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# // RISK DISCLAIMERS

Effective Date: March 2026 · Last Updated: March 2026

// ⚠ READ BEFORE USING LIGHTNING PAYMENTS

Timmy Time includes optional Lightning Network payment functionality. This is experimental software. You can lose money. By using payment features, you acknowledge all risks described on this page.

// CRYPTOCURRENCY VOLATILITY RISK

Bitcoin and satoshis (the units used in Lightning payments) are highly volatile assets:

- The value of Bitcoin can decrease by 50% or more in a short period
- Satoshi amounts in Lightning channels may be worth significantly less in fiat terms by the time you close channels
- No central bank, government, or institution guarantees the value of Bitcoin
- Past performance of Bitcoin price is not indicative of future results
- You may receive no return on any Bitcoin held in payment channels

Only put into Lightning channels what you can afford to lose entirely.

// EXPERIMENTAL TECHNOLOGY RISK

The Lightning Network and this software are experimental:

- Software bugs — Timmy Time is pre-production software. Bugs may cause unintended payment behavior, data loss, or service interruptions
- Protocol risk — Lightning Network protocols are under active development; implementations may have bugs, including security vulnerabilities
- AI agent actions — AI agents and automations may take unintended actions. Review all agent-initiated payments before confirming
- No audit — this software has not been independently security audited
- Dependency risk — third-party libraries, Ollama, and connected services may have their own vulnerabilities

Treat all payment functionality as beta. Do not use for high-value transactions.

// LIGHTNING NETWORK SPECIFIC RISKS

#### Payment Finality

Lightning payments that successfully complete are irreversible. There is no chargeback mechanism, no dispute process, and no third party who can reverse a settled payment. Verify all payment details before confirming.

#### Channel Force-Closure Risk

Lightning channels can be force-closed under certain conditions:

- If your Lightning node goes offline for an extended period, your counterparty may force-close the channel
- Force-closure requires an on-chain Bitcoin transaction with associated mining fees
- Force-closure locks your funds for a time-lock period (typically 144–2016 blocks)
- During high Bitcoin network congestion, on-chain fees to recover funds may be substantial

#### Routing Failure Risk

Lightning payments can fail to route:

- Insufficient liquidity in the payment path means your payment may fail
- Failed payments are not charged, but repeated failures indicate a network or balance issue
- Large payments are harder to route than small ones due to channel capacity constraints

#### Liquidity Risk

- Inbound and outbound liquidity must be actively managed
- You cannot receive payments if you have no inbound capacity
- You cannot send payments if you have no outbound capacity
- Channel rebalancing has costs (routing fees or on-chain fees)

#### Watchtower Risk

Without an active watchtower service, you are vulnerable to channel counterparties broadcasting outdated channel states while your node is offline. This could result in loss of funds.

// REGULATORY & LEGAL RISK

The legal and regulatory status of Lightning Network payments is uncertain:

- Money transmission laws — in some jurisdictions, routing Lightning payments may constitute unlicensed money transmission. Consult a lawyer before running a routing node
- Tax obligations — cryptocurrency transactions may be taxable events in your jurisdiction. You are solely responsible for your tax obligations
- Regulatory change — cryptocurrency regulations are evolving rapidly. Actions that are legal today may become restricted or prohibited
- Sanctions — you are responsible for ensuring your Lightning payments do not violate applicable sanctions laws
- KYC/AML — this software does not perform identity verification. You are responsible for your own compliance obligations

Consult a qualified legal professional before using Lightning payments for commercial purposes.

// NO GUARANTEED OUTCOMES

We make no guarantees about:

- The continuous availability of the Service or any connected node
- The successful routing of any specific payment
- The recovery of funds from a force-closed channel
- The accuracy, completeness, or reliability of AI-generated responses
- The outcome of any automation or agent-initiated action
- The future value of any Bitcoin or satoshis
- Compatibility with future versions of the Lightning Network protocol

// RISK ACKNOWLEDGMENT

By using the Lightning payment features of Timmy Time, you acknowledge that:

1. You have read and understood all risks described on this page
2. You are using the Service voluntarily and at your own risk
3. You have conducted your own due diligence
4. You will not hold Timmy Time or its operators liable for any losses
5. You will comply with all applicable laws and regulations in your jurisdiction

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