user138294: I've read so far all official Muun articles about the submarine swaps and emergency kits, but one thing still has me confused.
Let's say I receive $500 worth of Bitcoin on-chain to my Muun wallet. These funds are stored on-chain and stay there for now as far as I understand. Now I make a payment via Lightning Network (LN) let's say worth $3. Now you do a submarine swap in the background as far as I understood.
But this is where I loose the plot. The party who sends the lightning payment need to get the BTC on-chain from my wallet or not? This would mean on-chain fees accure for every lightning payment?
Another question I have, if I receive e.g 100$ worth of Bitcoin via lightning to my Muun wallet, will I finally receive these on-chain aka is the whole balance that I see in a Muun wallet exclusively stored on-chain
Thanks a lot for your help!

user121614: At the time of writing this, Muun does indeed store all balance on-chain. It does not open any Lightning channels and instead uses submarine swaps for Lightning payments, which means it has to make an on-chain transaction (and pay on-chain fees) every time you send or receive. It also means your Lightning payments might have to wait for a block confirmation (10 minutes on average) if Muun decides your transaction has too much risk of being replaced while unconfirmed.
This makes Muun essentially an on-chain wallet with some Lightning capability, but without enjoying the two main selling points of Lightning, which are low fees and instant payments. According to Muun themselves, this design is a result of prioritizing user security.[1] However, they know that it's less than ideal and plan to transition to an "off-chain architecture that doesn't compromise user security".[2]

138294: <p>I've read so far all official Muun articles about the submarine swaps and emergency kits, but one thing still has me confused.</p>
<p>Let's say I receive $500 worth of Bitcoin on-chain to my Muun wallet. These funds are stored on-chain and stay there for now as far as I understand. Now I make a payment via Lightning Network (LN) let's say worth $3. Now you do a submarine swap in the background as far as I understood.</p>
<p>But this is where I loose the plot. The party who sends the lightning payment need to get the BTC on-chain from my wallet or not? This would mean on-chain fees accure for every lightning payment?</p>
<p>Another question I have, if I receive e.g 100$ worth of Bitcoin via lightning to my Muun wallet, will I finally receive these on-chain aka is the whole balance that I see in a Muun wallet exclusively stored on-chain</p>
<p>Thanks a lot for your help!</p>
 121614: <p>At the time of writing this, Muun does indeed store all balance on-chain. It does not open any Lightning channels and instead uses submarine swaps for Lightning payments, which means it has to make an on-chain transaction (and pay on-chain fees) every time you send or receive. It also means your Lightning payments might have to wait for a block confirmation (10 minutes on average) if Muun decides your transaction has too much risk of being replaced while unconfirmed.</p>
<p>This makes Muun essentially an on-chain wallet with some Lightning capability, but without enjoying the two main selling points of Lightning, which are low fees and instant payments. According to Muun themselves, this design is a result of prioritizing user security.<a href="https://twitter.com/MuunWallet/status/1588934838966706176" rel="nofollow noreferrer">[1]</a> However, they know that it's less than ideal and plan to transition to an &quot;off-chain architecture that doesn't compromise user security&quot;.<a href="https://twitter.com/MuunWallet/status/1588935172543885313" rel="nofollow noreferrer">[2]</a></p>
