diff --git a/ddk-manager/src/dlc_input.rs b/ddk-manager/src/dlc_input.rs
index 3c11810..6a50ce5 100644
--- a/ddk-manager/src/dlc_input.rs
+++ b/ddk-manager/src/dlc_input.rs
@@ -10,6 +10,14 @@ use crate::{
     contract::Contract, error::Error, ContractId, ContractSigner, ContractSignerProvider, Storage,
 };
 
+/// Check if unconfirmed (Signed) contracts are allowed for DLC input signing.
+/// Set DDK_ALLOW_UNCONFIRMED_SPLICE=true to enable 0-conf splice operations.
+fn allow_unconfirmed_splice() -> bool {
+    std::env::var("DDK_ALLOW_UNCONFIRMED_SPLICE")
+        .map(|v| v.to_lowercase() == "true" || v == "1")
+        .unwrap_or(false)
+}
+
 // todo: definitely test
 /// Get the DlcInputInfo from FundingInputs
 pub fn get_dlc_inputs_from_funding_inputs(funding_inputs: &[FundingInput]) -> Vec<DlcInputInfo> {
@@ -44,8 +52,18 @@ where
             "Contract not found to sign DLC input.".to_string(),
         ))?;
 
+    // Extract keys_id from contract based on state.
+    // By default, only Confirmed contracts are allowed for DLC input signing.
+    // Set DDK_ALLOW_UNCONFIRMED_SPLICE=true to also allow Signed contracts
+    // (funding tx in mempool but not yet confirmed). Useful for testnets and 0-conf operations.
     let key_id = match contract {
         Contract::Confirmed(c) => Ok(c.accepted_contract.offered_contract.keys_id),
+        Contract::Signed(s) if allow_unconfirmed_splice() => {
+            Ok(s.accepted_contract.offered_contract.keys_id)
+        }
+        Contract::Signed(_) => Err(Error::InvalidState(
+            "Contract must be confirmed to sign DLC input. Set DDK_ALLOW_UNCONFIRMED_SPLICE=true for 0-conf splice.".to_string(),
+        )),
         _ => Err(Error::InvalidState(
             "Contract must be confirmed to sign DLC input.".to_string(),
         )),