Key Reveal Failure Modes

Key reveal failure modes refer to scenarios in an atomic swap where the party holding the secret key fails to reveal it, or reveals it too late, preventing the counterparty from claiming their assets. The atomicity of the swap relies on the participant providing the secret key to unlock the funds on the counterparty's chain.

If this key is not provided, the funds remain locked in the contract until the timeout period expires, at which point the original owner can reclaim them. While this is a designed safety mechanism, it can be abused as a stalling tactic or result from technical failures, causing liquidity to be tied up and preventing the successful completion of the swap.

This failure mode highlights the importance of reliable off-chain communication and clear protocol incentives to encourage timely key reveal, ensuring that swaps complete as expected and liquidity remains fluid.