diff --git a/channeld/channeld.c b/channeld/channeld.c
index add6ca687..c8a29c0ce 100644
--- a/channeld/channeld.c
+++ b/channeld/channeld.c
@@ -445,14 +445,13 @@ static void check_short_ids_match(struct peer *peer)
 
 	if (!short_channel_id_eq(&peer->short_channel_ids[LOCAL],
 				 &peer->short_channel_ids[REMOTE]))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "We disagree on short_channel_ids:"
-			    " I have %s, you say %s",
-			    type_to_string(peer, struct short_channel_id,
-					   &peer->short_channel_ids[LOCAL]),
-			    type_to_string(peer, struct short_channel_id,
-					   &peer->short_channel_ids[REMOTE]));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "We disagree on short_channel_ids:"
+				 " I have %s, you say %s",
+				 type_to_string(peer, struct short_channel_id,
+						&peer->short_channel_ids[LOCAL]),
+				 type_to_string(peer, struct short_channel_id,
+						&peer->short_channel_ids[REMOTE]));
 }
 
 static void announce_channel(struct peer *peer)
@@ -550,17 +549,15 @@ static void handle_peer_funding_locked(struct peer *peer, const u8 *msg)
 	peer->old_remote_per_commit = peer->remote_per_commit;
 	if (!fromwire_funding_locked(msg, &chanid,
 				     &peer->remote_per_commit))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad funding_locked %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad funding_locked %s", tal_hex(msg, msg));
 
 	if (!channel_id_eq(&chanid, &peer->channel_id))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Wrong channel id in %s (expected %s)",
-			    tal_hex(tmpctx, msg),
-			    type_to_string(msg, struct channel_id,
-					   &peer->channel_id));
+		peer_failed_err(peer->pps, &chanid,
+				"Wrong channel id in %s (expected %s)",
+				tal_hex(tmpctx, msg),
+				type_to_string(msg, struct channel_id,
+					       &peer->channel_id));
 
 	peer->tx_sigs_allowed = false;
 	peer->funding_locked[REMOTE] = true;
@@ -581,19 +578,17 @@ static void handle_peer_announcement_signatures(struct peer *peer, const u8 *msg
 					      &peer->short_channel_ids[REMOTE],
 					      &peer->announcement_node_sigs[REMOTE],
 					      &peer->announcement_bitcoin_sigs[REMOTE]))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad announcement_signatures %s",
-			    tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad announcement_signatures %s",
+				 tal_hex(msg, msg));
 
 	/* Make sure we agree on the channel ids */
 	if (!channel_id_eq(&chanid, &peer->channel_id)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Wrong channel_id: expected %s, got %s",
-			    type_to_string(tmpctx, struct channel_id,
-					   &peer->channel_id),
-			    type_to_string(tmpctx, struct channel_id, &chanid));
+		peer_failed_err(peer->pps, &chanid,
+				"Wrong channel_id: expected %s, got %s",
+				type_to_string(tmpctx, struct channel_id,
+					       &peer->channel_id),
+				type_to_string(tmpctx, struct channel_id, &chanid));
 	}
 
 	peer->have_sigs[REMOTE] = true;
@@ -624,9 +619,8 @@ static void handle_peer_add_htlc(struct peer *peer, const u8 *msg)
 				      , tlvs
 #endif
 		    ))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad peer_add_htlc %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad peer_add_htlc %s", tal_hex(msg, msg));
 
 #if EXPERIMENTAL_FEATURES
 	blinding = tlvs->blinding;
@@ -635,10 +629,9 @@ static void handle_peer_add_htlc(struct peer *peer, const u8 *msg)
 				   cltv_expiry, &payment_hash,
 				   onion_routing_packet, blinding, &htlc, NULL);
 	if (add_err != CHANNEL_ERR_ADD_OK)
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad peer_add_htlc: %s",
-			    channel_add_err_name(add_err));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad peer_add_htlc: %s",
+				 channel_add_err_name(add_err));
 }
 
 static void handle_peer_feechange(struct peer *peer, const u8 *msg)
@@ -647,9 +640,8 @@ static void handle_peer_feechange(struct peer *peer, const u8 *msg)
 	u32 feerate;
 
 	if (!fromwire_update_fee(msg, &channel_id, &feerate)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fee %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fee %s", tal_hex(msg, msg));
 	}
 
 	/* BOLT #2:
@@ -660,9 +652,8 @@ static void handle_peer_feechange(struct peer *peer, const u8 *msg)
 	 *    - MUST fail the channel.
 	 */
 	if (peer->channel->opener != REMOTE)
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "update_fee from non-opener?");
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "update_fee from non-opener?");
 
 	status_debug("update_fee %u, range %u-%u",
 		     feerate, peer->feerate_min, peer->feerate_max);
@@ -675,10 +666,9 @@ static void handle_peer_feechange(struct peer *peer, const u8 *msg)
 	 *     - SHOULD fail the channel.
 	 */
 	if (feerate < peer->feerate_min || feerate > peer->feerate_max)
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "update_fee %u outside range %u-%u",
-			    feerate, peer->feerate_min, peer->feerate_max);
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "update_fee %u outside range %u-%u",
+				 feerate, peer->feerate_min, peer->feerate_max);
 
 	/* BOLT #2:
 	 *
@@ -688,10 +678,9 @@ static void handle_peer_feechange(struct peer *peer, const u8 *msg)
 	 *      - but MAY delay this check until the `update_fee` is committed.
 	 */
 	if (!channel_update_feerate(peer->channel, feerate))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "update_fee %u unaffordable",
-			    feerate);
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "update_fee %u unaffordable",
+				 feerate);
 
 	status_debug("peer updated fee to %u", feerate);
 }
@@ -1275,9 +1264,8 @@ static void handle_peer_commit_sig(struct peer *peer, const u8 *msg)
 		status_debug("Oh hi LND! Empty commitment at #%"PRIu64,
 			     peer->next_index[LOCAL]);
 		if (peer->last_empty_commitment == peer->next_index[LOCAL] - 1)
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "commit_sig with no changes (again!)");
+			peer_failed_warn(peer->pps, &peer->channel_id,
+					 "commit_sig with no changes (again!)");
 		peer->last_empty_commitment = peer->next_index[LOCAL];
 	}
 
@@ -1293,9 +1281,8 @@ static void handle_peer_commit_sig(struct peer *peer, const u8 *msg)
 
 	if (!fromwire_commitment_signed(tmpctx, msg,
 					&channel_id, &commit_sig.s, &raw_sigs))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad commit_sig %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad commit_sig %s", tal_hex(msg, msg));
 	/* SIGHASH_ALL is implied. */
 	commit_sig.sighash_type = SIGHASH_ALL;
 	htlc_sigs = unraw_sigs(tmpctx, raw_sigs,
@@ -1333,18 +1320,17 @@ static void handle_peer_commit_sig(struct peer *peer, const u8 *msg)
 	if (!check_tx_sig(txs[0], 0, NULL, funding_wscript,
 			  &peer->channel->funding_pubkey[REMOTE], &commit_sig)) {
 		dump_htlcs(peer->channel, "receiving commit_sig");
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad commit_sig signature %"PRIu64" %s for tx %s wscript %s key %s feerate %u",
-			    peer->next_index[LOCAL],
-			    type_to_string(msg, struct bitcoin_signature,
-					   &commit_sig),
-			    type_to_string(msg, struct bitcoin_tx, txs[0]),
-			    tal_hex(msg, funding_wscript),
-			    type_to_string(msg, struct pubkey,
-					   &peer->channel->funding_pubkey
-					   [REMOTE]),
-			    channel_feerate(peer->channel, LOCAL));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad commit_sig signature %"PRIu64" %s for tx %s wscript %s key %s feerate %u",
+				 peer->next_index[LOCAL],
+				 type_to_string(msg, struct bitcoin_signature,
+						&commit_sig),
+				 type_to_string(msg, struct bitcoin_tx, txs[0]),
+				 tal_hex(msg, funding_wscript),
+				 type_to_string(msg, struct pubkey,
+						&peer->channel->funding_pubkey
+						[REMOTE]),
+				 channel_feerate(peer->channel, LOCAL));
 	}
 
 	/* BOLT #2:
@@ -1356,10 +1342,9 @@ static void handle_peer_commit_sig(struct peer *peer, const u8 *msg)
 	 *      - MUST fail the channel.
 	 */
 	if (tal_count(htlc_sigs) != tal_count(txs) - 1)
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Expected %zu htlc sigs, not %zu",
-			    tal_count(txs) - 1, tal_count(htlc_sigs));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Expected %zu htlc sigs, not %zu",
+				 tal_count(txs) - 1, tal_count(htlc_sigs));
 
 	/* BOLT #2:
 	 *
@@ -1375,14 +1360,13 @@ static void handle_peer_commit_sig(struct peer *peer, const u8 *msg)
 
 		if (!check_tx_sig(txs[1+i], 0, NULL, wscript,
 				  &remote_htlckey, &htlc_sigs[i]))
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "Bad commit_sig signature %s for htlc %s wscript %s key %s",
-				    type_to_string(msg, struct bitcoin_signature, &htlc_sigs[i]),
-				    type_to_string(msg, struct bitcoin_tx, txs[1+i]),
-				    tal_hex(msg, wscript),
-				    type_to_string(msg, struct pubkey,
-						   &remote_htlckey));
+			peer_failed_warn(peer->pps, &peer->channel_id,
+					 "Bad commit_sig signature %s for htlc %s wscript %s key %s",
+					 type_to_string(msg, struct bitcoin_signature, &htlc_sigs[i]),
+					 type_to_string(msg, struct bitcoin_tx, txs[1+i]),
+					 tal_hex(msg, wscript),
+					 type_to_string(msg, struct pubkey,
+							&remote_htlckey));
 	}
 
 	status_debug("Received commit_sig with %zu htlc sigs",
@@ -1460,15 +1444,13 @@ static void handle_peer_revoke_and_ack(struct peer *peer, const u8 *msg)
 
 	if (!fromwire_revoke_and_ack(msg, &channel_id, &old_commit_secret,
 				     &next_per_commit)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad revoke_and_ack %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad revoke_and_ack %s", tal_hex(msg, msg));
 	}
 
 	if (peer->revocations_received != peer->next_index[REMOTE] - 2) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Unexpected revoke_and_ack");
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Unexpected revoke_and_ack");
 	}
 
 	/* BOLT #2:
@@ -1480,19 +1462,17 @@ static void handle_peer_revoke_and_ack(struct peer *peer, const u8 *msg)
 	 */
 	memcpy(&privkey, &old_commit_secret, sizeof(privkey));
 	if (!pubkey_from_privkey(&privkey, &per_commit_point)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad privkey %s",
-			    type_to_string(msg, struct privkey, &privkey));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad privkey %s",
+				 type_to_string(msg, struct privkey, &privkey));
 	}
 	if (!pubkey_eq(&per_commit_point, &peer->old_remote_per_commit)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Wrong privkey %s for %"PRIu64" %s",
-			    type_to_string(msg, struct privkey, &privkey),
-			    peer->next_index[LOCAL]-2,
-			    type_to_string(msg, struct pubkey,
-					   &peer->old_remote_per_commit));
+		peer_failed_err(peer->pps, &peer->channel_id,
+				"Wrong privkey %s for %"PRIu64" %s",
+				type_to_string(msg, struct privkey, &privkey),
+				peer->next_index[LOCAL]-2,
+				type_to_string(msg, struct pubkey,
+					       &peer->old_remote_per_commit));
 	}
 
 	/* We start timer even if this returns false: we might have delayed
@@ -1532,9 +1512,8 @@ static void handle_peer_fulfill_htlc(struct peer *peer, const u8 *msg)
 
 	if (!fromwire_update_fulfill_htlc(msg, &channel_id,
 					  &id, &preimage)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fulfill_htlc %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fulfill_htlc %s", tal_hex(msg, msg));
 	}
 
 	e = channel_fulfill_htlc(peer->channel, LOCAL, id, &preimage, &h);
@@ -1551,10 +1530,9 @@ static void handle_peer_fulfill_htlc(struct peer *peer, const u8 *msg)
 	case CHANNEL_ERR_HTLC_UNCOMMITTED:
 	case CHANNEL_ERR_HTLC_NOT_IRREVOCABLE:
 	case CHANNEL_ERR_BAD_PREIMAGE:
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fulfill_htlc: failed to fulfill %"
-			    PRIu64 " error %s", id, channel_remove_err_name(e));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fulfill_htlc: failed to fulfill %"
+				 PRIu64 " error %s", id, channel_remove_err_name(e));
 	}
 	abort();
 }
@@ -1571,9 +1549,8 @@ static void handle_peer_fail_htlc(struct peer *peer, const u8 *msg)
 	/* reason is not an onionreply because spec doesn't know about that */
 	if (!fromwire_update_fail_htlc(msg, msg,
 				       &channel_id, &id, &reason)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fail_htlc %s", tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fail_htlc %s", tal_hex(msg, msg));
 	}
 
 	e = channel_fail_htlc(peer->channel, LOCAL, id, &htlc);
@@ -1591,11 +1568,10 @@ static void handle_peer_fail_htlc(struct peer *peer, const u8 *msg)
 	case CHANNEL_ERR_HTLC_UNCOMMITTED:
 	case CHANNEL_ERR_HTLC_NOT_IRREVOCABLE:
 	case CHANNEL_ERR_BAD_PREIMAGE:
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fail_htlc: failed to remove %"
-			    PRIu64 " error %s", id,
-			    channel_remove_err_name(e));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fail_htlc: failed to remove %"
+				 PRIu64 " error %s", id,
+				 channel_remove_err_name(e));
 	}
 	abort();
 }
@@ -1613,10 +1589,9 @@ static void handle_peer_fail_malformed_htlc(struct peer *peer, const u8 *msg)
 	if (!fromwire_update_fail_malformed_htlc(msg, &channel_id, &id,
 						 &sha256_of_onion,
 						 &failure_code)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fail_malformed_htlc %s",
-			    tal_hex(msg, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fail_malformed_htlc %s",
+				 tal_hex(msg, msg));
 	}
 
 	/* BOLT #2:
@@ -1626,10 +1601,9 @@ static void handle_peer_fail_malformed_htlc(struct peer *peer, const u8 *msg)
 	 *      - MUST fail the channel.
 	 */
 	if (!(failure_code & BADONION)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fail_malformed_htlc failure code %u",
-			    failure_code);
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fail_malformed_htlc failure code %u",
+				 failure_code);
 	}
 
 	e = channel_fail_htlc(peer->channel, LOCAL, id, &htlc);
@@ -1647,10 +1621,9 @@ static void handle_peer_fail_malformed_htlc(struct peer *peer, const u8 *msg)
 	case CHANNEL_ERR_HTLC_UNCOMMITTED:
 	case CHANNEL_ERR_HTLC_NOT_IRREVOCABLE:
 	case CHANNEL_ERR_BAD_PREIMAGE:
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad update_fail_malformed_htlc: failed to remove %"
-			    PRIu64 " error %s", id, channel_remove_err_name(e));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad update_fail_malformed_htlc: failed to remove %"
+				 PRIu64 " error %s", id, channel_remove_err_name(e));
 	}
 	abort();
 }
@@ -1664,9 +1637,8 @@ static void handle_peer_shutdown(struct peer *peer, const u8 *shutdown)
 	send_channel_update(peer, ROUTING_FLAGS_DISABLED);
 
 	if (!fromwire_shutdown(tmpctx, shutdown, &channel_id, &scriptpubkey))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad shutdown %s", tal_hex(peer, shutdown));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad shutdown %s", tal_hex(peer, shutdown));
 
 	/* BOLT #2:
 	 *
@@ -1681,9 +1653,8 @@ static void handle_peer_shutdown(struct peer *peer, const u8 *shutdown)
 	    && !memeq(scriptpubkey, tal_count(scriptpubkey),
 		      peer->remote_upfront_shutdown_script,
 		      tal_count(peer->remote_upfront_shutdown_script)))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "scriptpubkey %s is not as agreed upfront (%s)",
+		peer_failed_err(peer->pps, &peer->channel_id,
+				"scriptpubkey %s is not as agreed upfront (%s)",
 			    tal_hex(peer, scriptpubkey),
 			    tal_hex(peer, peer->remote_upfront_shutdown_script));
 
@@ -1741,8 +1712,7 @@ static void handle_unexpected_tx_sigs(struct peer *peer, const u8 *msg)
 	 * but they did not receive our funding_locked. */
 	if (!fromwire_tx_signatures(tmpctx, msg, &cid, &txid,
 				    cast_const3(struct witness_stack ***, &ws)))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
+		peer_failed_warn(peer->pps, &peer->channel_id,
 			    "Bad tx_signatures %s",
 			    tal_hex(msg, msg));
 
@@ -1750,8 +1720,8 @@ static void handle_unexpected_tx_sigs(struct peer *peer, const u8 *msg)
 		    peer->tx_sigs_allowed ? "Allowing." : "Failing.");
 
 	if (!peer->tx_sigs_allowed)
-		peer_failed(peer->pps, &peer->channel_id,
-			    "Unexpected `tx_signatures`");
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Unexpected `tx_signatures`");
 
 	peer->tx_sigs_allowed = false;
 }
@@ -1770,9 +1740,8 @@ static void handle_unexpected_reestablish(struct peer *peer, const u8 *msg)
 					  &next_revocation_number,
 					  &your_last_per_commitment_secret,
 					  &my_current_per_commitment_point))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "Bad channel_reestablish %s", tal_hex(peer, msg));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "Bad channel_reestablish %s", tal_hex(peer, msg));
 
 	/* Is it the same as the peer channel ID?  */
 	if (channel_id_eq(&channel_id, &peer->channel_id)) {
@@ -1803,12 +1772,12 @@ static void handle_unexpected_reestablish(struct peer *peer, const u8 *msg)
 	 * peer getting its wires crossed somewhere.
 	 * Fail the channel they sent, not the channel we are actively
 	 * handling.  */
-	peer_failed(peer->pps, &channel_id,
-		    "Peer sent unexpected message %u, (%s) "
-		    "for nonexistent channel %s",
-		    WIRE_CHANNEL_REESTABLISH, "WIRE_CHANNEL_REESTABLISH",
-		    type_to_string(tmpctx, struct channel_id,
-				   &channel_id));
+	peer_failed_err(peer->pps, &channel_id,
+			"Peer sent unexpected message %u, (%s) "
+			"for nonexistent channel %s",
+			WIRE_CHANNEL_REESTABLISH, "WIRE_CHANNEL_REESTABLISH",
+			type_to_string(tmpctx, struct channel_id,
+				       &channel_id));
 }
 
 static void peer_in(struct peer *peer, const u8 *msg)
@@ -1848,10 +1817,9 @@ static void peer_in(struct peer *peer, const u8 *msg)
 		    /* lnd sends these early; it's harmless. */
 		    && type != WIRE_UPDATE_FEE
 		    && type != WIRE_ANNOUNCEMENT_SIGNATURES) {
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "%s (%u) before funding locked",
-				    peer_wire_name(type), type);
+			peer_failed_warn(peer->pps, &peer->channel_id,
+					 "%s (%u) before funding locked",
+					 peer_wire_name(type), type);
 		}
 	}
 
@@ -1934,10 +1902,9 @@ static void peer_in(struct peer *peer, const u8 *msg)
 		abort();
 	}
 
-	peer_failed(peer->pps,
-		    &peer->channel_id,
-		    "Peer sent unknown message %u (%s)",
-		    type, peer_wire_name(type));
+	peer_failed_warn(peer->pps, &peer->channel_id,
+			 "Peer sent unknown message %u (%s)",
+			 type, peer_wire_name(type));
 }
 
 static void resend_revoke(struct peer *peer)
@@ -1968,10 +1935,9 @@ static void send_fail_or_fulfill(struct peer *peer, const struct htlc *h)
 		msg = towire_update_fulfill_htlc(NULL, &peer->channel_id, h->id,
 						 h->r);
 	} else
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "HTLC %"PRIu64" state %s not failed/fulfilled",
-			    h->id, htlc_state_name(h->state));
+		peer_failed_warn(peer->pps, &peer->channel_id,
+				 "HTLC %"PRIu64" state %s not failed/fulfilled",
+				 h->id, htlc_state_name(h->state));
 	sync_crypto_write(peer->pps, take(msg));
 }
 
@@ -2029,10 +1995,9 @@ static void resend_commitment(struct peer *peer, struct changed_htlc *last)
 		/* I think this can happen if we actually received revoke_and_ack
 		 * then they asked for a retransmit */
 		if (!h)
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "Can't find HTLC %"PRIu64" to resend",
-				    last[i].id);
+			peer_failed_warn(peer->pps, &peer->channel_id,
+					 "Can't find HTLC %"PRIu64" to resend",
+					 last[i].id);
 
 		if (h->state == SENT_REMOVE_COMMIT)
 			send_fail_or_fulfill(peer, h);
@@ -2049,10 +2014,9 @@ static void resend_commitment(struct peer *peer, struct changed_htlc *last)
 		/* I think this can happen if we actually received revoke_and_ack
 		 * then they asked for a retransmit */
 		if (!h)
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "Can't find HTLC %"PRIu64" to resend",
-				    last[i].id);
+			peer_failed_warn(peer->pps, &peer->channel_id,
+					 "Can't find HTLC %"PRIu64" to resend",
+					 last[i].id);
 
 		if (h->state == SENT_ADD_COMMIT) {
 #if EXPERIMENTAL_FEATURES
@@ -2140,12 +2104,12 @@ static void check_future_dataloss_fields(struct peer *peer,
 			      tal_hex(tmpctx, msg));
 
 	if (!correct)
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "bad future last_local_per_commit_secret: %"PRIu64
-			    " vs %"PRIu64,
-			    next_revocation_number,
-			    peer->next_index[LOCAL] - 1);
+		peer_failed_err(peer->pps,
+				&peer->channel_id,
+				"bad future last_local_per_commit_secret: %"PRIu64
+				" vs %"PRIu64,
+				next_revocation_number,
+				peer->next_index[LOCAL] - 1);
 
 	/* Oh shit, they really are from the future! */
 	peer_billboard(true, "They have future commitment number %"PRIu64
@@ -2165,7 +2129,8 @@ static void check_future_dataloss_fields(struct peer *peer,
 				       remote_current_per_commitment_point)));
 
 	/* We have to send them an error to trigger dropping to chain. */
-	peer_failed(peer->pps, &peer->channel_id, "Awaiting unilateral close");
+	peer_failed_err(peer->pps, &peer->channel_id,
+			"Awaiting unilateral close");
 }
 
 /* BOLT #2:
@@ -2222,15 +2187,15 @@ static void check_current_dataloss_fields(struct peer *peer,
 
 	if (!secret_eq_consttime(&old_commit_secret,
 				 last_local_per_commit_secret))
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "bad reestablish: your_last_per_commitment_secret %"PRIu64
-			    ": %s should be %s",
-			    next_revocation_number,
-			    type_to_string(tmpctx, struct secret,
-					   last_local_per_commit_secret),
-			    type_to_string(tmpctx, struct secret,
-					   &old_commit_secret));
+		peer_failed_err(peer->pps,
+				&peer->channel_id,
+				"bad reestablish: your_last_per_commitment_secret %"PRIu64
+				": %s should be %s",
+				next_revocation_number,
+				type_to_string(tmpctx, struct secret,
+					       last_local_per_commit_secret),
+				type_to_string(tmpctx, struct secret,
+					       &old_commit_secret));
 
 	if (!remote_current_per_commitment_point) {
 		status_debug("option_static_remotekey: fields are correct");
@@ -2248,35 +2213,35 @@ static void check_current_dataloss_fields(struct peer *peer,
 	if (next_commitment_number == peer->revocations_received + 1) {
 		if (!pubkey_eq(remote_current_per_commitment_point,
 				&peer->old_remote_per_commit)) {
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "bad reestablish: remote's "
-				    "my_current_per_commitment_point %"PRIu64
-				    "is %s; expected %s (new is %s).",
-				    next_commitment_number - 1,
-				    type_to_string(tmpctx, struct pubkey,
-						   remote_current_per_commitment_point),
-				    type_to_string(tmpctx, struct pubkey,
-						   &peer->old_remote_per_commit),
-				    type_to_string(tmpctx, struct pubkey,
-						   &peer->remote_per_commit));
+			peer_failed_warn(peer->pps,
+					&peer->channel_id,
+					"bad reestablish: remote's "
+					"my_current_per_commitment_point %"PRIu64
+					"is %s; expected %s (new is %s).",
+					next_commitment_number - 1,
+					type_to_string(tmpctx, struct pubkey,
+						       remote_current_per_commitment_point),
+					 type_to_string(tmpctx, struct pubkey,
+							&peer->old_remote_per_commit),
+					 type_to_string(tmpctx, struct pubkey,
+							&peer->remote_per_commit));
 		}
 	} else {
 		/* We've sent a commit sig but haven't gotten a revoke+ack back */
 		if (!pubkey_eq(remote_current_per_commitment_point,
 				&peer->remote_per_commit)) {
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "bad reestablish: remote's "
-				    "my_current_per_commitment_point %"PRIu64
-				    "is %s; expected %s (old is %s).",
-				    next_commitment_number - 1,
-				    type_to_string(tmpctx, struct pubkey,
-						   remote_current_per_commitment_point),
-				    type_to_string(tmpctx, struct pubkey,
-						   &peer->remote_per_commit),
-				    type_to_string(tmpctx, struct pubkey,
-						   &peer->old_remote_per_commit));
+			peer_failed_warn(peer->pps,
+					 &peer->channel_id,
+					 "bad reestablish: remote's "
+					 "my_current_per_commitment_point %"PRIu64
+					 "is %s; expected %s (old is %s).",
+					 next_commitment_number - 1,
+					 type_to_string(tmpctx, struct pubkey,
+							remote_current_per_commitment_point),
+					 type_to_string(tmpctx, struct pubkey,
+							&peer->remote_per_commit),
+					 type_to_string(tmpctx, struct pubkey,
+							&peer->old_remote_per_commit));
 		}
 	}
 
@@ -2400,11 +2365,11 @@ static void peer_reconnect(struct peer *peer,
 					&next_revocation_number,
 					&last_local_per_commitment_secret,
 					&remote_current_per_commitment_point)) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "bad reestablish msg: %s %s",
-			    peer_wire_name(fromwire_peektype(msg)),
-			    tal_hex(msg, msg));
+		peer_failed_warn(peer->pps,
+				 &peer->channel_id,
+				 "bad reestablish msg: %s %s",
+				 peer_wire_name(fromwire_peektype(msg)),
+				 tal_hex(msg, msg));
 	}
 
 	status_debug("Got reestablish commit=%"PRIu64" revoke=%"PRIu64,
@@ -2455,31 +2420,31 @@ static void peer_reconnect(struct peer *peer,
 	if (next_revocation_number == peer->next_index[LOCAL] - 2) {
 		/* Don't try to retransmit revocation index -1! */
 		if (peer->next_index[LOCAL] < 2) {
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "bad reestablish revocation_number: %"
-				    PRIu64,
-				    next_revocation_number);
+			peer_failed_err(peer->pps,
+					&peer->channel_id,
+					"bad reestablish revocation_number: %"
+					PRIu64,
+					next_revocation_number);
 		}
 		retransmit_revoke_and_ack = true;
 	} else if (next_revocation_number < peer->next_index[LOCAL] - 1) {
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "bad reestablish revocation_number: %"PRIu64
-			    " vs %"PRIu64,
-			    next_revocation_number,
-			    peer->next_index[LOCAL]);
+		peer_failed_err(peer->pps,
+				&peer->channel_id,
+				"bad reestablish revocation_number: %"PRIu64
+				" vs %"PRIu64,
+				next_revocation_number,
+				peer->next_index[LOCAL]);
 	} else if (next_revocation_number > peer->next_index[LOCAL] - 1) {
 		if (!check_extra_fields)
 			/* They don't support option_data_loss_protect or
 			 * option_static_remotekey, we fail it due to
 			 * unexpected number */
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "bad reestablish revocation_number: %"PRIu64
-				    " vs %"PRIu64,
-				    next_revocation_number,
-				    peer->next_index[LOCAL] - 1);
+			peer_failed_err(peer->pps,
+					&peer->channel_id,
+					"bad reestablish revocation_number: %"PRIu64
+					" vs %"PRIu64,
+					next_revocation_number,
+					peer->next_index[LOCAL] - 1);
 
 		/* Remote claims it's ahead of us: can it prove it?
 		 * Does not return. */
@@ -2502,11 +2467,11 @@ static void peer_reconnect(struct peer *peer,
 	if (next_commitment_number == peer->next_index[REMOTE] - 1) {
 		/* We completed opening, we don't re-transmit that one! */
 		if (next_commitment_number == 0)
-			peer_failed(peer->pps,
-				    &peer->channel_id,
-				    "bad reestablish commitment_number: %"
-				    PRIu64,
-				    next_commitment_number);
+			peer_failed_err(peer->pps,
+					 &peer->channel_id,
+					 "bad reestablish commitment_number: %"
+					 PRIu64,
+					 next_commitment_number);
 
 		retransmit_commitment_signed = true;
 
@@ -2519,12 +2484,12 @@ static void peer_reconnect(struct peer *peer,
 	 *       - SHOULD fail the channel.
 	 */
 	} else if (next_commitment_number != peer->next_index[REMOTE])
-		peer_failed(peer->pps,
-			    &peer->channel_id,
-			    "bad reestablish commitment_number: %"PRIu64
-			    " vs %"PRIu64,
-			    next_commitment_number,
-			    peer->next_index[REMOTE]);
+		peer_failed_err(peer->pps,
+				&peer->channel_id,
+				"bad reestablish commitment_number: %"PRIu64
+				" vs %"PRIu64,
+				next_commitment_number,
+				peer->next_index[REMOTE]);
 	else
 		retransmit_commitment_signed = false;
 
diff --git a/closingd/closingd.c b/closingd/closingd.c
index 517481cb2..a090e574e 100644
--- a/closingd/closingd.c
+++ b/closingd/closingd.c
@@ -51,13 +51,13 @@ static struct bitcoin_tx *close_tx(const tal_t *ctx,
 	out_minus_fee[LOCAL] = out[LOCAL];
 	out_minus_fee[REMOTE] = out[REMOTE];
 	if (!amount_sat_sub(&out_minus_fee[opener], out[opener], fee))
-		peer_failed(pps, channel_id,
-			    "Funder cannot afford fee %s (%s and %s)",
-			    type_to_string(tmpctx, struct amount_sat, &fee),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &out[LOCAL]),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &out[REMOTE]));
+		peer_failed_warn(pps, channel_id,
+				 "Funder cannot afford fee %s (%s and %s)",
+				 type_to_string(tmpctx, struct amount_sat, &fee),
+				 type_to_string(tmpctx, struct amount_sat,
+						&out[LOCAL]),
+				 type_to_string(tmpctx, struct amount_sat,
+						&out[REMOTE]));
 
 	status_debug("Making close tx at = %s/%s fee %s",
 		     type_to_string(tmpctx, struct amount_sat, &out[LOCAL]),
@@ -76,18 +76,18 @@ static struct bitcoin_tx *close_tx(const tal_t *ctx,
 			     out_minus_fee[REMOTE],
 			     dust_limit);
 	if (!tx)
-		peer_failed(pps, channel_id,
-			    "Both outputs below dust limit:"
-			    " funding = %s"
-			    " fee = %s"
-			    " dust_limit = %s"
-			    " LOCAL = %s"
-			    " REMOTE = %s",
-			    type_to_string(tmpctx, struct amount_sat, &funding),
-			    type_to_string(tmpctx, struct amount_sat, &fee),
-			    type_to_string(tmpctx, struct amount_sat, &dust_limit),
-			    type_to_string(tmpctx, struct amount_sat, &out[LOCAL]),
-			    type_to_string(tmpctx, struct amount_sat, &out[REMOTE]));
+		peer_failed_err(pps, channel_id,
+				"Both outputs below dust limit:"
+				" funding = %s"
+				" fee = %s"
+				" dust_limit = %s"
+				" LOCAL = %s"
+				" REMOTE = %s",
+				type_to_string(tmpctx, struct amount_sat, &funding),
+				type_to_string(tmpctx, struct amount_sat, &fee),
+				type_to_string(tmpctx, struct amount_sat, &dust_limit),
+				type_to_string(tmpctx, struct amount_sat, &out[LOCAL]),
+				type_to_string(tmpctx, struct amount_sat, &out[REMOTE]));
 	return tx;
 }
 
@@ -201,10 +201,10 @@ static void do_reconnect(struct per_peer_state *pps,
 					  &next_remote_revocation_number,
 					  &their_secret,
 					  &next_commitment_point)) {
-		peer_failed(pps, channel_id,
-			    "bad reestablish msg: %s %s",
-			    peer_wire_name(fromwire_peektype(channel_reestablish)),
-			    tal_hex(tmpctx, channel_reestablish));
+		peer_failed_warn(pps, channel_id,
+				 "bad reestablish msg: %s %s",
+				 peer_wire_name(fromwire_peektype(channel_reestablish)),
+				 tal_hex(tmpctx, channel_reestablish));
 	}
 	status_debug("Got reestablish commit=%"PRIu64" revoke=%"PRIu64,
 		     next_local_commitment_number,
@@ -360,9 +360,9 @@ receive_offer(struct per_peer_state *pps,
 	their_sig.sighash_type = SIGHASH_ALL;
 	if (!fromwire_closing_signed(msg, &their_channel_id,
 				     &received_fee, &their_sig.s))
-		peer_failed(pps, channel_id,
-			    "Expected closing_signed: %s",
-			    tal_hex(tmpctx, msg));
+		peer_failed_warn(pps, channel_id,
+				 "Expected closing_signed: %s",
+				 tal_hex(tmpctx, msg));
 
 	/* BOLT #2:
 	 *
@@ -412,17 +412,17 @@ receive_offer(struct per_peer_state *pps,
 		if (!trimmed
 		    || !check_tx_sig(trimmed, 0, NULL, funding_wscript,
 				     &funding_pubkey[REMOTE], &their_sig)) {
-			peer_failed(pps, channel_id,
-				    "Bad closing_signed signature for"
-				    " %s (and trimmed version %s)",
-				    type_to_string(tmpctx,
-						   struct bitcoin_tx,
-						   tx),
-				    trimmed ?
-				    type_to_string(tmpctx,
-						   struct bitcoin_tx,
-						   trimmed)
-				    : "NONE");
+			peer_failed_warn(pps, channel_id,
+					 "Bad closing_signed signature for"
+					 " %s (and trimmed version %s)",
+					 type_to_string(tmpctx,
+							struct bitcoin_tx,
+							tx),
+					 trimmed ?
+					 type_to_string(tmpctx,
+							struct bitcoin_tx,
+							trimmed)
+					 : "NONE");
 		}
 		tx = trimmed;
 	}
@@ -507,10 +507,10 @@ adjust_offer(struct per_peer_state *pps, const struct channel_id *channel_id,
 
 	/* Within 1 satoshi?  Agree. */
 	if (!amount_sat_add(&min_plus_one, feerange->min, AMOUNT_SAT(1)))
-		peer_failed(pps, channel_id,
-			    "Fee offer %s min too large",
-			    type_to_string(tmpctx, struct amount_sat,
-					   &feerange->min));
+		peer_failed_warn(pps, channel_id,
+				 "Fee offer %s min too large",
+				 type_to_string(tmpctx, struct amount_sat,
+						&feerange->min));
 
 	if (amount_sat_greater_eq(min_plus_one, feerange->max))
 		return remote_offer;
@@ -524,15 +524,15 @@ adjust_offer(struct per_peer_state *pps, const struct channel_id *channel_id,
 
 	/* Max is below our minimum acceptable? */
 	if (!amount_sat_sub(&range_len, feerange->max, min_fee_to_accept))
-		peer_failed(pps, channel_id,
-			    "Feerange %s-%s"
-			    " below minimum acceptable %s",
-			    type_to_string(tmpctx, struct amount_sat,
-					   &feerange->min),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &feerange->max),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &min_fee_to_accept));
+		peer_failed_warn(pps, channel_id,
+				 "Feerange %s-%s"
+				 " below minimum acceptable %s",
+				 type_to_string(tmpctx, struct amount_sat,
+						&feerange->min),
+				 type_to_string(tmpctx, struct amount_sat,
+						&feerange->max),
+				 type_to_string(tmpctx, struct amount_sat,
+						&min_fee_to_accept));
 
 	if (fee_negotiation_step_unit ==
 	    CLOSING_FEE_NEGOTIATION_STEP_UNIT_SATOSHI) {
diff --git a/common/peer_failed.c b/common/peer_failed.c
index 336fb094b..e0b4ffde1 100644
--- a/common/peer_failed.c
+++ b/common/peer_failed.c
@@ -1,3 +1,4 @@
+#include <assert.h>
 #include <ccan/breakpoint/breakpoint.h>
 #include <ccan/tal/str/str.h>
 #include <common/crypto_sync.h>
@@ -24,34 +25,59 @@ peer_fatal_continue(const u8 *msg TAKES, const struct per_peer_state *pps)
 }
 
 /* We only support one channel per peer anyway */
-void peer_failed(struct per_peer_state *pps,
-		 const struct channel_id *channel_id,
-		 const char *fmt, ...)
+static void NORETURN
+peer_failed(struct per_peer_state *pps,
+	    bool warn,
+	    const struct channel_id *channel_id,
+	    const char *desc)
 {
-	va_list ap;
-	const char *desc;
-	u8 *msg, *err;
-
- 	va_start(ap, fmt);
-	desc = tal_vfmt(NULL, fmt, ap);
-	va_end(ap);
+	u8 *msg;
 
-	/* Tell peer the error. */
-	err = towire_errorfmt(desc, channel_id, "%s", desc);
-	sync_crypto_write(pps, err);
+	if (warn) {
+		msg = towire_warningfmt(desc, channel_id, "%s", desc);
+	} else {
+		msg = towire_errorfmt(desc, channel_id, "%s", desc);
+	}
+	sync_crypto_write(pps, msg);
 
 	/* Tell master the error so it can re-xmit. */
 	msg = towire_status_peer_error(NULL, channel_id,
 				       desc,
-				       /* all-channels errors should not close channels */
-				       channel_id_is_all(channel_id),
+				       warn,
 				       pps,
-				       err);
+				       msg);
 	peer_billboard(true, desc);
-	tal_free(desc);
 	peer_fatal_continue(take(msg), pps);
 }
 
+void peer_failed_warn(struct per_peer_state *pps,
+		      const struct channel_id *channel_id,
+		      const char *fmt, ...)
+{
+	va_list ap;
+	const char *desc;
+
+ 	va_start(ap, fmt);
+	desc = tal_vfmt(tmpctx, fmt, ap);
+	va_end(ap);
+
+	peer_failed(pps, true, channel_id, desc);
+}
+
+void peer_failed_err(struct per_peer_state *pps,
+		     const struct channel_id *channel_id,
+		     const char *fmt, ...)
+{
+	va_list ap;
+	const char *desc;
+
+ 	va_start(ap, fmt);
+	desc = tal_vfmt(tmpctx, fmt, ap);
+	va_end(ap);
+
+	peer_failed(pps, false, channel_id, desc);
+}
+
 /* We're failing because peer sent us an error/warning message */
 void peer_failed_received_errmsg(struct per_peer_state *pps,
 				 const char *desc,
diff --git a/common/peer_failed.h b/common/peer_failed.h
index cf5da6cf9..51fc8a7fa 100644
--- a/common/peer_failed.h
+++ b/common/peer_failed.h
@@ -8,14 +8,25 @@ struct channel_id;
 struct per_peer_state;
 
 /**
- * peer_failed - Exit with error for peer.
+ * peer_failed_warn - Send a warning msg and close the connection.
  * @pps: the per-peer state.
- * @channel_id: channel with error, or NULL for all.
+ * @channel_id: channel with error, or NULL for no particular channel.
  * @fmt...: format as per status_failed(STATUS_FAIL_PEER_BAD)
  */
-void peer_failed(struct per_peer_state *pps,
-		 const struct channel_id *channel_id,
-		 const char *fmt, ...)
+void peer_failed_warn(struct per_peer_state *pps,
+		      const struct channel_id *channel_id,
+		      const char *fmt, ...)
+	PRINTF_FMT(3,4) NORETURN;
+
+/**
+ * peer_failed_err - Send a warning msg and close the channel.
+ * @pps: the per-peer state.
+ * @channel_id: channel with error.
+ * @fmt...: format as per status_failed(STATUS_FAIL_PEER_BAD)
+ */
+void peer_failed_err(struct per_peer_state *pps,
+		     const struct channel_id *channel_id,
+		     const char *fmt, ...)
 	PRINTF_FMT(3,4) NORETURN;
 
 /* We're failing because peer sent us an error message: NULL
diff --git a/openingd/dualopend.c b/openingd/dualopend.c
index 1a7a66023..550a618d7 100644
--- a/openingd/dualopend.c
+++ b/openingd/dualopend.c
@@ -341,18 +341,18 @@ static void handle_peer_shutdown(struct state *state, u8 *msg)
 	struct channel_id cid;
 
 	if (!fromwire_shutdown(tmpctx, msg, &cid, &scriptpubkey))
-		peer_failed(state->pps, &state->channel_id,
+		peer_failed_warn(state->pps, &state->channel_id,
 			    "Bad shutdown %s", tal_hex(msg, msg));
 
 	if (tal_count(state->upfront_shutdown_script[REMOTE])
 	    && !memeq(scriptpubkey, tal_count(scriptpubkey),
 		      state->upfront_shutdown_script[REMOTE],
 		      tal_count(state->upfront_shutdown_script[REMOTE])))
-		peer_failed(state->pps, &state->channel_id,
-			    "scriptpubkey %s is not as agreed upfront (%s)",
-			    tal_hex(state, scriptpubkey),
-			    tal_hex(state,
-				    state->upfront_shutdown_script[REMOTE]));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "scriptpubkey %s is not as agreed upfront (%s)",
+				 tal_hex(state, scriptpubkey),
+				 tal_hex(state,
+					 state->upfront_shutdown_script[REMOTE]));
 
 	wire_sync_write(REQ_FD,
 			take(towire_dualopend_got_shutdown(NULL,
@@ -391,10 +391,10 @@ static void check_channel_id(struct state *state,
 	 * the `temporary_channel_id` in the `open_channel` message.
 	 */
 	if (!channel_id_eq(id_in, orig_id))
-		peer_failed(state->pps,	id_in,
-			    "channel ids don't match. expected %s, got %s",
-			    type_to_string(tmpctx, struct channel_id, orig_id),
-			    type_to_string(tmpctx, struct channel_id, id_in));
+		peer_failed_err(state->pps, id_in,
+				"channel ids don't match. expected %s, got %s",
+				type_to_string(tmpctx, struct channel_id, orig_id),
+				type_to_string(tmpctx, struct channel_id, id_in));
 }
 
 static void set_reserve(struct state *state, struct amount_sat funding_total)
@@ -778,10 +778,9 @@ static void handle_tx_sigs(struct state *state, const u8 *msg)
 				    cast_const3(
 					 struct witness_stack ***,
 					 &ws)))
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Bad tx_signatures %s",
-			    tal_hex(msg, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Bad tx_signatures %s",
+				 tal_hex(msg, msg));
 
 	/* Maybe they didn't get our funding_locked message ? */
 	if (state->funding_locked[LOCAL] && !state->reconnected) {
@@ -796,10 +795,9 @@ static void handle_tx_sigs(struct state *state, const u8 *msg)
 	/* On reconnect, we expect them to resend tx_sigs if they haven't
 	 * gotten our funding_locked yet */
 	if (state->funding_locked[REMOTE] && !state->reconnected)
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "tx_signatures sent after funding_locked %s",
-			    tal_hex(msg, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "tx_signatures sent after funding_locked %s",
+				 tal_hex(msg, msg));
 
 	if (state->remote_funding_sigs_rcvd) {
 		status_info("Got duplicate WIRE_TX_SIGNATURES, "
@@ -825,9 +823,10 @@ static void handle_tx_sigs(struct state *state, const u8 *msg)
 			continue;
 
 		if (j == tal_count(ws))
-			peer_failed(state->pps, &state->channel_id,
-				    "Mismatch witness stack count %s",
-				    tal_hex(msg, msg));
+			peer_failed_warn(state->pps,
+					 &state->channel_id,
+					 "Mismatch witness stack count %s",
+					 tal_hex(msg, msg));
 
 		elem = cast_const2(const struct witness_element **,
 				   ws[j++]->witness_element);
@@ -929,8 +928,8 @@ static bool send_next(struct state *state, struct wally_psbt **psbt)
 
 	/* We should always get a updated psbt back */
 	if (!updated_psbt)
-		peer_failed(state->pps, &state->channel_id,
-			    "Unable to determine next tx update");
+		peer_failed_err(state->pps, &state->channel_id,
+				"Unable to determine next tx update");
 
 	state->changeset = tal_free(state->changeset);
 	state->changeset = psbt_get_changeset(state, *psbt, updated_psbt);
@@ -1096,9 +1095,9 @@ static bool run_tx_interactive(struct state *state,
 						   cast_const2(u8 **,
 							       &redeemscript),
 						   add_tlvs))
-				peer_failed(state->pps, &state->channel_id,
-					    "Parsing tx_add_input %s",
-					    tal_hex(tmpctx, msg));
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Parsing tx_add_input %s",
+						 tal_hex(tmpctx, msg));
 
 			check_channel_id(state, &cid, &state->channel_id);
 
@@ -1109,9 +1108,9 @@ static bool run_tx_interactive(struct state *state,
 			 *   - it receives more than 2^12 `tx_add_input`
 			 *   messages */
 			if (++state->tx_msg_count[TX_ADD_INPUT] > MAX_TX_MSG_RCVD)
-				peer_failed(state->pps, &state->channel_id,
-					    "Too many `tx_add_input`s"
-					    " received");
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Too many `tx_add_input`s"
+						 " received");
 			/*
 			 * BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2:
 			 * - if is the `initiator`:
@@ -1122,9 +1121,9 @@ static bool run_tx_interactive(struct state *state,
 			 *   with the incorrect parity
 			 */
 			if (serial_id % 2 == our_role)
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid serial_id rcvd. %"PRIu64,
-					    serial_id);
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Invalid serial_id rcvd. %"PRIu64,
+						 serial_id);
 			/*
 			 * BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2:
 			 * - MUST fail the transaction collaboration if:
@@ -1132,20 +1131,20 @@ static bool run_tx_interactive(struct state *state,
 			 *  - it recieves a duplicate `serial_id`
 			 */
 			if (psbt_find_serial_input(psbt, serial_id) != -1)
-				peer_failed(state->pps, &state->channel_id,
-					    "Duplicate serial_id rcvd."
-					    " %"PRIu64, serial_id);
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Duplicate serial_id rcvd."
+						 " %"PRIu64, serial_id);
 
 			/* Convert tx_bytes to a tx! */
 			len = tal_bytelen(tx_bytes);
 			tx = pull_bitcoin_tx(state, &tx_bytes, &len);
 			if (!tx || len != 0)
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid tx sent.");
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Invalid tx sent.");
 
 			if (outnum >= tx->wtx->num_outputs)
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid tx outnum sent. %u", outnum);
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Invalid tx outnum sent. %u", outnum);
 			/*
 			 * BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2:
 			 * - MUST fail the transaction collaboration if:
@@ -1155,11 +1154,11 @@ static bool run_tx_interactive(struct state *state,
 			 */
 			if (!is_segwit_output(&tx->wtx->outputs[outnum],
 					      redeemscript))
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid tx sent. Not SegWit %s",
-					    type_to_string(tmpctx,
-							   struct bitcoin_tx,
-							   tx));
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Invalid tx sent. Not SegWit %s",
+						 type_to_string(tmpctx,
+								struct bitcoin_tx,
+								tx));
 
 			/*
 			 * BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2:
@@ -1173,9 +1172,10 @@ static bool run_tx_interactive(struct state *state,
 			 */
 			bitcoin_txid(tx, &txid);
 			if (psbt_has_input(psbt, &txid, outnum))
-				peer_failed(state->pps, &state->channel_id,
-					    "Unable to add input - "
-					    "already present");
+				peer_failed_warn(state->pps,
+						 &state->channel_id,
+						 "Unable to add input - "
+						 "already present");
 
 			/*
 			 * BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2:
@@ -1189,8 +1189,8 @@ static bool run_tx_interactive(struct state *state,
 						  NULL,
 						  redeemscript);
 			if (!in)
-				peer_failed(state->pps, &state->channel_id,
-					    "Unable to add input");
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Unable to add input");
 
 			tal_wally_start();
 			wally_psbt_input_set_utxo(in, tx->wtx);
@@ -1220,9 +1220,9 @@ static bool run_tx_interactive(struct state *state,
 			int input_index;
 
 			if (!fromwire_tx_remove_input(msg, &cid, &serial_id))
-				peer_failed(state->pps, &state->channel_id,
-					    "Parsing tx_remove_input %s",
-					    tal_hex(tmpctx, msg));
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Parsing tx_remove_input %s",
+						 tal_hex(tmpctx, msg));
 
 			check_channel_id(state, &cid, &state->channel_id);
 
@@ -1233,24 +1233,24 @@ static bool run_tx_interactive(struct state *state,
 			 *   - it receives more than 2^12 `tx_rm_input`
 			 *   messages */
 			if (++state->tx_msg_count[TX_RM_INPUT] > MAX_TX_MSG_RCVD)
-				peer_failed(state->pps, &state->channel_id,
-					    "Too many `tx_rm_input`s"
-					    " received");
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Too many `tx_rm_input`s"
+						 " received");
 
 			/* BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2
 			 * The sending node:
 			 *   - MUST NOT send a `tx_remove_input` for an
 			 *     input which is not theirs */
 			if (serial_id % 2 == our_role)
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid serial_id rcvd. %"PRIu64,
-					    serial_id);
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Invalid serial_id rcvd. %"PRIu64,
+						 serial_id);
 
 			input_index = psbt_find_serial_input(psbt, serial_id);
 			if (input_index == -1)
-				peer_failed(state->pps, &state->channel_id,
-					    "No input added with serial_id"
-					    " %"PRIu64, serial_id);
+				peer_failed_err(state->pps, &state->channel_id,
+						"No input added with serial_id"
+						" %"PRIu64, serial_id);
 
 			psbt_rm_input(psbt, input_index);
 			break;
@@ -1263,9 +1263,10 @@ static bool run_tx_interactive(struct state *state,
 			if (!fromwire_tx_add_output(tmpctx, msg, &cid,
 						    &serial_id, &value,
 						    &scriptpubkey))
-				peer_failed(state->pps, &state->channel_id,
-					    "Parsing tx_add_output %s",
-					    tal_hex(tmpctx, msg));
+				peer_failed_warn(state->pps,
+						 &state->channel_id,
+						 "Parsing tx_add_output %s",
+						 tal_hex(tmpctx, msg));
 			check_channel_id(state, &cid, &state->channel_id);
 
 			/*
@@ -1275,9 +1276,9 @@ static bool run_tx_interactive(struct state *state,
 			 *   - it receives more than 2^12 `tx_add_output`
 			 *   messages */
 			if (++state->tx_msg_count[TX_ADD_OUTPUT] > MAX_TX_MSG_RCVD)
-				peer_failed(state->pps, &state->channel_id,
-					    "Too many `tx_add_output`s"
-					    " received");
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Too many `tx_add_output`s"
+						 " received");
 
 			/* BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2
 			 * The receiving node:
@@ -1287,14 +1288,14 @@ static bool run_tx_interactive(struct state *state,
 			 *   - it receives a `serial_id` from the peer with the
 			 *      incorrect parity */
 			if (serial_id % 2 == our_role)
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid serial_id rcvd. %"PRIu64,
-					    serial_id);
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Invalid serial_id rcvd. %"PRIu64,
+						 serial_id);
 
 			if (psbt_find_serial_output(psbt, serial_id) != -1)
-				peer_failed(state->pps, &state->channel_id,
-					    "Duplicate serial_id rcvd."
-					    " %"PRIu64, serial_id);
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Duplicate serial_id rcvd."
+						 " %"PRIu64, serial_id);
 			amt = amount_sat(value);
 			out = psbt_append_output(psbt, scriptpubkey, amt);
 			psbt_output_set_serial_id(psbt, out, serial_id);
@@ -1304,9 +1305,9 @@ static bool run_tx_interactive(struct state *state,
 			int output_index;
 
 			if (!fromwire_tx_remove_output(msg, &cid, &serial_id))
-				peer_failed(state->pps, &state->channel_id,
-					    "Parsing tx_remove_output %s",
-					    tal_hex(tmpctx, msg));
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Parsing tx_remove_output %s",
+						 tal_hex(tmpctx, msg));
 
 			check_channel_id(state, &cid, &state->channel_id);
 
@@ -1317,32 +1318,35 @@ static bool run_tx_interactive(struct state *state,
 			 *   - it receives more than 2^12 `tx_rm_output`
 			 *   messages */
 			if (++state->tx_msg_count[TX_RM_OUTPUT] > MAX_TX_MSG_RCVD)
-				peer_failed(state->pps, &state->channel_id,
-					    "Too many `tx_rm_output`s"
-					    " received");
+				peer_failed_warn(state->pps, &state->channel_id,
+						 "Too many `tx_rm_output`s"
+						 " received");
 
 			/* BOLT-fe0351ca2cea3105c4f2eb18c571afca9d21c85b #2
 			 * The sending node:
 			 *   - MUST NOT send a `tx_remove_ouput` for an
 			 *     input which is not theirs */
 			if (serial_id % 2 == our_role)
-				peer_failed(state->pps, &state->channel_id,
-					    "Invalid serial_id rcvd."
-					    " %"PRIu64, serial_id);
+				peer_failed_warn(state->pps,
+						 &state->channel_id,
+						 "Invalid serial_id rcvd."
+						 " %"PRIu64, serial_id);
 
 			output_index = psbt_find_serial_output(psbt, serial_id);
 			if (output_index == -1)
-				peer_failed(state->pps, &state->channel_id,
-					    "No output added with serial_id"
-					    " %"PRIu64, serial_id);
+				peer_failed_warn(state->pps,
+						 &state->channel_id,
+						 "No output added with serial_id"
+						 " %"PRIu64, serial_id);
 			psbt_rm_output(psbt, output_index);
 			break;
 		}
 		case WIRE_TX_COMPLETE:
 			if (!fromwire_tx_complete(msg, &cid))
-				peer_failed(state->pps, &state->channel_id,
-					    "Parsing tx_complete %s",
-					    tal_hex(tmpctx, msg));
+				peer_failed_warn(state->pps,
+						 &state->channel_id,
+						 "Parsing tx_complete %s",
+						 tal_hex(tmpctx, msg));
 			check_channel_id(state, &cid, &state->channel_id);
 			they_complete = true;
 			break;
@@ -1381,9 +1385,9 @@ static bool run_tx_interactive(struct state *state,
 		case WIRE_REPLY_SHORT_CHANNEL_IDS_END:
 		case WIRE_PING:
 		case WIRE_PONG:
-			peer_failed(state->pps, &state->channel_id,
-				    "Unexpected wire message %s",
-				     tal_hex(tmpctx, msg));
+			peer_failed_warn(state->pps, &state->channel_id,
+					 "Unexpected wire message %s",
+					 tal_hex(tmpctx, msg));
 			return false;
 		}
 
@@ -1443,9 +1447,9 @@ static void accepter_start(struct state *state, const u8 *oc2_msg)
 				    &state->first_per_commitment_point[REMOTE],
 				    &channel_flags,
 				    open_tlv))
-		peer_failed(state->pps, &state->channel_id,
-			    "Parsing open_channel2 %s",
-			    tal_hex(tmpctx, oc2_msg));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Parsing open_channel2 %s",
+				tal_hex(tmpctx, oc2_msg));
 
 	if (open_tlv->option_upfront_shutdown_script) {
 		state->upfront_shutdown_script[REMOTE] = tal_steal(state,
@@ -1533,13 +1537,13 @@ static void accepter_start(struct state *state, const u8 *oc2_msg)
 	/* Check that total funding doesn't overflow */
 	if (!amount_sat_add(&total, state->opener_funding,
 			    state->accepter_funding))
-		peer_failed(state->pps, &state->channel_id,
-			    "Amount overflow. Local sats %s. "
-			    "Remote sats %s",
-			    type_to_string(tmpctx, struct amount_sat,
-					   &state->accepter_funding),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &state->opener_funding));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Amount overflow. Local sats %s. "
+				"Remote sats %s",
+				type_to_string(tmpctx, struct amount_sat,
+					       &state->accepter_funding),
+				type_to_string(tmpctx, struct amount_sat,
+					       &state->opener_funding));
 
 	/* Check that total funding doesn't exceed allowed channel capacity */
 	/* BOLT #2:
@@ -1634,11 +1638,11 @@ static void accepter_start(struct state *state, const u8 *oc2_msg)
 	if (!find_txout(state->psbt,
 			scriptpubkey_p2wsh(tmpctx, wscript),
 			&state->funding_txout))
-		peer_failed(state->pps, &state->channel_id,
-			    "Expected output %s not found on funding tx %s",
-			    tal_hex(tmpctx, scriptpubkey_p2wsh(tmpctx, wscript)),
-			    type_to_string(tmpctx, struct wally_psbt,
-					   state->psbt));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Expected output %s not found on funding tx %s",
+				tal_hex(tmpctx, scriptpubkey_p2wsh(tmpctx, wscript)),
+				type_to_string(tmpctx, struct wally_psbt,
+					       state->psbt));
 
 	/* Check tx funds are sane */
 	err_reason = check_balances(tmpctx, state,
@@ -1661,17 +1665,17 @@ static void accepter_start(struct state *state, const u8 *oc2_msg)
 	if (!fromwire_commitment_signed(tmpctx, msg, &cid,
 					&remote_sig.s,
 					&htlc_sigs))
-		peer_failed(state->pps, &state->channel_id,
-			    "Parsing commitment signed %s",
-			    tal_hex(tmpctx, msg));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Parsing commitment signed %s",
+				tal_hex(tmpctx, msg));
 
 	check_channel_id(state, &cid, &state->channel_id);
 
 	if (htlc_sigs != NULL)
-		peer_failed(state->pps, &state->channel_id,
-			    "Must not send HTLCs with first"
-			     " commitment. %s",
-			     tal_hex(tmpctx, msg));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Must not send HTLCs with first"
+				" commitment. %s",
+				tal_hex(tmpctx, msg));
 
 	if (!amount_sat_to_msat(&our_msats, state->accepter_funding))
 		status_failed(STATUS_FAIL_INTERNAL_ERROR,
@@ -1730,22 +1734,21 @@ static void accepter_start(struct state *state, const u8 *oc2_msg)
 		 * a courtesy to other implementaters whose brains may be so
 		 * twisted by coding in Go, Scala and Rust that they can no
 		 * longer read C code. */
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Bad signature %s on tx %s using key %s"
-			    " (funding txid %s, psbt %s)",
-			    type_to_string(tmpctx, struct bitcoin_signature,
-					   &remote_sig),
-			    type_to_string(tmpctx, struct bitcoin_tx,
-					   local_commit),
-			    type_to_string(tmpctx, struct pubkey,
-					   &state->their_funding_pubkey),
-			    /* This is the first place we'd discover
-			     * the funding tx doesn't match up */
-			    type_to_string(tmpctx, struct bitcoin_txid,
-					   &state->funding_txid),
-			    type_to_string(tmpctx, struct wally_psbt,
-					   state->psbt));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Bad signature %s on tx %s using key %s"
+				" (funding txid %s, psbt %s)",
+				type_to_string(tmpctx, struct bitcoin_signature,
+					       &remote_sig),
+				type_to_string(tmpctx, struct bitcoin_tx,
+					       local_commit),
+				type_to_string(tmpctx, struct pubkey,
+					       &state->their_funding_pubkey),
+				/* This is the first place we'd discover
+				 * the funding tx doesn't match up */
+				type_to_string(tmpctx, struct bitcoin_txid,
+					       &state->funding_txid),
+				type_to_string(tmpctx, struct wally_psbt,
+					       state->psbt));
 	}
 
 	/* Create commitment tx signatures for remote */
@@ -1950,8 +1953,8 @@ static void opener_start(struct state *state, u8 *msg)
 				      &state->their_points.htlc,
 				      &state->first_per_commitment_point[REMOTE],
 				      a_tlv))
-		peer_failed(state->pps, &state->channel_id,
-			    "Parsing accept_channel2 %s", tal_hex(msg, msg));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Parsing accept_channel2 %s", tal_hex(msg, msg));
 
 	if (a_tlv->option_upfront_shutdown_script) {
 		state->upfront_shutdown_script[REMOTE]
@@ -1967,12 +1970,12 @@ static void opener_start(struct state *state, u8 *msg)
 			     &state->their_points.revocation);
 
 	if (!channel_id_eq(&cid, &state->channel_id))
-		peer_failed(state->pps, &state->channel_id,
-			    "accept_channel2 ids don't match: "
-			    "expected %s, got %s",
-			    type_to_string(msg, struct channel_id,
-					   &state->channel_id),
-			    type_to_string(msg, struct channel_id, &cid));
+		peer_failed_err(state->pps, &cid,
+				"accept_channel2 ids don't match: "
+				"expected %s, got %s",
+				type_to_string(msg, struct channel_id,
+					       &state->channel_id),
+				type_to_string(msg, struct channel_id, &cid));
 
 	/* BOLT-5fcbda56901af9e3b1d057cc41d0c5cfa60a2b94 #2:
 	 * The receiving node:
@@ -1982,22 +1985,22 @@ static void opener_start(struct state *state, u8 *msg)
 	 */
 	if (feerate_min > state->feerate_per_kw_funding
 	    || feerate_max < state->feerate_per_kw_funding)
-		peer_failed(state->pps, &state->channel_id,
-			    "Invalid feerate %d chosen. Valid min %d,"
-			    " valid max %d", state->feerate_per_kw_funding,
-			    feerate_min, feerate_max);
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Invalid feerate %d chosen. Valid min %d,"
+				 " valid max %d", state->feerate_per_kw_funding,
+				 feerate_min, feerate_max);
 
 
 	/* Check that total funding doesn't overflow */
 	if (!amount_sat_add(&total, state->opener_funding,
 			    state->accepter_funding))
-		peer_failed(state->pps, &state->channel_id,
-			    "Amount overflow. Local sats %s. "
-			    "Remote sats %s",
-			    type_to_string(tmpctx, struct amount_sat,
-					   &state->opener_funding),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &state->accepter_funding));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Amount overflow. Local sats %s. "
+				 "Remote sats %s",
+				 type_to_string(tmpctx, struct amount_sat,
+						&state->opener_funding),
+				 type_to_string(tmpctx, struct amount_sat,
+						&state->accepter_funding));
 
 	/* Check that total funding doesn't exceed allowed channel capacity */
 	/* BOLT #2:
@@ -2071,11 +2074,11 @@ static void opener_start(struct state *state, u8 *msg)
 	/* Figure out the txout */
 	if (!find_txout(state->psbt, scriptpubkey_p2wsh(tmpctx, wscript),
 			&state->funding_txout))
-		peer_failed(state->pps, &state->channel_id,
-			    "Expected output %s not found on funding tx %s",
-			    tal_hex(tmpctx, scriptpubkey_p2wsh(tmpctx, wscript)),
-			    type_to_string(tmpctx, struct wally_psbt,
-					   state->psbt));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Expected output %s not found on funding tx %s",
+				 tal_hex(tmpctx, scriptpubkey_p2wsh(tmpctx, wscript)),
+				 type_to_string(tmpctx, struct wally_psbt,
+						state->psbt));
 
 	/* Check tx funds are sane */
 	err_reason = check_balances(tmpctx, state, state->psbt,
@@ -2168,15 +2171,15 @@ static void opener_start(struct state *state, u8 *msg)
 	if (!fromwire_commitment_signed(tmpctx, msg, &cid,
 					&remote_sig.s,
 					&htlc_sigs))
-		peer_failed(state->pps, &state->channel_id,
-			    "Parsing commitment signed %s",
-			    tal_hex(tmpctx, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Parsing commitment signed %s",
+				 tal_hex(tmpctx, msg));
 
 	if (htlc_sigs != NULL)
-		peer_failed(state->pps, &state->channel_id,
-			    "Must not send HTLCs with first"
-			     " commitment. %s",
-			     tal_hex(tmpctx, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Must not send HTLCs with first"
+				 " commitment. %s",
+				 tal_hex(tmpctx, msg));
 
 	local_commit = initial_channel_tx(state, &wscript, state->channel,
 					  &state->first_per_commitment_point[LOCAL],
@@ -2212,22 +2215,21 @@ static void opener_start(struct state *state, u8 *msg)
 		 * a courtesy to other implementaters whose brains may be so
 		 * twisted by coding in Go, Scala and Rust that they can no
 		 * longer read C code. */
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Bad signature %s on tx %s using key %s "
-			    "(funding txid %s, psbt %s)",
-			    type_to_string(tmpctx, struct bitcoin_signature,
-					   &remote_sig),
-			    type_to_string(tmpctx, struct bitcoin_tx,
-					   local_commit),
-			    type_to_string(tmpctx, struct pubkey,
-					   &state->their_funding_pubkey),
-			    /* This is the first place we'd discover the
-			     * funding tx doesn't match up */
-			    type_to_string(tmpctx, struct bitcoin_txid,
-					   &state->funding_txid),
-			    type_to_string(tmpctx, struct wally_psbt,
-					   state->psbt));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Bad signature %s on tx %s using key %s "
+				"(funding txid %s, psbt %s)",
+				type_to_string(tmpctx, struct bitcoin_signature,
+					       &remote_sig),
+				type_to_string(tmpctx, struct bitcoin_tx,
+					       local_commit),
+				type_to_string(tmpctx, struct pubkey,
+					       &state->their_funding_pubkey),
+				/* This is the first place we'd discover the
+				 * funding tx doesn't match up */
+				type_to_string(tmpctx, struct bitcoin_txid,
+					       &state->funding_txid),
+				type_to_string(tmpctx, struct wally_psbt,
+					       state->psbt));
 	}
 
 	if (direct_outputs[LOCAL])
@@ -2274,23 +2276,22 @@ static u8 *handle_funding_locked(struct state *state, u8 *msg)
 	struct pubkey remote_per_commit;
 
 	if (!fromwire_funding_locked(msg, &cid, &remote_per_commit))
-		peer_failed(state->pps, &state->channel_id,
-			    "Bad funding_locked %s", tal_hex(msg, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Bad funding_locked %s", tal_hex(msg, msg));
 
 	if (!channel_id_eq(&cid, &state->channel_id))
-		peer_failed(state->pps, &state->channel_id,
-			    "funding_locked ids don't match: "
-			    "expected %s, got %s",
-			    type_to_string(msg, struct channel_id,
-					   &state->channel_id),
-			    type_to_string(msg, struct channel_id, &cid));
+		peer_failed_err(state->pps, &cid,
+				"funding_locked ids don't match: "
+				"expected %s, got %s",
+				type_to_string(msg, struct channel_id,
+					       &state->channel_id),
+				type_to_string(msg, struct channel_id, &cid));
 
 	/* If we haven't gotten their tx_sigs yet, this is a protocol error */
 	if (!state->remote_funding_sigs_rcvd) {
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "funding_locked sent before tx_signatures %s",
-			    tal_hex(msg, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "funding_locked sent before tx_signatures %s",
+				 tal_hex(msg, msg));
 	}
 
 	state->funding_locked[REMOTE] = true;
@@ -2440,11 +2441,11 @@ check_future_dataloss_fields(struct state *state,
 			      tal_hex(tmpctx, msg));
 
 	if (!correct)
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "bad future last_local_per_commit_secret: %"PRIu64
-			    " vs %d",
-			    next_revocation_number, 0);
+		peer_failed_err(state->pps,
+				&state->channel_id,
+				"bad future last_local_per_commit_secret: %"PRIu64
+				" vs %d",
+				next_revocation_number, 0);
 
 	/* Oh shit, they really are from the future! */
 	peer_billboard(true, "They have future commitment number %"PRIu64
@@ -2460,7 +2461,7 @@ check_future_dataloss_fields(struct state *state,
 			take(towire_dualopend_fail_fallen_behind(NULL)));
 
 	/* We have to send them an error to trigger dropping to chain. */
-	peer_failed(state->pps, &state->channel_id,
+	peer_failed_err(state->pps, &state->channel_id,
 		    "Awaiting unilateral close");
 }
 
@@ -2511,11 +2512,10 @@ static void do_reconnect_dance(struct state *state)
 			 &next_revocation_number,
 			 &last_local_per_commit_secret,
 			 &remote_current_per_commit_point))
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Bad reestablish msg: %s %s",
-			    peer_wire_name(fromwire_peektype(msg)),
-			    tal_hex(msg, msg));
+		peer_failed_warn(state->pps, &state->channel_id,
+				 "Bad reestablish msg: %s %s",
+				 peer_wire_name(fromwire_peektype(msg)),
+				 tal_hex(msg, msg));
 
 	check_channel_id(state, &cid, &state->channel_id);
 
@@ -2541,11 +2541,10 @@ static void do_reconnect_dance(struct state *state)
 	}
 
 	if (next_commitment_number != 1)
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "bad reestablish commitment_number: %"PRIu64
-			    " vs %d",
-			    next_commitment_number, 1);
+		peer_failed_err(state->pps, &state->channel_id,
+				"bad reestablish commitment_number: %"PRIu64
+				" vs %d",
+				next_commitment_number, 1);
 
 	/* It's possible we sent our sigs, but they didn't get them.
 	 * Resend our signatures, just in case */
diff --git a/openingd/openingd.c b/openingd/openingd.c
index b672c9ea6..5b5377b8e 100644
--- a/openingd/openingd.c
+++ b/openingd/openingd.c
@@ -400,9 +400,9 @@ static u8 *funder_channel_start(struct state *state, u8 channel_flags)
 				     &state->their_points.htlc,
 				     &state->first_per_commitment_point[REMOTE],
 				     accept_tlvs)) {
-			peer_failed(state->pps,
-				    &state->channel_id,
-				    "Parsing accept_channel %s", tal_hex(msg, msg));
+		peer_failed_err(state->pps,
+				&state->channel_id,
+				"Parsing accept_channel %s", tal_hex(msg, msg));
 	}
 	state->upfront_shutdown_script[REMOTE]
 		= tal_steal(state, accept_tlvs->upfront_shutdown_script);
@@ -413,12 +413,11 @@ static u8 *funder_channel_start(struct state *state, u8 channel_flags)
 	 * `temporary_channel_id` in the `open_channel` message. */
 	if (!channel_id_eq(&id_in, &state->channel_id))
 		/* In this case we exit, since we don't know what's going on. */
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "accept_channel ids don't match: sent %s got %s",
-			    type_to_string(msg, struct channel_id, &id_in),
-			    type_to_string(msg, struct channel_id,
-					   &state->channel_id));
+		peer_failed_err(state->pps, &id_in,
+				"accept_channel ids don't match: sent %s got %s",
+				type_to_string(msg, struct channel_id, &id_in),
+				type_to_string(msg, struct channel_id,
+					       &state->channel_id));
 
 	if (amount_sat_greater(state->remoteconf.dust_limit,
 			       state->localconf.channel_reserve)) {
@@ -510,9 +509,9 @@ static bool funder_finalize_channel_setup(struct state *state,
 	/* We were supposed to do enough checks above, but just in case,
 	 * new_initial_channel will fail to create absurd channels */
 	if (!state->channel)
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "could not create channel with given config");
+		peer_failed_err(state->pps,
+				&state->channel_id,
+				"could not create channel with given config");
 
 	/* BOLT #2:
 	 *
@@ -592,9 +591,8 @@ static bool funder_finalize_channel_setup(struct state *state,
 
 	sig->sighash_type = SIGHASH_ALL;
 	if (!fromwire_funding_signed(msg, &id_in, &sig->s))
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Parsing funding_signed: %s", tal_hex(msg, msg));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Parsing funding_signed: %s", tal_hex(msg, msg));
 	/* BOLT #2:
 	 *
 	 * This message introduces the `channel_id` to identify the channel.
@@ -621,11 +619,11 @@ static bool funder_finalize_channel_setup(struct state *state,
 	state->channel_id = cid;
 
 	if (!channel_id_eq(&id_in, &state->channel_id))
-		peer_failed(state->pps, &id_in,
-			    "funding_signed ids don't match: expected %s got %s",
-			    type_to_string(msg, struct channel_id,
-					   &state->channel_id),
-			    type_to_string(msg, struct channel_id, &id_in));
+		peer_failed_err(state->pps, &id_in,
+				"funding_signed ids don't match: expected %s got %s",
+				type_to_string(msg, struct channel_id,
+					       &state->channel_id),
+				type_to_string(msg, struct channel_id, &id_in));
 
 	/* BOLT #2:
 	 *
@@ -645,14 +643,13 @@ static bool funder_finalize_channel_setup(struct state *state,
 	}
 
 	if (!check_tx_sig(*tx, 0, NULL, wscript, &state->their_funding_pubkey, sig)) {
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Bad signature %s on tx %s using key %s",
-			    type_to_string(tmpctx, struct bitcoin_signature,
-					   sig),
-			    type_to_string(tmpctx, struct bitcoin_tx, *tx),
-			    type_to_string(tmpctx, struct pubkey,
-					   &state->their_funding_pubkey));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Bad signature %s on tx %s using key %s",
+				type_to_string(tmpctx, struct bitcoin_signature,
+					       sig),
+				type_to_string(tmpctx, struct bitcoin_tx, *tx),
+				type_to_string(tmpctx, struct pubkey,
+					       &state->their_funding_pubkey));
 	}
 
 	/* We save their sig to our first commitment tx */
@@ -764,9 +761,9 @@ static u8 *fundee_channel(struct state *state, const u8 *open_channel_msg)
 			    &state->first_per_commitment_point[REMOTE],
 			    &channel_flags,
 			    open_tlvs))
-		    peer_failed(state->pps,
-				&state->channel_id,
-				"Parsing open_channel %s", tal_hex(tmpctx, open_channel_msg));
+		    peer_failed_err(state->pps,
+				    &state->channel_id,
+				    "Parsing open_channel %s", tal_hex(tmpctx, open_channel_msg));
 	state->upfront_shutdown_script[REMOTE]
 		= tal_steal(state, open_tlvs->upfront_shutdown_script);
 
@@ -809,14 +806,13 @@ static u8 *fundee_channel(struct state *state, const u8 *open_channel_msg)
 	 *   - `push_msat` is greater than `funding_satoshis` * 1000.
 	 */
 	if (amount_msat_greater_sat(state->push_msat, state->funding)) {
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Their push_msat %s"
-			    " would be too large for funding_satoshis %s",
-			    type_to_string(tmpctx, struct amount_msat,
-					   &state->push_msat),
-			    type_to_string(tmpctx, struct amount_sat,
-					   &state->funding));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Their push_msat %s"
+				" would be too large for funding_satoshis %s",
+				type_to_string(tmpctx, struct amount_msat,
+					       &state->push_msat),
+				type_to_string(tmpctx, struct amount_sat,
+					       &state->funding));
 		return NULL;
 	}
 
@@ -966,8 +962,7 @@ static u8 *fundee_channel(struct state *state, const u8 *open_channel_msg)
 				      &state->funding_txid,
 				      &state->funding_txout,
 				      &theirsig.s))
-		peer_failed(state->pps,
-			    &state->channel_id,
+		peer_failed_err(state->pps, &state->channel_id,
 			    "Parsing funding_created");
 
 	/* BOLT #2:
@@ -976,11 +971,11 @@ static u8 *fundee_channel(struct state *state, const u8 *open_channel_msg)
 	 * `temporary_channel_id` in the `open_channel` message.
 	 */
 	if (!channel_id_eq(&id_in, &state->channel_id))
-		peer_failed(state->pps, &id_in,
-			    "funding_created ids don't match: sent %s got %s",
-			    type_to_string(msg, struct channel_id,
-					   &state->channel_id),
-			    type_to_string(msg, struct channel_id, &id_in));
+		peer_failed_err(state->pps, &id_in,
+				"funding_created ids don't match: sent %s got %s",
+				type_to_string(msg, struct channel_id,
+					       &state->channel_id),
+				type_to_string(msg, struct channel_id, &id_in));
 
 	/* Now we can create the channel structure. */
 	state->channel = new_initial_channel(state,
@@ -1003,9 +998,8 @@ static u8 *fundee_channel(struct state *state, const u8 *open_channel_msg)
 	/* We don't expect this to fail, but it does do some additional
 	 * internal sanity checks. */
 	if (!state->channel)
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "We could not create channel with given config");
+		peer_failed_err(state->pps, &state->channel_id,
+				"We could not create channel with given config");
 
 	/* BOLT #2:
 	 *
@@ -1038,14 +1032,13 @@ static u8 *fundee_channel(struct state *state, const u8 *open_channel_msg)
 		 * a courtesy to other implementaters whose brains may be so
 		 * twisted by coding in Go, Scala and Rust that they can no
 		 * longer read C code. */
-		peer_failed(state->pps,
-			    &state->channel_id,
-			    "Bad signature %s on tx %s using key %s",
-			    type_to_string(tmpctx, struct bitcoin_signature,
-					   &theirsig),
-			    type_to_string(tmpctx, struct bitcoin_tx, local_commit),
-			    type_to_string(tmpctx, struct pubkey,
-					   &their_funding_pubkey));
+		peer_failed_err(state->pps, &state->channel_id,
+				"Bad signature %s on tx %s using key %s",
+				type_to_string(tmpctx, struct bitcoin_signature,
+					       &theirsig),
+				type_to_string(tmpctx, struct bitcoin_tx, local_commit),
+				type_to_string(tmpctx, struct pubkey,
+					       &their_funding_pubkey));
 	}
 
 	/* BOLT #2:
diff --git a/tests/test_connection.py b/tests/test_connection.py
index 46d99a006..d04fddde1 100644
--- a/tests/test_connection.py
+++ b/tests/test_connection.py
@@ -1971,7 +1971,19 @@ def test_fee_limits(node_factory, bitcoind):
     l1.set_feerates((15, 15, 15, 15), False)
     l1.start()
 
-    l1.daemon.wait_for_log('Peer transient failure in CHANNELD_NORMAL: channeld: .*: update_fee 253 outside range 1875-75000')
+    l1.daemon.wait_for_log('Peer transient failure in CHANNELD_NORMAL: channeld WARNING: .*: update_fee 253 outside range 1875-75000')
+
+    # Closes, but does not error.  Make sure it's noted in their status though.
+    assert 'update_fee 253 outside range 1875-75000' in only_one(only_one(l1.rpc.listpeers(l2.info['id'])['peers'])['channels'])['status'][0]
+    assert 'update_fee 253 outside range 1875-75000' in only_one(only_one(l2.rpc.listpeers(l1.info['id'])['peers'])['channels'])['status'][0]
+
+    # Make l2 accept those fees, and it should recover.
+    l2.stop()
+    l2.set_feerates((15, 15, 15, 15), False)
+    l2.start()
+
+    l1.rpc.close(l2.info['id'])
+
     # Make sure the resolution of this one doesn't interfere with the next!
     # Note: may succeed, may fail with insufficient fee, depending on how
     # bitcoind feels!
diff --git a/tests/test_misc.py b/tests/test_misc.py
index 57dc78b87..f9e634f29 100644
--- a/tests/test_misc.py
+++ b/tests/test_misc.py
@@ -1352,13 +1352,14 @@ def test_reserve_enforcement(node_factory, executor):
     l2.start()
     wait_for(lambda: only_one(l2.rpc.listpeers(l1.info['id'])['peers'])['connected'])
 
-    # This should be impossible to pay entire thing back: l1 should
-    # kill us for trying to violate reserve.
+    # This should be impossible to pay entire thing back: l1 should warn and
+    # close connection for trying to violate reserve.
     executor.submit(l2.pay, l1, 1000000)
     l1.daemon.wait_for_log(
-        'Peer permanent failure in CHANNELD_NORMAL: channeld: sent '
-        'ERROR Bad peer_add_htlc: CHANNEL_ERR_CHANNEL_CAPACITY_EXCEEDED'
+        'Peer transient failure in CHANNELD_NORMAL: channeld.*'
+        ' CHANNEL_ERR_CHANNEL_CAPACITY_EXCEEDED'
     )
+    assert only_one(l1.rpc.listpeers()['peers'])['connected'] is False
 
 
 @unittest.skipIf(not DEVELOPER, "needs dev_disconnect")
diff --git a/tests/test_pay.py b/tests/test_pay.py
index f6a5a11bb..9f15a0db4 100644
--- a/tests/test_pay.py
+++ b/tests/test_pay.py
@@ -263,7 +263,8 @@ def test_pay_disconnect(node_factory, bitcoind):
     # Wait for l1 notice
     l1.daemon.wait_for_log(r'Peer transient failure in CHANNELD_NORMAL: channeld: .*: update_fee \d+ outside range 1875-75000')
 
-    # l2 fails hard.
+    # Make l2 fail hard.
+    l2.rpc.close(l1.info['id'], unilateraltimeout=1)
     l2.daemon.wait_for_log('sendrawtx exit')
     bitcoind.generate_block(1, wait_for_mempool=1)
     sync_blockheight(bitcoind, [l1, l2])