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# Lightning Network ⚡ Cheat Sheet
Everything you need to work with the Lightning Network in a dense and concise form.
## Channels
- **Local balance**: outgoing liquidity
- **Remote balance**: incoming liquidity
A new channel opened with a peer will have 100% local balance. Initially, you can only **send** funds.
A new channel that a peer has initiated with you will have 100% remote balance. Initially, you can only **receive** funds.
### Circular Rebalance
Excess **local** balance on one channel is used to pay _yourself_ with funds coming in on another channel with excess **remote** balance.
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
```
1 sat (satoshi) = 1 / 100,000,000 = 0.00000001 BTC
1 ppm (part per million) = 1 / 1,000,000
1 bps (basis point) = 1 / 10,000
1 % (percent) = 1 / 100
```
### ppm to %
```
1 ppm = 0.0001%
10 ppm = 0.001%
100 ppm = 0.01%
1000 ppm = 0.1%
```
### ppm to bps
```
1000 ppm = 1 bps
```
### bps to %
```
1 bps = 0.01%
10 bps = 0.1%
100 bps = 1%
```
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