From f0f2100b5ce21ad72ff5ccd6e15e20c1da8c7b6f Mon Sep 17 00:00:00 2001
From: Yuval Adam <_@yuv.al>
Date: Sat, 7 Aug 2021 11:06:46 +0300
Subject: Expand payments, forwards and rebalances

---
 README.md | 24 +++++++++++++++++-------
 1 file changed, 17 insertions(+), 7 deletions(-)

diff --git a/README.md b/README.md
index 4af4bd0..79fcc10 100644
--- a/README.md
+++ b/README.md
@@ -7,14 +7,9 @@ Everything you need to work with the Lightning Network in a dense and concise fo
 - **Local balance**: outgoing liquidity
 - **Remote balance**: incoming liquidity
 
-Payments are attempted in two phases:
+A new channel opened with a peer will have 100% local balance. Initially, you can only **send** funds.
 
-- Pathfinding: traversing the channel graph and finding a path to the destination node
-- Routing: attempting to actually send funds on a given path.
-
-Public graph information includes channel capacity and fees, and is known in **path finding** phase.
-
-Private graph information includes the current liquidity balance, and can only be discovered if a payment succeeds or fails on a **routing** attempt.
+A new channel that a peer has initiated with you will have 100% remote balance. Initially, you can only **receive** funds.
 
 ### Circular Rebalance
 
@@ -22,10 +17,25 @@ Excess **local** balance on one channel is used to pay _yourself_ with funds com
 
 At least two peers (i.e. two separate channels) are needed for a rebalance to occur.
 
+### Payments
+
+Payments are attempted in two phases.
+
+- **Pathfinding**: traversing the channel graph and finding a path to the destination node
+- **Routing**: attempting to actually send funds on a given path.
+
+Public graph information includes channel capacity and fees, and is known in **path finding** phase. Potential paths can be resolved locally without interaction with the network.
+
+Private graph information includes the current liquidity balance, and can only be discovered if a payment succeeds or fails on a **routing** attempt.
+
 ### Fees
 
 Fees are always charged on the **outgoing** path, when a payment is **forwarded**.
 
+If a channel is draining your liquidity, raise the fees.
+
+If a channel is pushing lots of liquidity, you cannot raise incoming fees, because that's not a thing. You have to raise your fees on _all_ your other channels (or at least on the channels that are received these payments/forwards.)
+
 ## Numbers
 
 ### Definitions
-- 
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