Lightning
Liquidity
Inbound and outbound Lightning liquidity explained in accessible language.
Liquidity describes where the bitcoin in your channels currently sits. Funds on your side can be sent; capacity on the other side determines how much you can receive.
Two directions
- Outbound liquidity — your side of a channel; the amount you can pay out over Lightning.
- Inbound liquidity — the far side of a channel; the amount you can receive over Lightning.
Why it is handled for you
Managing liquidity manually is node-operator work. Wallet infrastructure can arrange it in the background so everyday users do not need to plan channel balances before being paid. Arranging capacity can involve a fee, shown before you confirm.