key(&secp_ctx, &chan_keys.delayed_payment_base_key).unwrap(),
+		                                          &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 {
+		Ok(Channel {
 			user_id: user_id,
 
 			channel_id: rng::rand_u832(),
@@ -390,8 +427,9 @@ impl Channel {
 			local_keys: chan_keys,
 			cur_local_commitment_transaction_number: (1 << 48) - 1,
 			cur_remote_commitment_transaction_number: (1 << 48) - 1,
-			value_to_self_msat: channel_value_satoshis * 1000, //TODO: give them something on open? Parameterize it?
-			pending_htlcs: Vec::new(),
+			value_to_self_msat: channel_value_satoshis * 1000 - push_msat,
+			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,
@@ -401,7 +439,7 @@ impl Channel {
 
 			last_sent_closing_fee: None,
 
-			funding_tx_confirmed_in: Default::default(),
+			funding_tx_confirmed_in: None,
 			short_channel_id: None,
 			last_block_connected: Default::default(),
 			funding_tx_confirmations: 0,
@@ -416,12 +454,12 @@ impl Channel {
 			their_to_self_delay: 0,
 			their_max_accepted_htlcs: 0,
 
-			their_funding_pubkey: PublicKey::new(),
-			their_revocation_basepoint: PublicKey::new(),
-			their_payment_basepoint: PublicKey::new(),
-			their_delayed_payment_basepoint: PublicKey::new(),
-			their_htlc_basepoint: PublicKey::new(),
-			their_cur_commitment_point: PublicKey::new(),
+			their_funding_pubkey: None,
+			their_revocation_basepoint: None,
+			their_payment_basepoint: None,
+			their_delayed_payment_basepoint: None,
+			their_htlc_basepoint: None,
+			their_cur_commitment_point: None,
 
 			their_prev_commitment_point: None,
 			their_node_id: their_node_id,
@@ -429,7 +467,9 @@ impl Channel {
 			their_shutdown_scriptpubkey: None,
 
 			channel_monitor: channel_monitor,
-		}
+
+			logger,
+		})
 	}
 
 	fn check_remote_fee(fee_estimator: &FeeEstimator, feerate_per_kw: u32) -> Result<(), HandleError> {
@@ -446,54 +486,91 @@ impl Channel {
 	/// 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) -> Result<Channel, HandleError> {
+	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() }})});
+			}
+		}
+
 		// Check sanity of message fields:
 		if msg.funding_satoshis >= MAX_FUNDING_SATOSHIS {
-			return Err(HandleError{err: "funding value > 2^24", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("funding value > 2^24");
 		}
 		if msg.channel_reserve_satoshis > msg.funding_satoshis {
-			return Err(HandleError{err: "Bogus channel_reserve_satoshis", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("Bogus channel_reserve_satoshis");
 		}
 		if msg.push_msat > (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000 {
-			return Err(HandleError{err: "push_msat more than highest possible value", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("push_msat larger than funding value");
 		}
 		if msg.dust_limit_satoshis > msg.funding_satoshis {
-			return Err(HandleError{err: "Peer never wants payout outputs?", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("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");
 		}
 		if msg.htlc_minimum_msat >= (msg.funding_satoshis - msg.channel_reserve_satoshis) * 1000 {
-			return Err(HandleError{err: "Minimum htlc value is full channel value", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("Miminum htlc value is full channel value");
 		}
-		Channel::check_remote_fee(fee_estimator, msg.feerate_per_kw)?;
+		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() }})}
+		)?;
+
 		if msg.to_self_delay > MAX_LOCAL_BREAKDOWN_TIMEOUT {
-			return Err(HandleError{err: "They wanted our payments to be delayed by a needlessly long period", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("They wanted our payments to be delayed by a needlessly long period");
 		}
 		if msg.max_accepted_htlcs < 1 {
-			return Err(HandleError{err: "0 max_accpted_htlcs makes for a useless channel", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+			return_error_message!("0 max_accpted_htlcs makes for a useless channel");
 		}
-		if (msg.channel_flags & 254) != 0 {
-			return Err(HandleError{err: "unknown channel_flags", action: Some(msgs::ErrorAction::DisconnectPeer{ msg: None })});
+		if msg.max_accepted_htlcs > 483 {
+			return_error_message!("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_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);
 
+		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");
+		}
+		if msg.channel_reserve_satoshis < our_dust_limit_satoshis {
+			return_error_message!("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");
+		}
+
+		// 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");
+		}
+
+		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");
+		}
+
 		let secp_ctx = Secp256k1::new();
-		let our_channel_monitor_claim_key_hash = Hash160::from_data(&PublicKey::from_secret_key(&secp_ctx, &chan_keys.channel_monitor_claim_key).unwrap().serialize());
+		let our_channel_monitor_claim_key_hash = Hash160::from_data(&PublicKey::from_secret_key(&secp_ctx, &chan_keys.channel_monitor_claim_key).serialize());
 		let our_channel_monitor_claim_script = Builder::new().push_opcode(opcodes::All::OP_PUSHBYTES_0).push_slice(&our_channel_monitor_claim_key_hash[..]).into_script();
 		let mut channel_monitor = ChannelMonitor::new(&chan_keys.revocation_base_key,
-		                                              &PublicKey::from_secret_key(&secp_ctx, &chan_keys.delayed_payment_base_key).unwrap(),
+		                                              &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 {
@@ -509,7 +586,8 @@ 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,
@@ -519,7 +597,7 @@ impl Channel {
 
 			last_sent_closing_fee: None,
 
-			funding_tx_confirmed_in: Default::default(),
+			funding_tx_confirmed_in: None,
 			short_channel_id: None,
 			last_block_connected: Default::default(),
 			funding_tx_confirmations: 0,
@@ -527,7 +605,7 @@ impl Channel {
 			feerate_per_kw: msg.feerate_per_kw as u64,
 			channel_value_satoshis: msg.funding_satoshis,
 			their_dust_limit_satoshis: msg.dust_limit_satoshis,
-			our_dust_limit_satoshis: Channel::derive_our_dust_limit_satoshis(background_feerate),
+			our_dust_limit_satoshis: our_dust_limit_satoshis,
 			their_max_htlc_value_in_flight_msat: cmp::min(msg.max_htlc_value_in_flight_msat, msg.funding_satoshis * 1000),
 			their_channel_reserve_satoshis: msg.channel_reserve_satoshis,
 			their_htlc_minimum_msat: msg.htlc_minimum_msat,
@@ -535,12 +613,12 @@ impl Channel {
 			their_to_self_delay: msg.to_self_delay,
 			their_max_accepted_htlcs: msg.max_accepted_htlcs,
 
-			their_funding_pubkey: msg.funding_pubkey,
-			their_revocation_basepoint: msg.revocation_basepoint,
-			their_payment_basepoint: msg.payment_basepoint,
-			their_delayed_payment_basepoint: msg.delayed_payment_basepoint,
-			their_htlc_basepoint: msg.htlc_basepoint,
-			their_cur_commitment_point: msg.first_per_commitment_point,
+			their_funding_pubkey: Some(msg.funding_pubkey),
+			their_revocation_basepoint: Some(msg.revocation_basepoint),
+			their_payment_basepoint: Some(msg.payment_basepoint),
+			their_delayed_payment_basepoint: Some(msg.delayed_payment_basepoint),
+			their_htlc_basepoint: Some(msg.htlc_basepoint),
+			their_cur_commitment_point: Some(msg.first_per_commitment_point),
 
 			their_prev_commitment_point: None,
 			their_node_id: their_node_id,
@@ -548,6 +626,8 @@ impl Channel {
 			their_shutdown_scriptpubkey: None,
 
 			channel_monitor: channel_monitor,
+
+			logger,
 		};
 
 		let obscure_factor = chan.get_commitment_transaction_number_obscure_factor();
@@ -567,13 +647,13 @@ impl Channel {
 
 	fn get_commitment_transaction_number_obscure_factor(&self) -> u64 {
 		let mut sha = Sha256::new();
-		let our_payment_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key).unwrap();
+		let our_payment_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key);
 
 		if self.channel_outbound {
 			sha.input(&our_payment_basepoint.serialize());
-			sha.input(&self.their_payment_basepoint.serialize());
+			sha.input(&self.their_payment_basepoint.unwrap().serialize());
 		} else {
-			sha.input(&self.their_payment_basepoint.serialize());
+			sha.input(&self.their_payment_basepoint.unwrap().serialize());
 			sha.input(&our_payment_basepoint.serialize());
 		}
 		let mut res = [0; 32];
@@ -607,8 +687,7 @@ impl Channel {
 		let txins = {
 			let mut ins: Vec<TxIn> = Vec::new();
 			ins.push(TxIn {
-				prev_hash: self.channel_monitor.get_funding_txo().unwrap().txid,
-				prev_index: self.channel_monitor.get_funding_txo().unwrap().index as u32,
+				previous_output: self.channel_monitor.get_funding_txo().unwrap().into_bitcoin_outpoint(),
 				script_sig: Script::new(),
 				sequence: ((0x80 as u32) << 8*3) | ((obscured_commitment_transaction_number >> 3*8) as u32),
 				witness: Vec::new(),
@@ -616,70 +695,83 @@ 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 {
-					HTLCState::AwaitingRemoteRevokeToRemove|HTLCState::AwaitingRemovedRemoteRevoke => {
-						if generated_by_local && htlc.fail_reason.is_none() {
-							value_to_self_msat_offset -= htlc.amount_msat as i64;
+					InboundHTLCState::LocalRemoved => {
+						if generated_by_local && htlc.local_removed_fulfilled {
+							value_to_self_msat_offset += htlc.amount_msat as i64;
 						}
 					},
-					HTLCState::RemoteRemoved => {
-						if !generated_by_local && htlc.fail_reason.is_none() {
+					_ => {},
+				}
+			}
+		}
+
+		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 {
+					OutboundHTLCState::AwaitingRemoteRevokeToRemove|OutboundHTLCState::AwaitingRemovedRemoteRevoke => {
+						if 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;
+					OutboundHTLCState::RemoteRemoved => {
+						if !generated_by_local && htlc.fail_reason.is_none() {
+							value_to_self_msat_offset -= htlc.amount_msat as i64;
 						}
 					},
-					HTLCState::LocalRemovedAwaitingCommitment => {
-						value_to_self_msat_offset += htlc.amount_msat as i64;
-					},
 					_ => {},
 				}
 			}
@@ -732,7 +824,7 @@ impl Channel {
 
 	#[inline]
 	fn get_closing_scriptpubkey(&self) -> Script {
-		let our_channel_close_key_hash = Hash160::from_data(&PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.channel_close_key).unwrap().serialize());
+		let our_channel_close_key_hash = Hash160::from_data(&PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.channel_close_key).serialize());
 		Builder::new().push_opcode(opcodes::All::OP_PUSHBYTES_0).push_slice(&our_channel_close_key_hash[..]).into_script()
 	}
 
@@ -746,8 +838,7 @@ impl Channel {
 		let txins = {
 			let mut ins: Vec<TxIn> = Vec::new();
 			ins.push(TxIn {
-				prev_hash: self.channel_monitor.get_funding_txo().unwrap().txid,
-				prev_index: self.channel_monitor.get_funding_txo().unwrap().index as u32,
+				previous_output: self.channel_monitor.get_funding_txo().unwrap().into_bitcoin_outpoint(),
 				script_sig: Script::new(),
 				sequence: 0xffffffff,
 				witness: Vec::new(),
@@ -755,7 +846,8 @@ 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;
@@ -806,11 +898,11 @@ impl Channel {
 	/// The result is a transaction which we can revoke ownership of (ie a "local" transaction)
 	/// TODO Some magic rust shit to compile-time check this?
 	fn build_local_transaction_keys(&self, commitment_number: u64) -> Result<TxCreationKeys, HandleError> {
-		let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(commitment_number)).unwrap();
-		let delayed_payment_base = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key).unwrap();
-		let htlc_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key).unwrap();
+		let per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(commitment_number));
+		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, &self.their_payment_basepoint, &self.their_htlc_basepoint)))
+		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]
@@ -819,19 +911,20 @@ impl Channel {
 	fn build_remote_transaction_keys(&self) -> Result<TxCreationKeys, HandleError> {
 		//TODO: Ensure that the payment_key derived here ends up in the library users' wallet as we
 		//may see payments to it!
-		let payment_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key).unwrap();
-		let revocation_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key).unwrap();
-		let htlc_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key).unwrap();
+		let payment_basepoint = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key);
+		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, &self.their_delayed_payment_basepoint, &self.their_htlc_basepoint, &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).unwrap().serialize();
-		let their_funding_key = self.their_funding_pubkey.serialize();
+		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.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)
@@ -852,12 +945,12 @@ impl Channel {
 		let funding_redeemscript = self.get_funding_redeemscript();
 
 		let sighash = Message::from_slice(&bip143::SighashComponents::new(&tx).sighash_all(&tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
-		let our_sig = self.secp_ctx.sign(&sighash, &self.local_keys.funding_key).unwrap();
+		let our_sig = self.secp_ctx.sign(&sighash, &self.local_keys.funding_key);
 
 		tx.input[0].witness.push(Vec::new()); // First is the multisig dummy
 
-		let our_funding_key = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key).unwrap().serialize();
-		let their_funding_key = self.their_funding_pubkey.serialize();
+		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();
 		if our_funding_key[..] < their_funding_key[..] {
 			tx.input[0].witness.push(our_sig.serialize_der(&self.secp_ctx).to_vec());
 			tx.input[0].witness.push(their_sig.serialize_der(&self.secp_ctx).to_vec());
@@ -868,7 +961,7 @@ impl Channel {
 		tx.input[0].witness[1].push(SigHashType::All as u8);
 		tx.input[0].witness[2].push(SigHashType::All as u8);
 
-		tx.input[0].witness.push(funding_redeemscript.into_vec());
+		tx.input[0].witness.push(funding_redeemscript.into_bytes());
 
 		our_sig
 	}
@@ -887,10 +980,10 @@ 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).unwrap() == keys.a_htlc_key;
-		Ok((htlc_redeemscript, self.secp_ctx.sign(&sighash, &our_htlc_key).unwrap(), is_local_tx))
+		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))
 	}
 
 	/// Signs a transaction created by build_htlc_transaction. If the transaction is an
@@ -923,12 +1016,12 @@ impl Channel {
 			tx.input[0].witness.push(preimage.unwrap().to_vec());
 		}
 
-		tx.input[0].witness.push(htlc_redeemscript.into_vec());
+		tx.input[0].witness.push(htlc_redeemscript.into_bytes());
 
 		Ok(our_sig)
 	}
 
-	fn get_update_fulfill_htlc(&mut self, payment_preimage_arg: [u8; 32]) -> Result<(Option<msgs::UpdateFulfillHTLC>, Option<ChannelMonitor>), HandleError> {
+	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,
@@ -944,16 +1037,17 @@ 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 {
-				if pending_idx != std::usize::MAX {
-					panic!("Duplicate HTLC payment_hash, you probably re-used payment preimages, NEVER DO THIS!");
+		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 htlc.state != InboundHTLCState::LocalRemoved {
+					pending_idx = idx;
+					break;
 				}
-				pending_idx = idx;
 			}
 		}
 		if pending_idx == std::usize::MAX {
-			return Err(HandleError{err: "Unable to find a pending HTLC which matched the given payment preimage", action: None});
+			return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: None});
 		}
 
 		// Now update local state:
@@ -965,49 +1059,53 @@ impl Channel {
 		if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == (ChannelState::AwaitingRemoteRevoke as u32) {
 			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 {
 							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 {
+							return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: None});
 						}
 					},
 					_ => {}
 				}
 			}
 			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;
+		{
+			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 {
-				panic!("Somehow forwarded HTLC prior to remote revocation!");
-			} 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 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
+				// 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())));
 			} else {
+				// LocalRemoved handled in the search loop
 				panic!("Have an inbound HTLC when not awaiting remote revoke that had a garbage state");
 			}
-			htlc.htlc_id
-		};
+		}
 
 		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)))
@@ -1017,9 +1115,9 @@ impl Channel {
 		}
 	}
 
-	pub fn get_update_fail_htlc(&mut self, payment_hash_arg: &[u8; 32], err_packet: msgs::OnionErrorPacket) -> Result<Option<msgs::UpdateFailHTLC>, HandleError> {
+	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);
 
@@ -1027,13 +1125,13 @@ impl Channel {
 		if (self.channel_state & (ChannelState::AwaitingRemoteRevoke as u32)) == (ChannelState::AwaitingRemoteRevoke as u32) {
 			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 {
+							return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: None});
 						}
 					},
-					&HTLCUpdateAwaitingACK::FailHTLC { ref payment_hash, .. } => {
-						if *payment_hash_arg == *payment_hash {
+					&HTLCUpdateAwaitingACK::FailHTLC { htlc_id, .. } => {
+						if htlc_id_arg == htlc_id {
 							return Ok(None);
 						}
 					},
@@ -1041,45 +1139,40 @@ 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!");
-				}
-				htlc_id = htlc.htlc_id;
-				htlc_amount_msat += htlc.amount_msat;
-				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.htlc_id == htlc_id_arg {
+				if htlc.state == InboundHTLCState::Committed {
+					htlc.state = InboundHTLCState::LocalRemoved;
+				} else if htlc.state == InboundHTLCState::RemoteAnnounced {
 					panic!("Somehow forwarded HTLC prior to remote revocation!");
-				} 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 if htlc.state == InboundHTLCState::LocalRemoved {
+					return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: None});
 				} else {
 					panic!("Have an inbound HTLC when not awaiting remote revoke that had a garbage state");
 				}
+				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});
+			return Err(HandleError{err: "Unable to find a pending HTLC which matched the given HTLC ID", action: None});
 		}
 
 		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)))
@@ -1091,31 +1184,59 @@ 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() }})});
+			}
+		}
 		// Check sanity of message fields:
 		if !self.channel_outbound {
-			return Err(HandleError{err: "Got an accept_channel message from an inbound peer", action: None});
+			return_error_message!("Got an accept_channel message from an inbound peer");
 		}
 		if self.channel_state != ChannelState::OurInitSent as u32 {
-			return Err(HandleError{err: "Got an accept_channel message at a strange time", action: None});
+			return_error_message!("Got an accept_channel message at a strange time");
 		}
 		if msg.dust_limit_satoshis > 21000000 * 100000000 {
-			return Err(HandleError{err: "Peer never wants payout outputs?", action: None});
+			return_error_message!("Peer never wants payout outputs?");
 		}
 		if msg.channel_reserve_satoshis > self.channel_value_satoshis {
-			return Err(HandleError{err: "Bogus channel_reserve_satoshis", action: None});
+			return_error_message!("Bogus channel_reserve_satoshis");
+		}
+		if msg.dust_limit_satoshis > msg.channel_reserve_satoshis {
+			return_error_message!("Bogus channel_reserve and dust_limit");
+		}
+		if msg.channel_reserve_satoshis < self.our_dust_limit_satoshis {
+			return_error_message!("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");
 		}
 		if msg.htlc_minimum_msat >= (self.channel_value_satoshis - msg.channel_reserve_satoshis) * 1000 {
-			return Err(HandleError{err: "Minimum htlc value is full channel value", action: None});
+			return_error_message!("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");
 		}
-		//TODO do something with minimum_depth
 		if msg.to_self_delay > MAX_LOCAL_BREAKDOWN_TIMEOUT {
-			return Err(HandleError{err: "They wanted our payments to be delayed by a needlessly long period", action: None});
+			return_error_message!("They wanted our payments to be delayed by a needlessly long period");
 		}
 		if msg.max_accepted_htlcs < 1 {
-			return Err(HandleError{err: "0 max_accpted_htlcs makes for a useless channel", action: None});
+			return_error_message!("0 max_accpted_htlcs makes for a useless channel");
+		}
+		if msg.max_accepted_htlcs > 483 {
+			return_error_message!("max_accpted_htlcs > 483");
 		}
 
-		self.channel_monitor.set_their_htlc_base_key(&msg.htlc_basepoint);
+		// TODO: Optional additional constraints mentioned in the spec
+		// MAY fail the channel if
+		// funding_satoshi is too small
+		// htlc_minimum_msat too large
+		// max_htlc_value_in_flight_msat too small
+		// channel_reserve_satoshis too large
+		// max_accepted_htlcs too small
+		// dust_limit_satoshis too small
+
+		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);
@@ -1123,12 +1244,12 @@ impl Channel {
 		self.their_htlc_minimum_msat = msg.htlc_minimum_msat;
 		self.their_to_self_delay = msg.to_self_delay;
 		self.their_max_accepted_htlcs = msg.max_accepted_htlcs;
-		self.their_funding_pubkey = msg.funding_pubkey;
-		self.their_revocation_basepoint = msg.revocation_basepoint;
-		self.their_payment_basepoint = msg.payment_basepoint;
-		self.their_delayed_payment_basepoint = msg.delayed_payment_basepoint;
-		self.their_htlc_basepoint = msg.htlc_basepoint;
-		self.their_cur_commitment_point = msg.first_per_commitment_point;
+		self.their_funding_pubkey = Some(msg.funding_pubkey);
+		self.their_revocation_basepoint = Some(msg.revocation_basepoint);
+		self.their_payment_basepoint = Some(msg.payment_basepoint);
+		self.their_delayed_payment_basepoint = Some(msg.delayed_payment_basepoint);
+		self.their_htlc_basepoint = Some(msg.htlc_basepoint);
+		self.their_cur_commitment_point = Some(msg.first_per_commitment_point);
 
 		let obscure_factor = self.get_commitment_transaction_number_obscure_factor();
 		self.channel_monitor.set_commitment_obscure_factor(obscure_factor);
@@ -1142,27 +1263,30 @@ 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_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), "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).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).unwrap()))
+		Ok((remote_initial_commitment_tx, self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key)))
 	}
 
 	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");
@@ -1214,7 +1338,7 @@ 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), "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());
@@ -1236,8 +1360,8 @@ impl Channel {
 			return Err(HandleError{err: "Peer sent a funding_locked at a strange time", action: None});
 		}
 
-		self.their_prev_commitment_point = Some(self.their_cur_commitment_point);
-		self.their_cur_commitment_point = msg.next_per_commitment_point;
+		self.their_prev_commitment_point = self.their_cur_commitment_point;
+		self.their_cur_commitment_point = Some(msg.next_per_commitment_point);
 		Ok(())
 	}
 
@@ -1248,35 +1372,38 @@ 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)
 	}
 
-	pub fn update_add_htlc(&mut self, msg: &msgs::UpdateAddHTLC, pending_forward_state: PendingForwardHTLCInfo) -> Result<(), HandleError> {
+	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});
 		}
@@ -1313,14 +1440,12 @@ 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),
 		});
@@ -1330,9 +1455,9 @@ 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 {
+	fn mark_outbound_htlc_removed(&mut self, htlc_id: u64, check_preimage: Option<[u8; 32]>, fail_reason: Option<HTLCFailReason>) -> Result<&HTLCSource, HandleError> {
+		for htlc in self.pending_outbound_htlcs.iter_mut() {
+			if htlc.htlc_id == htlc_id {
 				match check_preimage {
 					None => {},
 					Some(payment_hash) =>
@@ -1340,23 +1465,23 @@ 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());
+				return Ok(&htlc.source);
 			}
 		}
 		Err(HandleError{err: "Remote tried to fulfill/fail an HTLC we couldn't find", action: None})
 	}
 
-	pub fn update_fulfill_htlc(&mut self, msg: &msgs::UpdateFulfillHTLC) -> Result<(), HandleError> {
+	pub fn update_fulfill_htlc(&mut self, msg: &msgs::UpdateFulfillHTLC) -> Result<&HTLCSource, HandleError> {
 		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});
 		}
@@ -1366,11 +1491,10 @@ 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, HandleError> {
 		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});
 		}
@@ -1378,13 +1502,12 @@ impl Channel {
 		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, HandleError> {
 		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});
 		}
 
-		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> {
@@ -1398,7 +1521,7 @@ 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), "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});
@@ -1413,7 +1536,7 @@ 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);
@@ -1424,32 +1547,25 @@ impl Channel {
 			htlcs_and_sigs.push(((*htlc).clone(), msg.htlc_signatures[idx], htlc_sig));
 		}
 
-		let next_per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(self.cur_local_commitment_transaction_number - 1)).unwrap();
+		let next_per_commitment_point = PublicKey::from_secret_key(&self.secp_ctx, &self.build_local_commitment_secret(self.cur_local_commitment_transaction_number - 1));
 		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...
 		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;
@@ -1489,24 +1605,24 @@ 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);
 								}
 							}
 						},
-						&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);
@@ -1528,6 +1644,7 @@ impl Channel {
 						update_add_htlcs,
 						update_fulfill_htlcs,
 						update_fail_htlcs,
+						update_fail_malformed_htlcs: Vec::new(),
 						commitment_signed,
 					}, monitor_update)))
 				},
@@ -1543,12 +1660,12 @@ 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 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")).unwrap() != 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});
 			}
 		}
@@ -1559,21 +1676,29 @@ impl Channel {
 		// OK, we step the channel here and *then* if the new generation fails we can fail the
 		// channel based on that, but stepping stuff here should be safe either way.
 		self.channel_state &= !(ChannelState::AwaitingRemoteRevoke as u32);
-		self.their_prev_commitment_point = Some(self.their_cur_commitment_point);
-		self.their_cur_commitment_point = msg.next_per_commitment_point;
+		self.their_prev_commitment_point = self.their_cur_commitment_point;
+		self.their_cur_commitment_point = Some(msg.next_per_commitment_point);
 		self.cur_remote_commitment_transaction_number -= 1;
 
 		let mut to_forward_infos = Vec::new();
 		let mut revoked_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));
+					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;
@@ -1581,27 +1706,47 @@ 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 {
-				htlc.state = HTLCState::Committed;
-				to_forward_infos.push(htlc.pending_forward_state.take().unwrap());
-			} else if htlc.state == HTLCState::AwaitingRemoteRevokeToRemove {
-				htlc.state = HTLCState::AwaitingRemovedRemoteRevoke;
+			} else if htlc.state == InboundHTLCState::AwaitingAnnouncedRemoteRevoke {
+				match htlc.pending_forward_state.take().unwrap() {
+					PendingHTLCStatus::Fail(fail_msg) => {
+						htlc.state = InboundHTLCState::LocalRemoved;
+						require_commitment = true;
+						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.htlc_id));
+						htlc.state = InboundHTLCState::Committed;
+					}
+				}
+			}
+		}
+		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(commitment_update) => {
+			Some(mut commitment_update) => {
+				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 => {
@@ -1610,7 +1755,8 @@ impl Channel {
 					Ok((Some(msgs::CommitmentUpdate {
 						update_add_htlcs: Vec::new(),
 						update_fulfill_htlcs: Vec::new(),
-						update_fail_htlcs: Vec::new(),
+						update_fail_htlcs,
+						update_fail_malformed_htlcs,
 						commitment_signed
 					}), to_forward_infos, revoked_htlcs, monitor_update))
 				} else {
@@ -1630,14 +1776,14 @@ impl Channel {
 		Ok(())
 	}
 
-	pub fn shutdown(&mut self, fee_estimator: &FeeEstimator, msg: &msgs::Shutdown) -> Result<(Option<msgs::Shutdown>, Option<msgs::ClosingSigned>, Vec<[u8; 32]>), HandleError> {
+	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::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 htlc.state == InboundHTLCState::RemoteAnnounced {
 				return Err(HandleError{err: "Got shutdown with remote pending HTLCs", action: None});
 			}
 		}
@@ -1663,7 +1809,7 @@ 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;
@@ -1675,7 +1821,7 @@ impl Channel {
 			let funding_redeemscript = self.get_funding_redeemscript();
 			let sighash = Message::from_slice(&bip143::SighashComponents::new(&closing_tx).sighash_all(&closing_tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
 
-			(Some(proposed_feerate), Some(total_fee_satoshis), Some(self.secp_ctx.sign(&sighash, &self.local_keys.funding_key).unwrap()))
+			(Some(proposed_feerate), Some(total_fee_satoshis), Some(self.secp_ctx.sign(&sighash, &self.local_keys.funding_key)))
 		} else { (None, None, None) };
 
 		// From here on out, we may not fail!
@@ -1689,15 +1835,15 @@ 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 htlc.state == OutboundHTLCState::LocalAnnounced {
 				return Ok((None, None, dropped_outbound_htlcs));
 			}
 		}
@@ -1713,7 +1859,7 @@ 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()));
@@ -1731,7 +1877,7 @@ 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 {
@@ -1745,14 +1891,14 @@ impl Channel {
 		}
 		let mut sighash = Message::from_slice(&bip143::SighashComponents::new(&closing_tx).sighash_all(&closing_tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
 
-		match self.secp_ctx.verify(&sighash, &msg.signature, &self.their_funding_pubkey) {
+		match self.secp_ctx.verify(&sighash, &msg.signature, &self.their_funding_pubkey.unwrap()) {
 			Ok(_) => {},
-			Err(_) => {
+			Err(_e) => {
 				// The remote end may have decided to revoke their output due to inconsistent dust
 				// 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), "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());
 			},
 		};
 
@@ -1770,7 +1916,7 @@ impl Channel {
 				let closing_tx_max_weight = Self::get_closing_transaction_weight(&self.get_closing_scriptpubkey(), self.their_shutdown_scriptpubkey.as_ref().unwrap());
 				let (closing_tx, used_total_fee) = self.build_closing_transaction($new_feerate * closing_tx_max_weight / 1000, false);
 				sighash = Message::from_slice(&bip143::SighashComponents::new(&closing_tx).sighash_all(&closing_tx.input[0], &funding_redeemscript, self.channel_value_satoshis)[..]).unwrap();
-				let our_sig = self.secp_ctx.sign(&sighash, &self.local_keys.funding_key).unwrap();
+				let our_sig = self.secp_ctx.sign(&sighash, &self.local_keys.funding_key);
 				self.last_sent_closing_fee = Some(($new_feerate, used_total_fee));
 				return Ok((Some(msgs::ClosingSigned {
 					channel_id: self.channel_id,
@@ -1826,6 +1972,7 @@ impl Channel {
 		self.user_id
 	}
 
+	/// May only be called after funding has been initiated (ie is_funding_initiated() is true)
 	pub fn channel_monitor(&self) -> ChannelMonitor {
 		if self.channel_state < ChannelState::FundingCreated as u32 {
 			panic!("Can't get a channel monitor until funding has been created");
@@ -1860,6 +2007,12 @@ 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
@@ -1903,6 +2056,11 @@ impl Channel {
 		self.is_usable()
 	}
 
+	/// Returns true if funding_created was sent/received.
+	pub fn is_funding_initiated(&self) -> bool {
+		self.channel_state >= ChannelState::FundingCreated as u32
+	}
+
 	/// Returns true if this channel is fully shut down. True here implies that no further actions
 	/// may/will be taken on this channel, and thus this object should be freed. Any future changes
 	/// will be handled appropriately by the chain monitor.
@@ -1916,34 +2074,48 @@ impl Channel {
 	/// Called by channelmanager based on chain blocks being connected.
 	/// Note that we only need to use this to detect funding_signed, anything else is handled by
 	/// the channel_monitor.
-	pub fn block_connected(&mut self, header: &BlockHeader, height: u32, txn_matched: &[&Transaction], indexes_of_txn_matched: &[u32]) -> Option<msgs::FundingLocked> {
+	/// In case of Err, the channel may have been closed, at which point the standard requirements
+	/// 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);
 		if self.funding_tx_confirmations > 0 {
 			if header.bitcoin_hash() != self.last_block_connected {
 				self.last_block_connected = header.bitcoin_hash();
 				self.funding_tx_confirmations += 1;
-				if self.funding_tx_confirmations == CONF_TARGET as u64 {
-					if non_shutdown_state == ChannelState::FundingSent as u32 {
+				if self.funding_tx_confirmations == Channel::derive_minimum_depth(self.channel_value_satoshis*1000, self.value_to_self_msat) as u64 {
+					let need_commitment_update = if non_shutdown_state == ChannelState::FundingSent as u32 {
 						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_update_count += 1;
-						//TODO: Something about a state where we "lost confirmation"
+						true
+					} else if self.channel_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
 					} else if self.channel_state < ChannelState::ChannelFunded as u32 {
-						panic!("Started confirming a channel in a state pre-FundingSent?");
-					}
-					self.funding_tx_confirmed_in = header.bitcoin_hash();
+						panic!("Started confirming a channel in a state pre-FundingSent?: {}", self.channel_state);
+					} else {
+						// We got a reorg but not enough to trigger a force close, just update
+						// funding_tx_confirmed_in and return.
+						false
+					};
+					self.funding_tx_confirmed_in = Some(header.bitcoin_hash());
 
 					//TODO: Note that this must be a duplicate of the previous commitment point they sent us,
 					//as otherwise we will have a commitment transaction that they can't revoke (well, kinda,
 					//they can by sending two revoke_and_acks back-to-back, but not really). This appears to be
 					//a protocol oversight, but I assume I'm just missing something.
-					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).unwrap();
-					return Some(msgs::FundingLocked {
-						channel_id: self.channel_id,
-						next_per_commitment_point: next_per_commitment_point,
-					});
+					if need_commitment_update {
+						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);
+						return Ok(Some(msgs::FundingLocked {
+							channel_id: self.channel_id,
+							next_per_commitment_point: next_per_commitment_point,
+						}));
+					}
 				}
 			}
 		}
@@ -1952,9 +2124,19 @@ 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})});
 					} else {
 						self.funding_tx_confirmations = 1;
 						self.short_channel_id = Some(((height as u64)          << (5*8)) |
@@ -1964,7 +2146,7 @@ impl Channel {
 				}
 			}
 		}
-		None
+		Ok(None)
 	}
 
 	/// Called by channelmanager based on chain blocks being disconnected.
@@ -1977,8 +2159,8 @@ impl Channel {
 				return true;
 			}
 		}
-		if header.bitcoin_hash() == self.funding_tx_confirmed_in {
-			self.funding_tx_confirmations = CONF_TARGET as u64 - 1;
+		if Some(header.bitcoin_hash()) == self.funding_tx_confirmed_in {
+			self.funding_tx_confirmations = Channel::derive_minimum_depth(self.channel_value_satoshis*1000, self.value_to_self_msat) as u64 - 1;
 		}
 		false
 	}
@@ -1986,12 +2168,12 @@ 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, HandleError> {
+	pub fn get_open_channel(&self, chain_hash: Sha256dHash, fee_estimator: &FeeEstimator) -> Result<msgs::OpenChannel, APIError> {
 		if !self.channel_outbound {
 			panic!("Tried to open a channel for an inbound channel?");
 		}
 		if self.channel_state != ChannelState::OurInitSent as u32 {
-			return Err(HandleError{err: "Cannot generate an open_channel after we've moved forward", action: None});
+			panic!("Cannot generate an open_channel after we've moved forward");
 		}
 
 		if self.cur_local_commitment_transaction_number != (1 << 48) - 1 {
@@ -2004,7 +2186,7 @@ impl Channel {
 			chain_hash: chain_hash,
 			temporary_channel_id: self.channel_id,
 			funding_satoshis: self.channel_value_satoshis,
-			push_msat: 0, //TODO: Something about feerate?
+			push_msat: self.channel_value_satoshis * 1000 - self.value_to_self_msat,
 			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),
 			channel_reserve_satoshis: Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis),
@@ -2012,18 +2194,18 @@ impl Channel {
 			feerate_per_kw: fee_estimator.get_est_sat_per_1000_weight(ConfirmationTarget::Background) as u32,
 			to_self_delay: BREAKDOWN_TIMEOUT,
 			max_accepted_htlcs: OUR_MAX_HTLCS,
-			funding_pubkey: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key).unwrap(),
-			revocation_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key).unwrap(),
-			payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key).unwrap(),
-			delayed_payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key).unwrap(),
-			htlc_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key).unwrap(),
-			first_per_commitment_point: PublicKey::from_secret_key(&self.secp_ctx, &local_commitment_secret).unwrap(),
+			funding_pubkey: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key),
+			revocation_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key),
+			payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key),
+			delayed_payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key),
+			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),
 			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?");
 		}
@@ -2036,23 +2218,23 @@ 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),
 			channel_reserve_satoshis: Channel::get_our_channel_reserve_satoshis(self.channel_value_satoshis),
 			htlc_minimum_msat: self.our_htlc_minimum_msat,
-			minimum_depth: CONF_TARGET,
+			minimum_depth: Channel::derive_minimum_depth(self.channel_value_satoshis*1000, self.value_to_self_msat),
 			to_self_delay: BREAKDOWN_TIMEOUT,
 			max_accepted_htlcs: OUR_MAX_HTLCS,
-			funding_pubkey: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key).unwrap(),
-			revocation_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key).unwrap(),
-			payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key).unwrap(),
-			delayed_payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key).unwrap(),
-			htlc_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.htlc_base_key).unwrap(),
-			first_per_commitment_point: PublicKey::from_secret_key(&self.secp_ctx, &local_commitment_secret).unwrap(),
+			funding_pubkey: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key),
+			revocation_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.revocation_base_key),
+			payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.payment_base_key),
+			delayed_payment_basepoint: PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.delayed_payment_base_key),
+			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> {
@@ -2063,7 +2245,7 @@ impl Channel {
 		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((self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key).unwrap(), remote_initial_commitment_tx))
+		Ok((self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key), remote_initial_commitment_tx))
 	}
 
 	/// Updates channel state with knowledge of the funding transaction's txid/index, and generates
@@ -2089,6 +2271,7 @@ impl Channel {
 		let (our_signature, commitment_tx) = match self.get_outbound_funding_created_signature() {
 			Ok(res) => res,
 			Err(e) => {
+				log_error!(self, "Got bad signatures: {}!", e.err);
 				self.channel_monitor.unset_funding_info();
 				return Err(e);
 			}
@@ -2112,21 +2295,25 @@ 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) == 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::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::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()[..];
-		let our_bitcoin_key = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key).unwrap();
+		let our_bitcoin_key = PublicKey::from_secret_key(&self.secp_ctx, &self.local_keys.funding_key);
 
 		let msg = msgs::UnsignedChannelAnnouncement {
 			features: msgs::GlobalFeatures::new(),
@@ -2134,12 +2321,13 @@ impl Channel {
 			short_channel_id: self.get_short_channel_id().unwrap(),
 			node_id_1: if were_node_one { our_node_id } else { self.get_their_node_id() },
 			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 },
-			bitcoin_key_2: if were_node_one { self.their_funding_pubkey } else { our_bitcoin_key },
+			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();
-		let sig = self.secp_ctx.sign(&msghash, &self.local_keys.funding_key).unwrap();
+		let sig = self.secp_ctx.sign(&msghash, &self.local_keys.funding_key);
 
 		Ok((msg, sig))
 	}
@@ -2152,7 +2340,8 @@ 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});
 		}
@@ -2187,22 +2376,21 @@ 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,
+			source,
 			fail_reason: None,
-			local_removed_fulfilled: false,
-			pending_forward_state: None
 		});
 
 		let res = msgs::UpdateAddHTLC {
@@ -2219,22 +2407,25 @@ 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()
 	}
@@ -2245,11 +2436,14 @@ 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;
 			}
 		}
 
@@ -2257,7 +2451,7 @@ impl Channel {
 		let remote_commitment_tx = self.build_commitment_transaction(self.cur_remote_commitment_transaction_number, &remote_keys, false, true);
 		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).unwrap();
+		let our_sig = self.secp_ctx.sign(&remote_sighash, &self.local_keys.funding_key);
 
 		let mut htlc_sigs = Vec::new();
 
@@ -2265,8 +2459,8 @@ 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));
-			htlc_sigs.push(self.secp_ctx.sign(&htlc_sighash, &our_htlc_key).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), 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...
@@ -2284,8 +2478,8 @@ impl Channel {
 	/// 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)))
@@ -2296,9 +2490,9 @@ 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 {
+	pub fn get_shutdown(&mut self) -> Result<(msgs::Shutdown, Vec<(HTLCSource, [u8; 32])>), HandleError> {
+		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});
 			}
 		}
@@ -2323,8 +2517,8 @@ 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
@@ -2342,7 +2536,7 @@ 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
@@ -2350,16 +2544,16 @@ 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(..) {
+			if htlc.state == OutboundHTLCState::LocalAnnounced {
+				dropped_outbound_htlcs.push((htlc.source, htlc.payment_hash));
 			}
 			//TODO: Do something with the remaining HTLCs
 			//(we need to have the ChannelManager monitor them so we can claim the inbound HTLCs
@@ -2382,15 +2576,19 @@ 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};
 	use chain::transaction::OutPoint;
+	use util::test_utils;
+	use util::logger::Logger;
 	use secp256k1::{Secp256k1,Message,Signature};
 	use secp256k1::key::{SecretKey,PublicKey};
 	use crypto::sha2::Sha256;
 	use crypto::digest::Digest;
+	use std::sync::Arc;
 
 	struct TestFeeEstimator {
 		fee_est: u64
@@ -2411,6 +2609,7 @@ mod tests {
 	fn outbound_commitment_test() {
 		// Test vectors from BOLT 3 Appendix C:
 		let feeest = TestFeeEstimator{fee_est: 15000};
+		let logger : Arc<Logger> = Arc::new(test_utils::TestLogger::new());
 		let secp_ctx = Secp256k1::new();
 
 		let chan_keys = ChannelKeys {
@@ -2425,38 +2624,39 @@ mod tests {
 			channel_monitor_claim_key: SecretKey::from_slice(&secp_ctx, &hex::decode("0fffffffffffffffffffffffffffffffffffffffffffffffffffffffffffffff").unwrap()[..]).unwrap(),
 			commitment_seed: [0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff, 0xff],
 		};
-		assert_eq!(PublicKey::from_secret_key(&secp_ctx, &chan_keys.funding_key).unwrap().serialize()[..],
+		assert_eq!(PublicKey::from_secret_key(&secp_ctx, &chan_keys.funding_key).serialize()[..],
 				hex::decode("023da092f6980e58d2c037173180e9a465476026ee50f96695963e8efe436f54eb").unwrap()[..]);
 
-		let mut chan = Channel::new_outbound(&feeest, chan_keys, PublicKey::new(), 10000000, false, 42); // Nothing uses their network key in this test
+		let their_node_id = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &[42; 32]).unwrap());
+		let mut chan = Channel::new_outbound(&feeest, chan_keys, their_node_id, 10000000, 100000, false, 42, Arc::clone(&logger)).unwrap(); // Nothing uses their network key in this test
 		chan.their_to_self_delay = 144;
 		chan.our_dust_limit_satoshis = 546;
 
 		let funding_info = OutPoint::new(Sha256dHash::from_hex("8984484a580b825b9972d7adb15050b3ab624ccd731946b3eeddb92f4e7ef6be").unwrap(), 0);
 		chan.channel_monitor.set_funding_info((funding_info, Script::new()));
 
-		chan.their_payment_basepoint = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &hex::decode("4444444444444444444444444444444444444444444444444444444444444444").unwrap()[..]).unwrap()).unwrap();
-		assert_eq!(chan.their_payment_basepoint.serialize()[..],
+		chan.their_payment_basepoint = Some(PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &hex::decode("4444444444444444444444444444444444444444444444444444444444444444").unwrap()[..]).unwrap()));
+		assert_eq!(chan.their_payment_basepoint.unwrap().serialize()[..],
 				hex::decode("032c0b7cf95324a07d05398b240174dc0c2be444d96b159aa6c7f7b1e668680991").unwrap()[..]);
 
-		chan.their_funding_pubkey = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &hex::decode("1552dfba4f6cf29a62a0af13c8d6981d36d0ef8d61ba10fb0fe90da7634d7e13").unwrap()[..]).unwrap()).unwrap();
-		assert_eq!(chan.their_funding_pubkey.serialize()[..],
+		chan.their_funding_pubkey = Some(PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &hex::decode("1552dfba4f6cf29a62a0af13c8d6981d36d0ef8d61ba10fb0fe90da7634d7e13").unwrap()[..]).unwrap()));
+		assert_eq!(chan.their_funding_pubkey.unwrap().serialize()[..],
 				hex::decode("030e9f7b623d2ccc7c9bd44d66d5ce21ce504c0acf6385a132cec6d3c39fa711c1").unwrap()[..]);
 
-		chan.their_htlc_basepoint = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &hex::decode("4444444444444444444444444444444444444444444444444444444444444444").unwrap()[..]).unwrap()).unwrap();
-		assert_eq!(chan.their_htlc_basepoint.serialize()[..],
+		chan.their_htlc_basepoint = Some(PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&secp_ctx, &hex::decode("4444444444444444444444444444444444444444444444444444444444444444").unwrap()[..]).unwrap()));
+		assert_eq!(chan.their_htlc_basepoint.unwrap().serialize()[..],
 				hex::decode("032c0b7cf95324a07d05398b240174dc0c2be444d96b159aa6c7f7b1e668680991").unwrap()[..]);
 
-		chan.their_revocation_basepoint = PublicKey::from_slice(&secp_ctx, &hex::decode("02466d7fcae563e5cb09a0d1870bb580344804617879a14949cf22285f1bae3f27").unwrap()[..]).unwrap();
+		chan.their_revocation_basepoint = Some(PublicKey::from_slice(&secp_ctx, &hex::decode("02466d7fcae563e5cb09a0d1870bb580344804617879a14949cf22285f1bae3f27").unwrap()[..]).unwrap());
 
 		// We can't just use build_local_transaction_keys here as the per_commitment_secret is not
 		// derived from a commitment_seed, so instead we copy it here and call
 		// build_commitment_transaction.
-		let delayed_payment_base = PublicKey::from_secret_key(&secp_ctx, &chan.local_keys.delayed_payment_base_key).unwrap();
+		let delayed_payment_base = PublicKey::from_secret_key(&secp_ctx, &chan.local_keys.delayed_payment_base_key);
 		let per_commitment_secret = SecretKey::from_slice(&secp_ctx, &hex::decode("1f1e1d1c1b1a191817161514131211100f0e0d0c0b0a09080706050403020100").unwrap()[..]).unwrap();
-		let per_commitment_point = PublicKey::from_secret_key(&secp_ctx, &per_commitment_secret).unwrap();
-		let htlc_basepoint = PublicKey::from_secret_key(&secp_ctx, &chan.local_keys.htlc_base_key).unwrap();
-		let keys = TxCreationKeys::new(&secp_ctx, &per_commitment_point, &delayed_payment_base, &htlc_basepoint, &chan.their_revocation_basepoint, &chan.their_payment_basepoint, &chan.their_htlc_basepoint).unwrap();
+		let per_commitment_point = PublicKey::from_secret_key(&secp_ctx, &per_commitment_secret);
+		let htlc_basepoint = PublicKey::from_secret_key(&secp_ctx, &chan.local_keys.htlc_base_key);
+		let keys = TxCreationKeys::new(&secp_ctx, &per_commitment_point, &delayed_payment_base, &htlc_basepoint, &chan.their_revocation_basepoint.unwrap(), &chan.their_payment_basepoint.unwrap(), &chan.their_htlc_basepoint.unwrap()).unwrap();
 
 		let mut unsigned_tx: (Transaction, Vec<HTLCOutputInCommitment>);
 
@@ -2465,7 +2665,7 @@ mod tests {
 				unsigned_tx = chan.build_commitment_transaction(0xffffffffffff - 42, &keys, true, false);
 				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();
+				secp_ctx.verify(&sighash, &their_signature, &chan.their_funding_pubkey.unwrap()).unwrap();
 
 				chan.sign_commitment_transaction(&mut unsigned_tx.0, &their_signature);
 
@@ -2516,15 +2716,13 @@ 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,
+				state: InboundHTLCState::Committed,
 				local_removed_fulfilled: false,
 				pending_forward_state: None,
 			};
@@ -2533,15 +2731,13 @@ 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,
 			};
@@ -2550,49 +2746,43 @@ 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,
+				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,
+				state: InboundHTLCState::Committed,
 				local_removed_fulfilled: false,
 				pending_forward_state: None,
 			};
@@ -2953,10 +3143,10 @@ mod tests {
 		let base_secret = SecretKey::from_slice(&secp_ctx, &hex::decode("000102030405060708090a0b0c0d0e0f101112131415161718191a1b1c1d1e1f").unwrap()[..]).unwrap();
 		let per_commitment_secret = SecretKey::from_slice(&secp_ctx, &hex::decode("1f1e1d1c1b1a191817161514131211100f0e0d0c0b0a09080706050403020100").unwrap()[..]).unwrap();
 
-		let base_point = PublicKey::from_secret_key(&secp_ctx, &base_secret).unwrap();
+		let base_point = PublicKey::from_secret_key(&secp_ctx, &base_secret);
 		assert_eq!(base_point.serialize()[..], hex::decode("036d6caac248af96f6afa7f904f550253a0f3ef3f5aa2fe6838a95b216691468e2").unwrap()[..]);
 
-		let per_commitment_point = PublicKey::from_secret_key(&secp_ctx, &per_commitment_secret).unwrap();
+		let per_commitment_point = PublicKey::from_secret_key(&secp_ctx, &per_commitment_secret);
 		assert_eq!(per_commitment_point.serialize()[..], hex::decode("025f7117a78150fe2ef97db7cfc83bd57b2e2c0d0dd25eaf467a4a1c2a45ce1486").unwrap()[..]);
 
 		assert_eq!(chan_utils::derive_public_key(&secp_ctx, &per_commitment_point, &base_point).unwrap().serialize()[..],