diff --git a/lightning/src/ln/async_payments_tests.rs b/lightning/src/ln/async_payments_tests.rs
index 25522346d9c..341bd5d7269 100644
--- a/lightning/src/ln/async_payments_tests.rs
+++ b/lightning/src/ln/async_payments_tests.rs
@@ -504,6 +504,9 @@ fn often_offline_node_cfg() -> UserConfig {
 	cfg.channel_handshake_config.announce_for_forwarding = false;
 	cfg.channel_handshake_limits.force_announced_channel_preference = true;
 	cfg.hold_outbound_htlcs_at_next_hop = true;
+	// Use the setting that matches the default at the time these tests were written
+	cfg.channel_handshake_config.unannounced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
 	cfg
 }
 
@@ -1310,6 +1313,10 @@ fn async_receive_mpp() {
 
 	let mut allow_priv_chan_fwds_cfg = test_default_channel_config();
 	allow_priv_chan_fwds_cfg.accept_forwards_to_priv_channels = true;
+	// Set the percentage to the default value at the time this test was written
+	allow_priv_chan_fwds_cfg
+		.channel_handshake_config
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
 
 	let node_chanmgrs = create_node_chanmgrs(
 		4,
diff --git a/lightning/src/ln/blinded_payment_tests.rs b/lightning/src/ln/blinded_payment_tests.rs
index e148ce2c474..d62f79957eb 100644
--- a/lightning/src/ln/blinded_payment_tests.rs
+++ b/lightning/src/ln/blinded_payment_tests.rs
@@ -269,7 +269,11 @@ fn one_hop_blinded_path_with_dummy_hops() {
 fn mpp_to_one_hop_blinded_path() {
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let nodes = create_network(4, &node_cfgs, &node_chanmgrs);
 	let mut secp_ctx = Secp256k1::new();
 
@@ -349,7 +353,11 @@ fn mpp_to_one_hop_blinded_path() {
 fn mpp_to_three_hop_blinded_paths() {
 	let chanmon_cfgs = create_chanmon_cfgs(6);
 	let node_cfgs = create_node_cfgs(6, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(6, &node_cfgs, &[None, None, None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
+	let configs: [Option<UserConfig>; 6] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(6, &node_cfgs, &configs);
 	let nodes = create_network(6, &node_cfgs, &node_chanmgrs);
 
 	// Create this network topology so node 0 MPP's over 2 3-hop blinded paths:
diff --git a/lightning/src/ln/chanmon_update_fail_tests.rs b/lightning/src/ln/chanmon_update_fail_tests.rs
index dd799c2c27c..af4d1569d0c 100644
--- a/lightning/src/ln/chanmon_update_fail_tests.rs
+++ b/lightning/src/ln/chanmon_update_fail_tests.rs
@@ -4656,6 +4656,7 @@ fn test_claim_to_closed_channel_blocks_claimed_event() {
 #[test]
 #[cfg(all(feature = "std", not(target_os = "windows")))]
 fn test_single_channel_multiple_mpp() {
+	use crate::util::config::UserConfig;
 	use std::sync::atomic::{AtomicBool, Ordering};
 
 	// Test what happens when we attempt to claim an MPP with many parts that came to us through
@@ -4667,7 +4668,11 @@ fn test_single_channel_multiple_mpp() {
 	// for more info.
 	let chanmon_cfgs = create_chanmon_cfgs(9);
 	let node_cfgs = create_node_cfgs(9, &chanmon_cfgs);
-	let configs = [None, None, None, None, None, None, None, None, None];
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let configs: [Option<UserConfig>; 9] = core::array::from_fn(|_| Some(config.clone()));
 	let node_chanmgrs = create_node_chanmgrs(9, &node_cfgs, &configs);
 	let mut nodes = create_network(9, &node_cfgs, &node_chanmgrs);
 
diff --git a/lightning/src/ln/channel.rs b/lightning/src/ln/channel.rs
index 03f78dc82b4..5579c119e05 100644
--- a/lightning/src/ln/channel.rs
+++ b/lightning/src/ln/channel.rs
@@ -4102,6 +4102,7 @@ impl<SP: SignerProvider> ChannelContext<SP> {
 			),
 			holder_max_htlc_value_in_flight_msat: get_holder_max_htlc_value_in_flight_msat(
 				channel_value_satoshis,
+				announce_for_forwarding,
 				&config.channel_handshake_config,
 			),
 			counterparty_htlc_minimum_msat: open_channel_fields.htlc_minimum_msat,
@@ -4405,6 +4406,7 @@ impl<SP: SignerProvider> ChannelContext<SP> {
 			// receive `accept_channel2`.
 			holder_max_htlc_value_in_flight_msat: get_holder_max_htlc_value_in_flight_msat(
 				channel_value_satoshis,
+				config.channel_handshake_config.announce_for_forwarding,
 				&config.channel_handshake_config,
 			),
 			counterparty_htlc_minimum_msat: 0,
@@ -6678,24 +6680,41 @@ impl<SP: SignerProvider> ChannelContext<SP> {
 
 /// Returns the value to use for `holder_max_htlc_value_in_flight_msat` as a percentage of the
 /// `channel_value_satoshis` in msat, set through
-/// [`ChannelHandshakeConfig::max_inbound_htlc_value_in_flight_percent_of_channel`]
+/// [`ChannelHandshakeConfig::announced_channel_max_inbound_htlc_value_in_flight_percentage`]
+/// or [`ChannelHandshakeConfig::unannounced_channel_max_inbound_htlc_value_in_flight_percentage`]
+/// depending on the value of [`ChannelHandshakeConfig::announce_for_forwarding`].
 ///
 /// The effective percentage is lower bounded by 1% and upper bounded by 100%.
 ///
-/// [`ChannelHandshakeConfig::max_inbound_htlc_value_in_flight_percent_of_channel`]: crate::util::config::ChannelHandshakeConfig::max_inbound_htlc_value_in_flight_percent_of_channel
+/// [`ChannelHandshakeConfig::announced_channel_max_inbound_htlc_value_in_flight_percentage`]: crate::util::config::ChannelHandshakeConfig::announced_channel_max_inbound_htlc_value_in_flight_percentage
+/// [`ChannelHandshakeConfig::unannounced_channel_max_inbound_htlc_value_in_flight_percentage`]: crate::util::config::ChannelHandshakeConfig::unannounced_channel_max_inbound_htlc_value_in_flight_percentage
+/// [`ChannelHandshakeConfig::announce_for_forwarding`]: crate::util::config::ChannelHandshakeConfig::announce_for_forwarding
 fn get_holder_max_htlc_value_in_flight_msat(
-	channel_value_satoshis: u64, config: &ChannelHandshakeConfig,
+	channel_value_satoshis: u64, is_announced_channel: bool, config: &ChannelHandshakeConfig,
 ) -> u64 {
-	let configured_percent = if config.max_inbound_htlc_value_in_flight_percent_of_channel < 1 {
+	let config_setting = if is_announced_channel {
+		config.announced_channel_max_inbound_htlc_value_in_flight_percentage
+	} else {
+		config.unannounced_channel_max_inbound_htlc_value_in_flight_percentage
+	};
+	let configured_percent = if config_setting < 1 {
 		1
-	} else if config.max_inbound_htlc_value_in_flight_percent_of_channel > 100 {
+	} else if config_setting > 100 {
 		100
 	} else {
-		config.max_inbound_htlc_value_in_flight_percent_of_channel as u64
+		config_setting as u64
 	};
 	channel_value_satoshis * 10 * configured_percent
 }
 
+/// This is for legacy reasons, present for forward-compatibility.
+/// LDK versions older than 0.0.104 don't know how read/handle values other than the legacy
+/// percentage from storage. Hence, we use this function to not persist legacy values of
+/// `holder_max_htlc_value_in_flight_msat` for channels into storage.
+fn get_legacy_default_holder_max_htlc_value_in_flight_msat(channel_value_satoshis: u64) -> u64 {
+	channel_value_satoshis * 10 * MAX_IN_FLIGHT_PERCENT_LEGACY as u64
+}
+
 /// Returns a minimum channel reserve value the remote needs to maintain,
 /// required by us according to the configured or default
 /// [`ChannelHandshakeConfig::their_channel_reserve_proportional_millionths`]
@@ -15691,15 +15710,11 @@ impl<SP: SignerProvider> Writeable for FundedChannel<SP> {
 				None
 			};
 
-		let mut old_max_in_flight_percent_config = UserConfig::default().channel_handshake_config;
-		old_max_in_flight_percent_config.max_inbound_htlc_value_in_flight_percent_of_channel =
-			MAX_IN_FLIGHT_PERCENT_LEGACY;
-		let max_in_flight_msat = get_holder_max_htlc_value_in_flight_msat(
+		let legacy_max_in_flight_msat = get_legacy_default_holder_max_htlc_value_in_flight_msat(
 			self.funding.get_value_satoshis(),
-			&old_max_in_flight_percent_config,
 		);
 		let serialized_holder_htlc_max_in_flight =
-			if self.context.holder_max_htlc_value_in_flight_msat != max_in_flight_msat {
+			if self.context.holder_max_htlc_value_in_flight_msat != legacy_max_in_flight_msat {
 				Some(self.context.holder_max_htlc_value_in_flight_msat)
 			} else {
 				None
@@ -16131,11 +16146,9 @@ impl<'a, 'b, 'c, ES: EntropySource, SP: SignerProvider>
 		let mut holder_selected_channel_reserve_satoshis = Some(
 			get_legacy_default_holder_selected_channel_reserve_satoshis(channel_value_satoshis),
 		);
+
 		let mut holder_max_htlc_value_in_flight_msat =
-			Some(get_holder_max_htlc_value_in_flight_msat(
-				channel_value_satoshis,
-				&UserConfig::default().channel_handshake_config,
-			));
+			Some(get_legacy_default_holder_max_htlc_value_in_flight_msat(channel_value_satoshis));
 		// Prior to supporting channel type negotiation, all of our channels were static_remotekey
 		// only, so we default to that if none was written.
 		let mut channel_type = Some(ChannelTypeFeatures::only_static_remote_key());
@@ -17141,8 +17154,13 @@ mod tests {
 	}
 
 	#[test]
-	#[rustfmt::skip]
 	fn test_configured_holder_max_htlc_value_in_flight() {
+		do_test_configured_holder_max_htlc_value_in_flight(true);
+		do_test_configured_holder_max_htlc_value_in_flight(false);
+	}
+
+	#[rustfmt::skip]
+	fn do_test_configured_holder_max_htlc_value_in_flight(announce_channel: bool) {
 		let test_est = TestFeeEstimator::new(15000);
 		let feeest = LowerBoundedFeeEstimator::new(&test_est);
 		let logger = TestLogger::new();
@@ -17154,13 +17172,49 @@ mod tests {
 		let inbound_node_id = PublicKey::from_secret_key(&secp_ctx, &SecretKey::from_slice(&[7; 32]).unwrap());
 
 		let mut config_2_percent = UserConfig::default();
-		config_2_percent.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 2;
+		config_2_percent.channel_handshake_config.announce_for_forwarding = announce_channel;
+		if announce_channel {
+			config_2_percent
+				.channel_handshake_config
+				.announced_channel_max_inbound_htlc_value_in_flight_percentage = 2;
+		} else {
+			config_2_percent
+				.channel_handshake_config
+				.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = 2;
+		}
 		let mut config_99_percent = UserConfig::default();
-		config_99_percent.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 99;
+		config_99_percent.channel_handshake_config.announce_for_forwarding = announce_channel;
+		if announce_channel {
+			config_99_percent
+				.channel_handshake_config
+				.announced_channel_max_inbound_htlc_value_in_flight_percentage = 99;
+		} else {
+			config_99_percent
+				.channel_handshake_config
+				.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = 99;
+		}
 		let mut config_0_percent = UserConfig::default();
-		config_0_percent.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 0;
+		config_0_percent.channel_handshake_config.announce_for_forwarding = announce_channel;
+		if announce_channel {
+			config_0_percent
+				.channel_handshake_config
+				.announced_channel_max_inbound_htlc_value_in_flight_percentage = 0;
+		} else {
+			config_0_percent
+				.channel_handshake_config
+				.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = 0;
+		}
 		let mut config_101_percent = UserConfig::default();
-		config_101_percent.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 101;
+		config_101_percent.channel_handshake_config.announce_for_forwarding = announce_channel;
+		if announce_channel {
+			config_101_percent
+				.channel_handshake_config
+				.announced_channel_max_inbound_htlc_value_in_flight_percentage = 101;
+		} else {
+			config_101_percent
+				.channel_handshake_config
+				.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = 101;
+		}
 
 		// Test that `OutboundV1Channel::new` creates a channel with the correct value for
 		// `holder_max_htlc_value_in_flight_msat`, when configured with a valid percentage value,
@@ -17189,26 +17243,26 @@ mod tests {
 		assert_eq!(chan_4.context.holder_max_htlc_value_in_flight_msat, (chan_4_value_msat as f64 * 0.99) as u64);
 
 		// Test that `OutboundV1Channel::new` uses the lower bound of the configurable percentage values (1%)
-		// if `max_inbound_htlc_value_in_flight_percent_of_channel` is set to a value less than 1.
+		// if `(un)announced_channel_max_inbound_htlc_value_in_flight_percentage` is set to a value less than 1.
 		let chan_5 = OutboundV1Channel::<&TestKeysInterface>::new(&feeest, &&keys_provider, &&keys_provider, outbound_node_id, &channelmanager::provided_init_features(&config_0_percent), 10000000, 100000, 42, &config_0_percent, 0, 42, None, &logger, None).unwrap();
 		let chan_5_value_msat = chan_5.funding.get_value_satoshis() * 1000;
 		assert_eq!(chan_5.context.holder_max_htlc_value_in_flight_msat, (chan_5_value_msat as f64 * 0.01) as u64);
 
 		// Test that `OutboundV1Channel::new` uses the upper bound of the configurable percentage values
-		// (100%) if `max_inbound_htlc_value_in_flight_percent_of_channel` is set to a larger value
+		// (100%) if `(un)announced_channel_max_inbound_htlc_value_in_flight_percentage` is set to a larger value
 		// than 100.
 		let chan_6 = OutboundV1Channel::<&TestKeysInterface>::new(&feeest, &&keys_provider, &&keys_provider, outbound_node_id, &channelmanager::provided_init_features(&config_101_percent), 10000000, 100000, 42, &config_101_percent, 0, 42, None, &logger, None).unwrap();
 		let chan_6_value_msat = chan_6.funding.get_value_satoshis() * 1000;
 		assert_eq!(chan_6.context.holder_max_htlc_value_in_flight_msat, chan_6_value_msat);
 
 		// Test that `InboundV1Channel::new` uses the lower bound of the configurable percentage values (1%)
-		// if `max_inbound_htlc_value_in_flight_percent_of_channel` is set to a value less than 1.
+		// if `(un)announced_channel_max_inbound_htlc_value_in_flight_percentage` is set to a value less than 1.
 		let chan_7 = InboundV1Channel::<&TestKeysInterface>::new(&feeest, &&keys_provider, &&keys_provider, inbound_node_id, &channelmanager::provided_channel_type_features(&config_0_percent), &channelmanager::provided_init_features(&config_0_percent), &chan_1_open_channel_msg, 7, &config_0_percent, 0, &&logger, None).unwrap();
 		let chan_7_value_msat = chan_7.funding.get_value_satoshis() * 1000;
 		assert_eq!(chan_7.context.holder_max_htlc_value_in_flight_msat, (chan_7_value_msat as f64 * 0.01) as u64);
 
 		// Test that `InboundV1Channel::new` uses the upper bound of the configurable percentage values
-		// (100%) if `max_inbound_htlc_value_in_flight_percent_of_channel` is set to a larger value
+		// (100%) if `(un)announced_channel_max_inbound_htlc_value_in_flight_percentage` is set to a larger value
 		// than 100.
 		let chan_8 = InboundV1Channel::<&TestKeysInterface>::new(&feeest, &&keys_provider, &&keys_provider, inbound_node_id, &channelmanager::provided_channel_type_features(&config_101_percent), &channelmanager::provided_init_features(&config_101_percent), &chan_1_open_channel_msg, 7, &config_101_percent, 0, &&logger, None).unwrap();
 		let chan_8_value_msat = chan_8.funding.get_value_satoshis() * 1000;
diff --git a/lightning/src/ln/channel_open_tests.rs b/lightning/src/ln/channel_open_tests.rs
index d28d157488d..ac4a1b67994 100644
--- a/lightning/src/ln/channel_open_tests.rs
+++ b/lightning/src/ln/channel_open_tests.rs
@@ -182,7 +182,8 @@ fn test_inbound_anchors_manual_acceptance() {
 fn test_inbound_anchors_config_overridden() {
 	let overrides = ChannelConfigOverrides {
 		handshake_overrides: Some(ChannelHandshakeConfigUpdate {
-			max_inbound_htlc_value_in_flight_percent_of_channel: Some(5),
+			announced_channel_max_inbound_htlc_value_in_flight_percentage: Some(5),
+			unannounced_channel_max_inbound_htlc_value_in_flight_percentage: None,
 			htlc_minimum_msat: Some(1000),
 			minimum_depth: Some(2),
 			to_self_delay: Some(200),
@@ -1070,7 +1071,8 @@ pub fn test_accept_inbound_channel_config_override() {
 
 	let config_overrides = ChannelConfigOverrides {
 		handshake_overrides: Some(ChannelHandshakeConfigUpdate {
-			max_inbound_htlc_value_in_flight_percent_of_channel: None,
+			announced_channel_max_inbound_htlc_value_in_flight_percentage: None,
+			unannounced_channel_max_inbound_htlc_value_in_flight_percentage: None,
 			htlc_minimum_msat: None,
 			minimum_depth: None,
 			to_self_delay: None,
diff --git a/lightning/src/ln/functional_tests.rs b/lightning/src/ln/functional_tests.rs
index 7ed46922d8a..32a07be4d2b 100644
--- a/lightning/src/ln/functional_tests.rs
+++ b/lightning/src/ln/functional_tests.rs
@@ -6903,22 +6903,22 @@ pub fn test_channel_update_has_correct_htlc_maximum_msat() {
 	config_30_percent.channel_handshake_config.announce_for_forwarding = true;
 	config_30_percent
 		.channel_handshake_config
-		.max_inbound_htlc_value_in_flight_percent_of_channel = 30;
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 30;
 	let mut config_50_percent = UserConfig::default();
 	config_50_percent.channel_handshake_config.announce_for_forwarding = true;
 	config_50_percent
 		.channel_handshake_config
-		.max_inbound_htlc_value_in_flight_percent_of_channel = 50;
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 50;
 	let mut config_95_percent = UserConfig::default();
 	config_95_percent.channel_handshake_config.announce_for_forwarding = true;
 	config_95_percent
 		.channel_handshake_config
-		.max_inbound_htlc_value_in_flight_percent_of_channel = 95;
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 95;
 	let mut config_100_percent = UserConfig::default();
 	config_100_percent.channel_handshake_config.announce_for_forwarding = true;
 	config_100_percent
 		.channel_handshake_config
-		.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 100;
 
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
@@ -8436,7 +8436,12 @@ pub fn test_inconsistent_mpp_params() {
 	// such HTLC and allow the second to stay.
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let nodes = create_network(4, &node_cfgs, &node_chanmgrs);
 
 	let node_a_id = nodes[0].node.get_our_node_id();
@@ -8580,7 +8585,12 @@ pub fn test_double_partial_claim() {
 	// amount.
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let nodes = create_network(4, &node_cfgs, &node_chanmgrs);
 
 	let node_b_id = nodes[1].node.get_our_node_id();
@@ -9067,7 +9077,8 @@ pub fn test_nondust_htlc_excess_fees_are_dust() {
 	config.channel_handshake_limits.min_max_accepted_htlcs = chan_utils::max_htlcs(&chan_ty);
 	config.channel_handshake_config.our_max_accepted_htlcs = chan_utils::max_htlcs(&chan_ty);
 	config.channel_handshake_config.our_htlc_minimum_msat = 1;
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 
 	let node_chanmgrs = create_node_chanmgrs(
 		3,
@@ -10039,7 +10050,8 @@ pub fn test_dust_exposure_holding_cell_assertion() {
 	// Use a fixed dust exposure limit to make the test simpler
 	const DUST_HTLC_VALUE_MSAT: u64 = 500_000;
 	config.channel_config.max_dust_htlc_exposure = MaxDustHTLCExposure::FixedLimitMsat(5_000_000);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 
 	let configs = [Some(config.clone()), Some(config.clone()), Some(config.clone())];
 	let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &configs);
diff --git a/lightning/src/ln/htlc_reserve_unit_tests.rs b/lightning/src/ln/htlc_reserve_unit_tests.rs
index 608ac143c8d..aaf81b87be7 100644
--- a/lightning/src/ln/htlc_reserve_unit_tests.rs
+++ b/lightning/src/ln/htlc_reserve_unit_tests.rs
@@ -2376,7 +2376,8 @@ fn test_create_channel_to_trusted_peer_0reserve() {
 fn do_test_create_channel_to_trusted_peer_0reserve(mut config: UserConfig) -> ChannelTypeFeatures {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
@@ -2465,7 +2466,8 @@ fn do_test_accept_inbound_channel_from_trusted_peer_0reserve(
 ) -> ChannelTypeFeatures {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
@@ -2679,7 +2681,8 @@ fn do_test_0reserve_no_outputs_legacy(no_outputs_case: LegacyChannelsNoOutputs)
 
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 
 	let channel_type = ChannelTypeFeatures::only_static_remote_key();
 
@@ -2979,7 +2982,8 @@ fn do_test_0reserve_no_outputs_keyed_anchors(payment_success: bool) {
 
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 
 	let channel_type = ChannelTypeFeatures::anchors_zero_htlc_fee_and_dependencies();
 
@@ -3112,7 +3116,8 @@ fn do_test_0reserve_no_outputs_p2a_anchor() {
 
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 
 	let channel_type = ChannelTypeFeatures::anchors_zero_fee_commitments();
 
@@ -3170,7 +3175,8 @@ fn do_test_0reserve_force_close_with_single_p2a_output(high_feerate: bool) {
 		*feerate_lock = 2500;
 	}
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 
 	let channel_type = ChannelTypeFeatures::anchors_zero_fee_commitments();
 
@@ -3276,7 +3282,8 @@ fn test_0reserve_zero_conf_combined() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
diff --git a/lightning/src/ln/monitor_tests.rs b/lightning/src/ln/monitor_tests.rs
index efd2084a38e..f52f093917b 100644
--- a/lightning/src/ln/monitor_tests.rs
+++ b/lightning/src/ln/monitor_tests.rs
@@ -2724,6 +2724,8 @@ fn do_test_anchors_aggregated_revoked_htlc_tx(p2a_anchor: bool) {
 	anchors_config.channel_handshake_config.announce_for_forwarding = true;
 	anchors_config.channel_handshake_config.negotiate_anchors_zero_fee_htlc_tx = true;
 	anchors_config.channel_handshake_config.negotiate_anchor_zero_fee_commitments = p2a_anchor;
+	// Set the percentage to the default value at the time this test was written
+	anchors_config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[Some(anchors_config.clone()), Some(anchors_config.clone())]);
 	let bob_deserialized;
 
diff --git a/lightning/src/ln/payment_tests.rs b/lightning/src/ln/payment_tests.rs
index be52459a872..807d1a1af39 100644
--- a/lightning/src/ln/payment_tests.rs
+++ b/lightning/src/ln/payment_tests.rs
@@ -45,7 +45,7 @@ use crate::sign::EntropySource;
 use crate::types::features::{Bolt11InvoiceFeatures, ChannelTypeFeatures};
 use crate::types::payment::{PaymentHash, PaymentPreimage, PaymentSecret};
 use crate::types::string::UntrustedString;
-use crate::util::config::HTLCInterceptionFlags;
+use crate::util::config::{HTLCInterceptionFlags, UserConfig};
 use crate::util::errors::APIError;
 use crate::util::ser::Writeable;
 use bitcoin::hashes::sha256::Hash as Sha256;
@@ -212,7 +212,9 @@ fn mpp_retry_overpay() {
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
 
 	let mut user_config = test_legacy_channel_config();
-	user_config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	user_config
+		.channel_handshake_config
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 100;
 	let mut limited_1 = user_config.clone();
 	limited_1.channel_handshake_config.our_htlc_minimum_msat = 35_000_000;
 	let mut limited_2 = user_config.clone();
@@ -487,7 +489,12 @@ fn do_test_keysend_payments(public_node: bool) {
 fn test_mpp_keysend() {
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let nodes = create_network(4, &node_cfgs, &node_chanmgrs);
 
 	let node_b_id = nodes[1].node.get_our_node_id();
@@ -1702,7 +1709,8 @@ fn preflight_probes_yield_event_skip_private_hop() {
 
 	// We alleviate the HTLC max-in-flight limit, as otherwise we'd always be limited through that.
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let config = Some(config);
 
 	let configs = [config.clone(), config.clone(), config.clone(), config.clone(), config];
@@ -1749,7 +1757,8 @@ fn preflight_probes_yield_event() {
 
 	// We alleviate the HTLC max-in-flight limit, as otherwise we'd always be limited through that.
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let config = Some(config);
 
 	let configs = [config.clone(), config.clone(), config.clone(), config];
@@ -1800,7 +1809,8 @@ fn preflight_probes_yield_event_and_skip() {
 
 	// We alleviate the HTLC max-in-flight limit, as otherwise we'd always be limited through that.
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let config = Some(config);
 
 	let configs =
@@ -2429,11 +2439,12 @@ fn do_accept_underpaying_htlcs_config(num_mpp_parts: usize) {
 		HTLCInterceptionFlags::ToInterceptSCIDs as u8;
 	intercept_forwards_config
 		.channel_handshake_config
-		.max_inbound_htlc_value_in_flight_percent_of_channel = max_in_flight_percent;
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = max_in_flight_percent;
 	let mut underpay_config = test_default_channel_config();
 	underpay_config.channel_config.accept_underpaying_htlcs = true;
-	underpay_config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel =
-		max_in_flight_percent;
+	underpay_config
+		.channel_handshake_config
+		.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = max_in_flight_percent;
 
 	let configs = [None, Some(intercept_forwards_config), Some(underpay_config)];
 	let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &configs);
@@ -3220,7 +3231,12 @@ fn retry_multi_path_single_failed_payment() {
 	// Tests that we can/will retry after a single path of an MPP payment failed immediately
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let node_chanmgrs =
+		create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config.clone())]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
 	let node_b_id = nodes[1].node.get_our_node_id();
@@ -3339,7 +3355,12 @@ fn immediate_retry_on_failure() {
 	// Tests that we can/will retry immediately after a failure
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let node_chanmgrs =
+		create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config.clone())]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
 	let node_b_id = nodes[1].node.get_our_node_id();
@@ -4240,17 +4261,13 @@ fn do_claim_from_closed_chan(fail_payment: bool) {
 	// CLTVs on the paths to different value resulting in a different claim deadline.
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
-	let legacy_cfg = test_legacy_channel_config();
-	let node_chanmgrs = create_node_chanmgrs(
-		4,
-		&node_cfgs,
-		&[
-			Some(legacy_cfg.clone()),
-			Some(legacy_cfg.clone()),
-			Some(legacy_cfg.clone()),
-			Some(legacy_cfg),
-		],
-	);
+	let mut legacy_cfg = test_legacy_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	legacy_cfg
+		.channel_handshake_config
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(legacy_cfg.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let mut nodes = create_network(4, &node_cfgs, &node_chanmgrs);
 
 	let node_a_id = nodes[0].node.get_our_node_id();
@@ -4635,7 +4652,12 @@ fn do_test_custom_tlvs_consistency(
 ) {
 	let chanmon_cfgs = create_chanmon_cfgs(4);
 	let node_cfgs = create_node_cfgs(4, &chanmon_cfgs);
-	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let nodes = create_network(4, &node_cfgs, &node_chanmgrs);
 
 	let node_a_id = nodes[0].node.get_our_node_id();
@@ -4788,7 +4810,8 @@ fn do_test_payment_metadata_consistency(do_reload: bool, do_modify: bool) {
 	let chain_mon;
 
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 50;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		50;
 	let configs = [None, Some(config.clone()), Some(config.clone()), Some(config.clone())];
 	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let node_d_reload;
@@ -5147,7 +5170,8 @@ fn test_non_strict_forwarding() {
 	let node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
 
 	let mut config = test_legacy_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let configs = [Some(config.clone()), Some(config.clone()), Some(config)];
 
 	let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &configs);
@@ -5386,11 +5410,15 @@ fn max_out_mpp_path() {
 
 	let mut user_cfg = test_default_channel_config();
 	user_cfg.channel_config.forwarding_fee_base_msat = 0;
-	user_cfg.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	user_cfg
+		.channel_handshake_config
+		.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = 100;
 	let mut lsp_cfg = test_default_channel_config();
 	lsp_cfg.channel_config.forwarding_fee_base_msat = 0;
 	lsp_cfg.channel_config.forwarding_fee_proportional_millionths = 3000;
-	lsp_cfg.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	lsp_cfg
+		.channel_handshake_config
+		.unannounced_channel_max_inbound_htlc_value_in_flight_percentage = 100;
 
 	let chanmon_cfgs = create_chanmon_cfgs(3);
 	let node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
diff --git a/lightning/src/ln/reload_tests.rs b/lightning/src/ln/reload_tests.rs
index 892a6c62d8f..9e992467ecd 100644
--- a/lightning/src/ln/reload_tests.rs
+++ b/lightning/src/ln/reload_tests.rs
@@ -745,7 +745,11 @@ fn do_test_partial_claim_before_restart(persist_both_monitors: bool, double_rest
 	let (persist_d_1, persist_d_2);
 	let (chain_d_1, chain_d_2);
 
-	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &[None, None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
+	let configs: [Option<UserConfig>; 4] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(4, &node_cfgs, &configs);
 	let (node_d_1, node_d_2);
 
 	let mut nodes = create_network(4, &node_cfgs, &node_chanmgrs);
@@ -2107,7 +2111,11 @@ fn test_reload_with_mpp_claims_on_same_channel() {
 	let node_cfgs = create_node_cfgs(3, &chanmon_cfgs);
 	let persister;
 	let new_chain_monitor;
-	let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &[None, None, None]);
+	let mut config = test_default_channel_config();
+	// Set the percentage to the default value at the time this test was written
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage = 10;
+	let configs: [Option<UserConfig>; 3] = core::array::from_fn(|_| Some(config.clone()));
+	let node_chanmgrs = create_node_chanmgrs(3, &node_cfgs, &configs);
 	let nodes_1_deserialized;
 	let mut nodes = create_network(3, &node_cfgs, &node_chanmgrs);
 
diff --git a/lightning/src/ln/splicing_tests.rs b/lightning/src/ln/splicing_tests.rs
index 5279f2dfcc0..e4c4c10dbbd 100644
--- a/lightning/src/ln/splicing_tests.rs
+++ b/lightning/src/ln/splicing_tests.rs
@@ -1122,7 +1122,8 @@ fn test_splice_in() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
@@ -1172,7 +1173,8 @@ fn test_splice_out() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
@@ -1215,7 +1217,8 @@ fn test_splice_in_and_out() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[None, Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
@@ -3546,7 +3549,8 @@ fn test_splice_balance_falls_below_reserve() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
@@ -4066,19 +4070,22 @@ fn test_funding_contributed_unfunded_channel() {
 #[test]
 fn test_splice_pending_htlcs() {
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	config.channel_handshake_config.negotiate_anchors_zero_fee_htlc_tx = false;
 	config.channel_handshake_config.negotiate_anchor_zero_fee_commitments = false;
 	do_test_splice_pending_htlcs(config);
 
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	config.channel_handshake_config.negotiate_anchors_zero_fee_htlc_tx = true;
 	config.channel_handshake_config.negotiate_anchor_zero_fee_commitments = false;
 	do_test_splice_pending_htlcs(config);
 
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	config.channel_handshake_config.negotiate_anchors_zero_fee_htlc_tx = false;
 	config.channel_handshake_config.negotiate_anchor_zero_fee_commitments = true;
 	do_test_splice_pending_htlcs(config);
@@ -6298,7 +6305,8 @@ fn test_splice_revalidation_at_quiescence() {
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let mut config = test_default_channel_config();
-	config.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	config.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	let node_chanmgrs = create_node_chanmgrs(2, &node_cfgs, &[Some(config.clone()), Some(config)]);
 	let nodes = create_network(2, &node_cfgs, &node_chanmgrs);
 
diff --git a/lightning/src/ln/update_fee_tests.rs b/lightning/src/ln/update_fee_tests.rs
index fc80059bbd3..b1f8257088e 100644
--- a/lightning/src/ln/update_fee_tests.rs
+++ b/lightning/src/ln/update_fee_tests.rs
@@ -1031,7 +1031,8 @@ pub fn do_cannot_afford_on_holding_cell_release(
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 
 	let mut cfg = test_legacy_channel_config();
-	cfg.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	cfg.channel_handshake_config.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+		100;
 	if channel_type_features.supports_anchors_zero_fee_htlc_tx() {
 		cfg.channel_handshake_config.negotiate_anchors_zero_fee_htlc_tx = true;
 	}
@@ -1225,7 +1226,9 @@ pub fn do_can_afford_given_trimmed_htlcs(inequality_regions: core::cmp::Ordering
 	let chanmon_cfgs = create_chanmon_cfgs(2);
 
 	let mut legacy_cfg = test_legacy_channel_config();
-	legacy_cfg.channel_handshake_config.max_inbound_htlc_value_in_flight_percent_of_channel = 100;
+	legacy_cfg
+		.channel_handshake_config
+		.announced_channel_max_inbound_htlc_value_in_flight_percentage = 100;
 
 	let node_cfgs = create_node_cfgs(2, &chanmon_cfgs);
 	let node_chanmgrs =
diff --git a/lightning/src/util/config.rs b/lightning/src/util/config.rs
index 14c507184ac..ebef8c27bca 100644
--- a/lightning/src/util/config.rs
+++ b/lightning/src/util/config.rs
@@ -62,17 +62,35 @@ pub struct ChannelHandshakeConfig {
 	/// Default value: `1` (If the value is less than `1`, it is ignored and set to `1`, as is
 	/// required by the protocol.
 	pub our_htlc_minimum_msat: u64,
-	/// Sets the percentage of the channel value we will cap the total value of outstanding inbound
-	/// HTLCs to.
+	/// Sets the maximum percentage of the total channel value that can be allocated to inbound
+	/// HTLCs in announced channels.
 	///
 	/// This can be set to a value between 1-100, where the value corresponds to the percent of the
 	/// channel value in whole percentages.
 	///
 	/// Note that:
-	/// * If configured to another value than the default value `10`, any new channels created with
-	///   the non default value will cause versions of LDK prior to 0.0.104 to refuse to read the
-	///   `ChannelManager`.
+	/// * This caps the total value for inbound HTLCs in-flight only, and there's currently
+	///   no way to configure the cap for the total value of outbound HTLCs in-flight.
+	///
+	/// * The requirements for your node being online to ensure the safety of HTLC-encumbered funds
+	///   are different from the non-HTLC-encumbered funds. This makes this an important knob to
+	///   restrict exposure to loss due to being offline for too long.
+	///   See [`ChannelHandshakeConfig::our_to_self_delay`] and [`ChannelConfig::cltv_expiry_delta`]
+	///   for more information.
+	///
+	/// Default value: `25`
 	///
+	/// Minimum value: `1` (Any values less will be treated as `1` instead.)
+	///
+	/// Maximum value: `100` (Any values larger will be treated as `100` instead.)
+	pub announced_channel_max_inbound_htlc_value_in_flight_percentage: u8,
+	/// Sets the maximum percentage of the total channel value that can be allocated to inbound
+	/// HTLCs in unannounced channels.
+	///
+	/// This can be set to a value between 1-100, where the value corresponds to the percent of the
+	/// channel value in whole percentages.
+	///
+	/// Note that:
 	/// * This caps the total value for inbound HTLCs in-flight only, and there's currently
 	///   no way to configure the cap for the total value of outbound HTLCs in-flight.
 	///
@@ -82,12 +100,12 @@ pub struct ChannelHandshakeConfig {
 	///   See [`ChannelHandshakeConfig::our_to_self_delay`] and [`ChannelConfig::cltv_expiry_delta`]
 	///   for more information.
 	///
-	/// Default value: `10`
+	/// Default value: `100`
 	///
 	/// Minimum value: `1` (Any values less will be treated as `1` instead.)
 	///
 	/// Maximum value: `100` (Any values larger will be treated as `100` instead.)
-	pub max_inbound_htlc_value_in_flight_percent_of_channel: u8,
+	pub unannounced_channel_max_inbound_htlc_value_in_flight_percentage: u8,
 	/// If set, we attempt to negotiate the `scid_privacy` (referred to as `scid_alias` in the
 	/// BOLTs) option for outbound private channels. This provides better privacy by not including
 	/// our real on-chain channel UTXO in each invoice and requiring that our counterparty only
@@ -246,7 +264,8 @@ impl Default for ChannelHandshakeConfig {
 			minimum_depth: 6,
 			our_to_self_delay: BREAKDOWN_TIMEOUT,
 			our_htlc_minimum_msat: 1,
-			max_inbound_htlc_value_in_flight_percent_of_channel: 10,
+			announced_channel_max_inbound_htlc_value_in_flight_percentage: 25,
+			unannounced_channel_max_inbound_htlc_value_in_flight_percentage: 100,
 			negotiate_scid_privacy: false,
 			announce_for_forwarding: false,
 			commit_upfront_shutdown_pubkey: true,
@@ -264,11 +283,21 @@ impl Default for ChannelHandshakeConfig {
 #[cfg(fuzzing)]
 impl Readable for ChannelHandshakeConfig {
 	fn read<R: crate::io::Read>(reader: &mut R) -> Result<Self, crate::ln::msgs::DecodeError> {
+		let minimum_depth = Readable::read(reader)?;
+		let our_to_self_delay = Readable::read(reader)?;
+		let our_htlc_minimum_msat = Readable::read(reader)?;
+		// Apply the same byte to both the announced and the unannounced maximums so as to
+		// not invalidate the existing fuzz corpus
+		let max_inbound_htlc_value_in_flight_percentage = Readable::read(reader)?;
+
 		Ok(Self {
-			minimum_depth: Readable::read(reader)?,
-			our_to_self_delay: Readable::read(reader)?,
-			our_htlc_minimum_msat: Readable::read(reader)?,
-			max_inbound_htlc_value_in_flight_percent_of_channel: Readable::read(reader)?,
+			minimum_depth,
+			our_to_self_delay,
+			our_htlc_minimum_msat,
+			announced_channel_max_inbound_htlc_value_in_flight_percentage:
+				max_inbound_htlc_value_in_flight_percentage,
+			unannounced_channel_max_inbound_htlc_value_in_flight_percentage:
+				max_inbound_htlc_value_in_flight_percentage,
 			negotiate_scid_privacy: Readable::read(reader)?,
 			announce_for_forwarding: Readable::read(reader)?,
 			commit_upfront_shutdown_pubkey: Readable::read(reader)?,
@@ -1171,9 +1200,15 @@ impl UserConfig {
 /// Config structure for overriding channel handshake parameters.
 #[derive(Default)]
 pub struct ChannelHandshakeConfigUpdate {
-	/// Overrides the percentage of the channel value we will cap the total value of outstanding inbound HTLCs to. See
-	/// [`ChannelHandshakeConfig::max_inbound_htlc_value_in_flight_percent_of_channel`].
-	pub max_inbound_htlc_value_in_flight_percent_of_channel: Option<u8>,
+	/// Overrides the maximum percentage of the total channel value that can be allocated to inbound
+	/// HTLCs in announced channels. See
+	/// [`ChannelHandshakeConfig::announced_channel_max_inbound_htlc_value_in_flight_percentage`].
+	pub announced_channel_max_inbound_htlc_value_in_flight_percentage: Option<u8>,
+
+	/// Overrides the maximum percentage of the total channel value that can be allocated to inbound
+	/// HTLCs in unannounced channels. See
+	/// [`ChannelHandshakeConfig::unannounced_channel_max_inbound_htlc_value_in_flight_percentage`].
+	pub unannounced_channel_max_inbound_htlc_value_in_flight_percentage: Option<u8>,
 
 	/// Overrides the smallest value HTLC we will accept to process. See [`ChannelHandshakeConfig::our_htlc_minimum_msat`].
 	pub htlc_minimum_msat: Option<u64>,
@@ -1199,9 +1234,17 @@ impl ChannelHandshakeConfig {
 	/// Applies the provided handshake config update.
 	pub fn apply(&mut self, config: &ChannelHandshakeConfigUpdate) {
 		if let Some(max_in_flight_percent) =
-			config.max_inbound_htlc_value_in_flight_percent_of_channel
+			config.announced_channel_max_inbound_htlc_value_in_flight_percentage
+		{
+			self.announced_channel_max_inbound_htlc_value_in_flight_percentage =
+				max_in_flight_percent;
+		}
+
+		if let Some(max_in_flight_percent) =
+			config.unannounced_channel_max_inbound_htlc_value_in_flight_percentage
 		{
-			self.max_inbound_htlc_value_in_flight_percent_of_channel = max_in_flight_percent;
+			self.unannounced_channel_max_inbound_htlc_value_in_flight_percentage =
+				max_in_flight_percent;
 		}
 
 		if let Some(htlc_minimum_msat) = config.htlc_minimum_msat {