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title: Connector Risk Mitigations

draft: 1

Connector Risk Mitigations

Interledger connectors take some risk in exchange for the revenue they generate from facilitating payments. This document outlines the major categories of risks connectors face and suggests some possible mitigations.

This is a work in progress and is not an exhaustive list.

Monitoring is a must! Even connectors that implement all of these strategies should monitor their transaction patterns and use warnings or kill switches to avoid losing money in the case of an unexpected attack.

Fulfillment Failure

The main risk connectors face in Interledger is being unable to fulfill the incoming transfer after their outgoing transfer has been executed.

Possible mitigations include:

Liquidity Exhaustion

Attackers could tie up connectors' liquidity by preparing payments through them that the attacker knows will fail. For example, an attacker could prepare numerous payments to itself and then not fulfill any of them.

Possible mitigations include:

Exchange Rate Volatility

Once connectors prepare their outgoing transfers, they are committed to the payment even if the exchange rate between the assets fluctuates.

Possible approaches include: