Yes, correct, one either keeps a server up with their seed or the mobile does it. In Blink we will have event-driven and likely also periodical refresh built in.

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Honestly why bother? No one uses Spark on the assumption that they can exit or that it’s somehow trustless, the point is that it’s better than custodial and Lightspark is taking on the legal risk instead of someone else. If you actually care about trustless something you’ve gotta do a graduated wallet or LN+Ark.