[Bug]: channel creation fails with app error toast on upgraded wallet

[piotr-iohk]

What happened?

After updating Bitkit from 2.0.5 to 2.0.6 (180), wallet had 3 channels. One channel was closed, then a new channel creation was attempted.
During channel creation attempt, app showed toast: app error.

Expected behavior

After closing one channel, creating a replacement channel should complete without showing a generic app error toast.

Steps to Reproduce

1. Use an older existing wallet (upgraded from 2.0.5 to 2.0.6 (180)).
2. Ensure wallet has some channels.
3. Close 1 channel.
4. Attempt to create 1 new channel.
5. Observe toast: app error.

Logs / Screenshots / Recordings

bitkit_logs_2026-03-02_16-36-48.zip

ScreenRecording_03-02-2026.17-35-35_1.MP4

Bitkit Version

2.0.6 (180) (updated from 2.0.5)

Device / OS

iPhone 13

Reproducibility

Rarely (once or twice)
Observed on older wallet only. Managed to create channel via transfer + CJIT on a fresh wallet.

Additional context

• Scoped behavior: issue reproduced on older wallet after app update, not on fresh wallet.
• User will attach logs and recording.

[ovitrif]

Log Analysis

Root Cause: Blocktank per-node capacity limit

The logs confirm this is caused by the Blocktank LSP's per-node capacity limit being exceeded.

Timeline (from bitkit_foreground_2026-03-02_16-14-28.log and 16-31-36.log)

Initial state (16:14): App starts with 3 active channels to the LSP node, onchain balance of 19,069 sats.

Capacity limit already hit before close (16:25): CJIT receive attempts fail 3 times with:

Failed order channel size check for node 0257e8fa... Node capacity is above our capacity limit.

The node was already at the limit with 3 open channels -- the issue existed before any channel was closed.

Channel close (16:29:09): Cooperative close of channel df782b... (780,750 sats capacity). Close tx 0576fd47... is broadcast but remains unconfirmed for the rest of the session.

Channel open attempts fail (16:29 - 16:36): 7+ attempts to open a new channel via Blocktank order, all rejected with:

Node capacity is above our capacity limit... (type: CHANNEL_REJECTED_BY_LSP)

The LSP still counts the closed channel's capacity because the closing tx hasn't confirmed yet. No new block was mined during the session.

Secondary issue: On-chain balance was also ~1,000 sats short of what's needed to fund a new channel (have 24,971, need ~25,971), so even if the LSP had accepted, funding would have failed.

Resolution

Waiting for 1 block confirmation of the cooperative close tx should free up the capacity and allow new channel creation.

UX Improvement Opportunity

The app shows a generic "App Error" toast, but the underlying Blocktank error is specific and actionable (CHANNEL_REJECTED_BY_LSP: Node capacity is above our capacity limit). Surfacing this to the user -- or better, guiding them to wait for the close to confirm -- would improve the experience. The error is available but gets swallowed into a generic AppError at:

• ReceiveCjitAmount.swift:90 (CJIT path)
• BlocktankViewModel.swift:147 (order path)