From ba2fbfe2901db35bb0cc688757f7e88dc52ff7b6 Mon Sep 17 00:00:00 2001
From: Adam Soltys <adam@coinos.io>
Date: Sun, 15 Feb 2026 16:58:08 -0800
Subject: fix custodial bitcoin sends

---
 lib/ark.ts         | 16 +++++++++++-----
 routes/payments.ts | 24 +++++++++++++++++-------
 2 files changed, 28 insertions(+), 12 deletions(-)

diff --git a/lib/ark.ts b/lib/ark.ts
index 52f441d7..3522c9cf 100644
--- a/lib/ark.ts
+++ b/lib/ark.ts
@@ -24,6 +24,7 @@ const getWallet = async () => {
 };
 
 let refreshing = false;
+const failedBoardingOutpoints = new Set<string>();
 
 const withTimeout = <T>(promise: Promise<T>, ms: number, label: string) =>
   Promise.race([
@@ -89,11 +90,14 @@ export const refreshArkWallet = async () => {
       const info = await provider.getInfo();
       const ramps = new Ramps(w);
 
-      // Try each boarding UTXO, freshest first
-      const sorted = [...confirmed].sort(
-        (a: any, b: any) =>
-          (b.status?.block_height || 0) - (a.status?.block_height || 0),
-      );
+      // Try each boarding UTXO, freshest first, skipping known failures
+      const outpointKey = (u: any) => `${u.txid}:${u.vout}`;
+      const sorted = [...confirmed]
+        .filter((u: any) => !failedBoardingOutpoints.has(outpointKey(u)))
+        .sort(
+          (a: any, b: any) =>
+            (b.status?.block_height || 0) - (a.status?.block_height || 0),
+        );
 
       for (const utxo of sorted) {
         try {
@@ -103,8 +107,10 @@ export const refreshArkWallet = async () => {
             "ark onboard",
           );
           l("ark onboarded boarding utxo:", utxo.value, "sats, txid:", txid);
+          failedBoardingOutpoints.clear();
           break;
         } catch (e: any) {
+          failedBoardingOutpoints.add(outpointKey(utxo));
           warn("ark onboard failed:", utxo.value, "sats:", e.message);
         }
       }
diff --git a/routes/payments.ts b/routes/payments.ts
index 6bed1309..4bdd0d30 100644
--- a/routes/payments.ts
+++ b/routes/payments.ts
@@ -89,13 +89,23 @@ export default {
               aid,
             });
           } else {
-            p = await sendInternal({
-              invoice,
-              amount,
-              memo,
-              recipient,
-              sender: user,
-            });
+            // Check if recipient account is non-custodial (vault)
+            const recipientAccount = invoice?.aid ? await g(`account:${invoice.aid}`) : null;
+            if (recipientAccount?.pubkey || recipientAccount?.seed) {
+              p = await sendOnchain({
+                amount: amount || invoice.amount,
+                address: invoice.hash,
+                user,
+              });
+            } else {
+              p = await sendInternal({
+                invoice,
+                amount,
+                memo,
+                recipient,
+                sender: user,
+              });
+            }
           }
         } else if (fund) {
           p = await debit({
-- 
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