diff --git a/loopd/swapclient_server.go b/loopd/swapclient_server.go
index d0e1e32..1e3f925 100644
--- a/loopd/swapclient_server.go
+++ b/loopd/swapclient_server.go
@@ -34,6 +34,12 @@ const (
 	minConfTarget = 2
 )
 
+var (
+	// errConfTargetTooLow is returned when the chosen confirmation target
+	// is below the allowed minimum.
+	errConfTargetTooLow = errors.New("confirmation target too low")
+)
+
 // swapClientServer implements the grpc service exposed by loopd.
 type swapClientServer struct {
 	network          lndclient.Network
@@ -58,13 +64,6 @@ func (s *swapClientServer) LoopOut(ctx context.Context,
 
 	log.Infof("Loop out request received")
 
-	sweepConfTarget, err := validateConfTarget(
-		in.SweepConfTarget, loop.DefaultSweepConfTarget,
-	)
-	if err != nil {
-		return nil, err
-	}
-
 	var sweepAddr btcutil.Address
 	if in.Dest == "" {
 		// Generate sweep address if none specified.
@@ -83,8 +82,9 @@ func (s *swapClientServer) LoopOut(ctx context.Context,
 		}
 	}
 
-	// Check that the label is valid.
-	if err := labels.Validate(in.Label); err != nil {
+	sweepConfTarget, err := validateLoopOutRequest(in.SweepConfTarget,
+		in.Label)
+	if err != nil {
 		return nil, err
 	}
 
@@ -894,8 +894,9 @@ func validateConfTarget(target, defaultTarget int32) (int32, error) {
 
 	// Ensure the target respects our minimum threshold.
 	case target < minConfTarget:
-		return 0, fmt.Errorf("a confirmation target of at least %v "+
-			"must be provided", minConfTarget)
+		return 0, fmt.Errorf("%w: A confirmation target of at "+
+			"least %v must be provided", errConfTargetTooLow,
+			minConfTarget)
 
 	default:
 		return target, nil
@@ -920,3 +921,14 @@ func validateLoopInRequest(htlcConfTarget int32, external bool) (int32, error) {
 
 	return validateConfTarget(htlcConfTarget, loop.DefaultHtlcConfTarget)
 }
+
+// validateLoopOutRequest validates the confirmation target and label of the
+// loop out request.
+func validateLoopOutRequest(confTarget int32, label string) (int32, error) {
+	// Check that the label is valid.
+	if err := labels.Validate(label); err != nil {
+		return 0, err
+	}
+
+	return validateConfTarget(confTarget, loop.DefaultSweepConfTarget)
+}
diff --git a/loopd/swapclient_server_test.go b/loopd/swapclient_server_test.go
index 5ad3718..418eb36 100644
--- a/loopd/swapclient_server_test.go
+++ b/loopd/swapclient_server_test.go
@@ -1,9 +1,24 @@
 package loopd
 
 import (
+	"errors"
 	"testing"
 
+	"github.com/btcsuite/btcd/chaincfg"
+	"github.com/btcsuite/btcutil"
 	"github.com/lightninglabs/loop"
+	"github.com/lightninglabs/loop/labels"
+	"github.com/stretchr/testify/require"
+)
+
+var (
+	testnetAddr, _ = btcutil.NewAddressScriptHash(
+		[]byte{123}, &chaincfg.TestNet3Params,
+	)
+
+	mainnetAddr, _ = btcutil.NewAddressScriptHash(
+		[]byte{123}, &chaincfg.MainNetParams,
+	)
 )
 
 // TestValidateConfTarget tests all failure and success cases for our conf
@@ -143,3 +158,50 @@ func TestValidateLoopInRequest(t *testing.T) {
 		})
 	}
 }
+
+// TestValidateLoopOutRequest tests validation of loop out requests.
+func TestValidateLoopOutRequest(t *testing.T) {
+	tests := []struct {
+		name           string
+		confTarget     int32
+		label          string
+		err            error
+		expectedTarget int32
+	}{
+		{
+			name:           "invalid label",
+			label:          labels.Reserved,
+			confTarget:     2,
+			err:            labels.ErrReservedPrefix,
+			expectedTarget: 0,
+		},
+		{
+			name:           "invalid conf target",
+			label:          "label ok",
+			confTarget:     1,
+			err:            errConfTargetTooLow,
+			expectedTarget: 0,
+		},
+		{
+			name:           "default conf target",
+			label:          "label ok",
+			confTarget:     0,
+			err:            nil,
+			expectedTarget: 9,
+		},
+	}
+
+	for _, test := range tests {
+		test := test
+
+		t.Run(test.name, func(t *testing.T) {
+			t.Parallel()
+
+			conf, err := validateLoopOutRequest(
+				test.confTarget, test.label,
+			)
+			require.True(t, errors.Is(err, test.err))
+			require.Equal(t, test.expectedTarget, conf)
+		})
+	}
+}