# What is a Liquid peg-out?

Source URL: https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-a-liquid-peg-out
Updated: 2026-04-09T09:37:51.000Z
Category: Liquid Network
Section: FAQs

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The [Liquid Network](https://glossary.blockstream.com/liquid-network/) is a Bitcoin [layer-2](https://glossary.blockstream.com/layer-2/) solution and sidechain, which means that bitcoin (BTC) can be transferred from the Bitcoin mainchain to the Liquid sidechain (“peg-in”) and back again (“peg-out”).

BTC transferred to the sidechain are known as Liquid Bitcoins (LBTC) and operate on a different security model to BTC on the mainchain.

**The number of LBTC on the Liquid Network always verifiably matches the number of BTC locked on the mainchain one-to-one.**

## How Peg-Outs Work

Only Liquid Federation members can initiate a peg-out. The peg-out process involves burning (destroying) LBTC held by the member on the sidechain to release an equal amount of BTC locked on the mainchain.

A peg-out requires two confirmations on the Liquid sidechain, after which the BTC can be sent from the Liquid Federation's mainchain multisig wallet to a whitelisted [address](https://glossary.blockstream.com/address-bitcoin/) held by the federation member performing the peg-out. The Liquid Federation’s wallet processes these peg-out transactions in batches on a regular basis (variable 20-60 minute intervals).

![Picture1.png](https://dxp-backend.devserver.app/uploads/help-center/content/liquid-network/faqs/what-is-a-liquid-peg-out/900002076686.png)

Whitelisted addresses are used as a failsafe to ensure that the federation always remains in full control of the BTC held by the Liquid Network.

## Alternatives to Peg-Outs

While only Liquid Federation members can perform a peg-out, there are [many alternative ways to convert LBTC to BTC](https://helpcenter.dxp-frontend.devserver.app/liquid-network/acquire-lbtc/convert-lbtc-to-btc), for example, [converting through a Liquid Federation member or swapping LBTC for BTC with another Liquid user](https://helpcenter.dxp-frontend.devserver.app/liquid-network/use-liquid-integrated-tools/platforms-supported-by-the-liquid-network).

## Peg-Ins

[Anyone can perform a peg-in with a Liquid node](https://helpcenter.dxp-frontend.devserver.app/liquid-network/perform-advanced-liquid-operations/peg-in-btc-to-the-liquid-network). The [peg-in process](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-a-liquid-peg-in) involves sending BTC over the Bitcoin network to a peg-in address that is controlled by the Liquid Federation, which allows the user to claim LBTC on the Liquid sidechain after a long waiting period.

Navigation: Blockstream Help Center > Liquid Network > What is a Liquid peg-out?

## Related Articles in This Section
- [How many confirmations are needed for my Liquid transaction to be secure?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/how-many-confirmations-are-needed-for-my-liquid-transaction-to-be-secure)
- [What is the Liquid Network?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-the-liquid-network)
- [What is the Liquid Federation?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-the-liquid-federation)
- [How does Liquid Bitcoin (LBTC) work?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/how-does-liquid-bitcoin-lbtc-work)
- [What is a Liquid peg-in?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-a-liquid-peg-in)
- [What is a Liquid peg-out?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-a-liquid-peg-out) (current)
- [What are Liquid assets?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-are-liquid-assets)
- [How does the Liquid Federation's multisig work?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/how-does-the-liquid-federations-multisig-work)
- [How does Liquid keep my transaction data confidential?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/how-does-liquid-keep-my-transaction-data-confidential)
- [How do transaction fees on Liquid work?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/how-do-transaction-fees-on-liquid-work)
- [What is the transaction capacity of Liquid?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-the-transaction-capacity-of-liquid)
- [Does a Liquid address support all types of assets?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/does-a-liquid-address-support-all-types-of-assets)
- [What are the different types of participants in the Liquid Network?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-are-the-different-types-of-participants-in-the-liquid-network)
- [What is a Liquid Network functionary?](https://helpcenter.dxp-frontend.devserver.app/liquid-network/faqs/what-is-a-liquid-network-functionary)