Bitcoin Forum

I went back through the forums and could not find a detailed explanation of the following.

If I setup a 2-3 Multisig Wallet  to be handled between 3 owners.

What is the backup and recovery process?

We have copied down the seeds, but are not clear with regards to the following.

1.  If 2 of the wallets are lost or unrecoverable does this mean the funds are locked and unrecoverable?

2.  Can the privatekey from one of the wallets be exported and then swept into a new standard wallet?

3. I am assuming the normal restore for a recovery wallet, is Restore>Multibit > Seed and pubkeys of cosigners?

4. Can anyone recommend best practices for backing up multi-sig wallets, we are concerned with a scenario where 2 of the signers are incapacitated or lose their wallets, what would be a recovery process or fallback.  At same time don't want to create an attack vector by having the backups in a single location.

The transaction has to be signed with the minimum specified signatures for it to be valid. Hence,
1. Yes. For 2 of 3 multisig wallets, the minimum signature is 2. If 2 of the keys are lost, the funds would be trapped since any transaction cannot be valid without at least 2 signatures.
2. Yes. The addresses from the wallets are still usable.
3. I'm actually rather confused with what you mean by "recover wallet" and you mentioning "Multibit" Electrum sub forum :D.
But yes. If you want to restore the multisig address on your Electrum, use the restore/import option then select multisig.
4. For n-of-m multisigs, increase the m value and give it to more individuals. You will have more fallback in this case.

Thanks, yes Multi-sig not Multibit  :P  late night typo.

4. Is great suggestion, if we do 2 of 4, the 4th key could be held by an attorney or trust agent.

Thanks again.