1. 1.
    Less decentralised than Lightning: Since the platform possesses pre-signed transactions, a malicious platform could refuse to broadcast or delete the transactions, grief attacking the entities involved in the transaction. Although such an attack would come at a reputational risk to the platform, this places more trust on the platform than Lightning.
  2. 2.
    Slow confirmation times: Bitcoin transactions are slower than Stellar transactions, so the platform needs to wait for a given period of time before it can confirm an investment or withdrawal.
  3. 3.
    High Fees: Bitcoin transaction fees vary widely, and sometimes it can be expensive to spend Bitcoin. Since this model does not make use of a stablecoin, the fees associated with a stablecoin is discounted and more than accounts for any Bitcoin transaction fee involved.