# Why Ketju rejected Lightning Network

- URL: https://riadefi.com/rejections/lightning-network/
- Exposure: other
- Memo version: v1
- Reviewed: 2026-08-19
- Next review: 2026-11-19

## The memo

REJECTED. Lightning is valuable Bitcoin payment infrastructure, but public channel capacity is not a passive investable protocol position. Earning routing or lease fees requires operating a hot, continuously available node, choosing peers, balancing inbound and outbound liquidity, managing backups, and monitoring for revoked-state broadcasts. That operating business is unsuitable for a standard advisory diversification sleeve even though the underlying settlement asset and base chain are approved.

## What would reopen the file

- A separate sophisticated mandate authorizes Lightning routing as an operating business with node, key, peer, liquidity, and loss limits
- A named wallet or Lightning service passes a custodian/provider review for transactional use
- A proposed-size cooperative and unilateral close test completes within the documented fee and time limits
- Any lost channel state, missed breach remedy, or unrecoverable node-key event opens an immediate review

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Published by Ketju Research (https://ketjuresearch.com). Educational analysis only; not legal, tax, compliance, or investment advice.
Machine-readable index: https://riadefi.com/llms.txt · Content API: https://riadefi.com/content.json