  We propose a game-theoretic framework to study the outcomes of packetized
payments, a cross-ledger transaction protocol, with strategic and possibly
malicious agents. We derive the transaction failure rate and demonstrate that
without disciplinary mechanisms, packetized payments are likely to be
incomplete. Our analysis suggests that collateral deposits can prevent
malicious agents from taking advantage of the protocol. We further infer that
the deposit amount should depend on the underlying asset price volatility or
that it should be dynamically adjusted as the price changes.
