<p>Context:
I am exploring cross-chain transfers from Bitcoin to another network and want to avoid a common issue in HTLCs where users manage secrets and could potentially cause harm to liquidity providers (LPs).</p>
<p>Problem:
In typical HTLC implementations, the user locks funds first and then reveals a secret to claim the funds on another network. However, this can lead to a situation where a user creates an empty HTLC, causing the LP to lock funds. If the user then chooses not to continue the transaction, this can cause resource issues or even a denial-of-service (DoS) attack on the LP, as their funds are locked unnecessarily.</p>
<p>Question:
Is there any known protocol similar to HTLC that allows for cross-chain transfers from Bitcoin to other networks, but where secret management isn't solely handled by the user? Additionally, how can the protocol ensure that users cannot maliciously lock LP funds without completing the process, thus preventing a potential DoS scenario?</p>

CC BY-SA 4.0
2024-10-20T13:20:21.107Z
It is unclear to me what your issue is. What is an "empty HTLC"?
Pieter Wuille
CC BY-SA 4.0
2024-10-24T13:57:30.673Z
Are you trying to describe the free option problem? E.g. something along the liens of https://blog.boltz.exchange/p/the-problem-with-free-options-69f9f59a2d48
TheCharlatan
<bitcoin-core><blockchain><hash-time-locked-contract><atomic-swap><coinswap>
Is there an HTLC-like protocol for cross-chain transfers without user-controlled secret management and protection against LP abuse?
Nerses Asaturyan
# Is there an HTLC-like protocol for cross-chain transfers without user-controlled secret management and protection against LP abuse?

(Asked by: username_0 on 2024-10-18)

Context:
I am exploring cross-chain transfers from Bitcoin to another network and want to avoid a common issue in HTLCs where users manage secrets and could potentially cause harm to liquidity providers (LPs).

Problem:
In typical HTLC implementations, the user locks funds first and then reveals a secret to claim the funds on another network. However, this can lead to a situation where a user creates an empty HTLC, causing the LP to lock funds. If the user then chooses not to continue the transaction, this can cause resource issues or even a denial-of-service (DoS) attack on the LP, as their funds are locked unnecessarily.

Question:
Is there any known protocol similar to HTLC that allows for cross-chain transfers from Bitcoin to other networks, but where secret management isn't solely handled by the user? Additionally, how can the protocol ensure that users cannot maliciously lock LP funds without completing the process, thus preventing a potential DoS scenario?

**Tags:** bitcoin-core, blockchain, hash-time-locked-contract, atomic-swap, coinswap

> **Comments:**
> **username_1**: It is unclear to me what your issue is. What is an "empty HTLC"?  
> **username_2**: Are you trying to describe the free option problem? E.g. something along the liens of https://blog.boltz.exchange/p/the-problem-with-free-options-69f9f59a2d48  

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## 0 answers

