Where should wallets explain the differences between on-chain Bitcoin and Lightning?

Labelling the payment type directly on the confirmation screen significantly reduces user confusion, as most misunderstandings arise during the actual process of sending payments rather than at the setup stage. This approach ensures that users have clear and immediate information at the critical moment, helping them make informed decisions.

Additionally, including a reminder about Lightning recovery within the recovery instructions is crucial. Users are most likely to need this information precisely when they are following these instructions, so reiterating the caveat at this stage provides timely guidance and prevents potential mistakes. Both practices aim to enhance clarity and support for users by delivering important information exactly when it is needed most.