diff --git a/docs/api/endpoints.md b/docs/api/endpoints.md
index dfd619f2..9c7430a9 100644
--- a/docs/api/endpoints.md
+++ b/docs/api/endpoints.md
@@ -486,34 +486,87 @@ Authorization: Bearer sk-...
 }
 ```
 
-### Withdraw Funds
+### Refund Balance
 
-Withdraw balance as eCash.
+Pay out the remaining balance and close the key. The payout goes to a Lightning address when one is given (in the request or stored on the key), otherwise a Cashu token is returned.
 
 ```http
-POST /v1/wallet/withdraw
+POST /v1/balance/refund
 Authorization: Bearer sk-...
+Content-Type: application/json
 ```
 
-**Request Body:**
+`/v1/wallet/refund` is a deprecated alias.
+
+**Request Body** (optional):
 
 ```json
 {
-  "amount": 5000,
-  "mint": "https://mint.example.com"
+  "lightning_address": "user@getalby.com"
 }
 ```
 
-**Response:**
+**Parameters:**
+
+| Parameter | Type | Required | Default | Description |
+|-----------|------|----------|---------|-------------|
+| `lightning_address` | string | No | Key's stored refund address | Lightning address or LNURL to pay. Overrides the stored address for this request. Resolved before any balance is debited. |
+
+**Response (Lightning):**
 
 ```json
 {
-  "cashu_token": "cashuAeyJ0...",
-  "amount": 5000,
-  "mint": "https://mint.example.com"
+  "refund_id": "3f9c1e2d8b7a4c6e9f0a1b2c3d4e5f60",
+  "status": "paid",
+  "recipient": "user@getalby.com",
+  "sats": "4500"
 }
 ```
 
+**Response (Cashu):**
+
+```json
+{
+  "refund_id": "3f9c1e2d8b7a4c6e9f0a1b2c3d4e5f60",
+  "status": "paid",
+  "token": "cashuAeyJ0...",
+  "sats": "4500"
+}
+```
+
+The amount field is `sats` or `msats` depending on the key's refund currency.
+
+**Behaviour:**
+
+- The balance is debited and a refund claim is recorded before the payout is attempted. A key has at most one open claim at a time.
+- If the payout fails cleanly, the claim is closed and the balance is restored. Retry the request.
+- If the Lightning payment is dispatched but the mint cannot confirm the outcome, the request returns `502`, the balance stays withheld, and a background reconciler asks the mint until it answers. The balance is restored if the mint reports the payment unpaid.
+- Calling again on a zero-balance key returns the last paid Lightning refund, or the previously issued Cashu token while it remains uncollected.
+
+**Errors:**
+
+| Status | Meaning |
+|--------|---------|
+| `400` | Invalid Lightning destination, no balance, or balance too small for the refund unit |
+| `400` | Ongoing requests are still reserving balance on this key |
+| `401` | Unknown key |
+| `409` | Balance changed concurrently. Retry. |
+| `409` | `refund_in_progress`: another refund claim for this key is still open |
+| `410` | Previously issued Cashu refund token has been swept |
+| `502` | Payment dispatched, outcome unconfirmed. Balance withheld pending reconciliation. Do not retry. |
+| `503` | Mint unavailable. Balance restored. Retry later. |
+
+**X-Cashu refunds:**
+
+Requests paid per-call with an `X-Cashu` header get their change from this endpoint by sending the same header instead of `Authorization`:
+
+```http
+POST /v1/balance/refund
+X-Cashu: cashuAeyJ0...
+```
+
+Returns the change token in the body and in an `X-Cashu` response header. `404` if no matching request exists, `425` while the change is still being minted, `410` if it was swept.
+
 ## Provider Discovery
 
 ## Admin Settings