diff --git a/src/commonMain/kotlin/fr/acinq/lightning/io/Peer.kt b/src/commonMain/kotlin/fr/acinq/lightning/io/Peer.kt
index b7ffc6f87..87ddd9fc4 100644
--- a/src/commonMain/kotlin/fr/acinq/lightning/io/Peer.kt
+++ b/src/commonMain/kotlin/fr/acinq/lightning/io/Peer.kt
@@ -11,10 +11,7 @@ import fr.acinq.lightning.channel.*
 import fr.acinq.lightning.channel.states.*
 import fr.acinq.lightning.crypto.noise.*
 import fr.acinq.lightning.db.*
-import fr.acinq.lightning.payment.IncomingPaymentHandler
-import fr.acinq.lightning.payment.OutgoingPaymentFailure
-import fr.acinq.lightning.payment.OutgoingPaymentHandler
-import fr.acinq.lightning.payment.PaymentRequest
+import fr.acinq.lightning.payment.*
 import fr.acinq.lightning.serialization.Encryption.from
 import fr.acinq.lightning.serialization.Serialization.DeserializationResult
 import fr.acinq.lightning.transactions.Transactions
@@ -411,6 +408,9 @@ class Peer(
         receiveLoop() // This suspends until the coroutines is cancelled or the socket is closed
     }
 
+    /** We try swapping funds in whenever one of those fields is updated. */
+    data class TrySwapInFlow(val currentBlockHeight: Int, val walletState: WalletState, val feerate: FeeratePerKw, val liquidityPolicy: LiquidityPolicy)
+
     /**
      * This function needs to be called after [Peer] is initialized, to start watching the swap-in wallet
      * and trigger swap-ins.
@@ -418,23 +418,26 @@ class Peer(
      */
     suspend fun startWatchSwapInWallet() {
         logger.info { "starting swap-in watch job" }
-        if (swapInJob != null) return
-        // wait to have a swap-in feerate available
-        logger.info { "waiting for feerates" }
-        swapInFeeratesFlow.filterNotNull().first()
+        if (swapInJob != null) {
+            logger.info { "swap-in watch job already started" }
+            return
+        }
         logger.info { "waiting for peer to be ready" }
         waitForPeerReady()
         swapInJob = launch {
-            swapInWallet.walletStateFlow.combine(currentTipFlow.filterNotNull()) { walletState, currentTip -> currentTip.first to walletState }
-                .filter { (_, walletState) -> walletState.consistent }
-                .collect { (currentBlockHeight, walletState) ->
+            swapInWallet.walletStateFlow
+                .filter { it.consistent }
+                .combine(currentTipFlow.filterNotNull()) { walletState, currentTip -> Pair(walletState, currentTip.first) }
+                .combine(swapInFeeratesFlow.filterNotNull()) { (walletState, currentTip), feerate -> Triple(walletState, currentTip, feerate) }
+                .combine(nodeParams.liquidityPolicy) { (walletState, currentTip, feerate), policy -> TrySwapInFlow(currentTip, walletState, feerate, policy) }
+                .collect { w ->
                     // Local mutual close txs from pre-splice channels can be used as zero-conf inputs for swap-in to facilitate migration
                     val mutualCloseTxs = channels.values
                         .filterIsInstance<Closing>()
                         .filterNot { it.commitments.params.channelFeatures.hasFeature(Feature.DualFunding) }
                         .flatMap { state -> state.mutualClosePublished.map { closingTx -> closingTx.tx.txid } }
                     val trustedTxs = trustedSwapInTxs + mutualCloseTxs
-                    swapInCommands.send(SwapInCommand.TrySwapIn(currentBlockHeight, walletState, walletParams.swapInParams, trustedTxs))
+                    swapInCommands.send(SwapInCommand.TrySwapIn(w.currentBlockHeight, w.walletState, walletParams.swapInParams, trustedTxs))
                 }
         }
     }
@@ -768,6 +771,7 @@ class Peer(
     // MUST ONLY BE SET BY processEvent()
     private var peerConnection: PeerConnection? = null
 
+    @OptIn(ExperimentalCoroutinesApi::class)
     private suspend fun processEvent(cmd: PeerCommand, logger: MDCLogger) {
         when (cmd) {
             is Connected -> {
@@ -1008,7 +1012,6 @@ class Peer(
                         val (feerate, fee) = watcher.client.computeSpliceCpfpFeerate(channel.commitments, targetFeerate, spliceWeight = weight, logger)
 
                         logger.info { "requesting splice-in using balance=${cmd.walletInputs.balance} feerate=$feerate fee=$fee" }
-
                         nodeParams.liquidityPolicy.value.maybeReject(cmd.walletInputs.balance.toMilliSatoshi(), fee.toMilliSatoshi(), LiquidityEvents.Source.OnChainWallet, logger)?.let { rejected ->
                             logger.info { "rejecting splice: reason=${rejected.reason}" }
                             nodeParams._nodeEvents.emit(rejected)
@@ -1022,6 +1025,12 @@ class Peer(
                             spliceOut = null,
                             feerate = feerate
                         )
+                        // If the splice fails, we immediately unlock the utxos to reuse them in the next attempt.
+                        spliceCommand.replyTo.invokeOnCompletion { ex ->
+                            if (ex == null && spliceCommand.replyTo.getCompleted() is ChannelCommand.Commitment.Splice.Response.Failure) {
+                                swapInCommands.trySend(SwapInCommand.UnlockWalletInputs(cmd.walletInputs.map { it.outPoint }.toSet()))
+                            }
+                        }
                         input.send(WrappedChannelCommand(channel.channelId, spliceCommand))
                     }
                     else -> {