I remember seeing this in some other documentation, but I didn't read the Alice and Bob story before. Basically Alice offers Bob some of her Fedimint-1 tokens, and Bob's Fedimint-2 issues Bob some tokens after it resolves the transaction over the lightning network. I didn't realize it was seamless, they initially made it sound like your Fedimint-1 tokens could only be used on your local mint, and you had to jump through hoops to transact with someone on another mint. I'm glad that's not the case, so thanks for pointing this out.

My point still stands about potential fractional reserve and losing your sats if you become ostracized by the people running your mint or there is collusion between the guardians.