diff --git a/core/src/main/java/haveno/core/trade/Trade.java b/core/src/main/java/haveno/core/trade/Trade.java
index 680b568e71..a5aceeca42 100644
--- a/core/src/main/java/haveno/core/trade/Trade.java
+++ b/core/src/main/java/haveno/core/trade/Trade.java
@@ -119,6 +119,7 @@ public abstract class Trade implements Tradable, Model {
 
     private static final String MONERO_TRADE_WALLET_PREFIX = "xmr_trade_";
     private static final long SHUTDOWN_TIMEOUT_MS = 90000;
+    private static final long DELETE_BACKUPS_AFTER_NUM_BLOCKS = 3600; // ~5 days
     private final Object walletLock = new Object();
     private final Object pollLock = new Object();
     private MoneroWallet wallet;
@@ -918,12 +919,9 @@ public abstract class Trade implements Tradable, Model {
                     log.info("Deleting wallet for {} {}", getClass().getSimpleName(), getId());
                     xmrWalletService.deleteWallet(getWalletName());
 
-                    // delete trade wallet backups unless deposits requested and payouts not unlocked
-                    if (isDepositRequested() && !isDepositFailed() && !isPayoutUnlocked()) {
-                        log.warn("Refusing to delete backup wallet for " + getClass().getSimpleName() + " " + getId() + " in the small chance it becomes funded");
-                    } else {
-                        xmrWalletService.deleteWalletBackups(getWalletName());
-                    }
+                    // record delete height and schedule backup deletion
+                    processModel.setDeleteBackupsHeight(xmrConnectionService.getLastInfo().getHeight() + DELETE_BACKUPS_AFTER_NUM_BLOCKS);
+                    maybeScheduleDeleteBackups();
                 } catch (Exception e) {
                     log.warn(e.getMessage());
                     e.printStackTrace();
@@ -1201,6 +1199,9 @@ public abstract class Trade implements Tradable, Model {
 
     private void clearProcessData() {
 
+        // delete backup wallets after main wallet + blocks
+        maybeScheduleDeleteBackups();
+
         // delete trade wallet
         synchronized (walletLock) {
             if (!walletExists()) return; // done if already cleared
@@ -1215,6 +1216,27 @@ public abstract class Trade implements Tradable, Model {
         }
     }
 
+    private void maybeScheduleDeleteBackups() {
+        if (processModel.getDeleteBackupsHeight() == 0) return;
+        if (xmrConnectionService.getLastInfo().getHeight() >= processModel.getDeleteBackupsHeight()) {
+            xmrWalletService.deleteWalletBackups(getWalletName());
+            processModel.setDeleteBackupsHeight(0); // reset delete height
+        } else {
+            MoneroWalletListener deleteBackupsListener = new MoneroWalletListener() {
+                @Override
+                public synchronized void onNewBlock(long height) { // prevent concurrent deletion
+                    if (processModel.getDeleteBackupsHeight() == 0) return;
+                    if (xmrConnectionService.getLastInfo().getHeight() >= processModel.getDeleteBackupsHeight()) {
+                        xmrWalletService.deleteWalletBackups(getWalletName());
+                        processModel.setDeleteBackupsHeight(0); // reset delete height
+                        xmrWalletService.removeWalletListener(this);
+                    }
+                }
+            };
+            xmrWalletService.addWalletListener(deleteBackupsListener);
+        }
+    }
+
     public void maybeClearSensitiveData() {
         String change = "";
         if (removeAllChatMessages()) {
diff --git a/core/src/main/java/haveno/core/trade/protocol/ProcessModel.java b/core/src/main/java/haveno/core/trade/protocol/ProcessModel.java
index 2173da4666..412fd9d424 100644
--- a/core/src/main/java/haveno/core/trade/protocol/ProcessModel.java
+++ b/core/src/main/java/haveno/core/trade/protocol/ProcessModel.java
@@ -135,6 +135,9 @@ public class ProcessModel implements Model, PersistablePayload {
     @Getter
     @Setter
     private String multisigAddress;
+    @Getter
+    @Setter
+    private long deleteBackupsHeight;
 
     // We want to indicate the user the state of the message delivery of the
     // PaymentSentMessage. As well we do an automatic re-send in case it was not ACKed yet.
@@ -179,7 +182,8 @@ public class ProcessModel implements Model, PersistablePayload {
                 .setFundsNeededForTrade(fundsNeededForTrade)
                 .setPaymentSentMessageState(paymentSentMessageStateProperty.get().name())
                 .setBuyerPayoutAmountFromMediation(buyerPayoutAmountFromMediation)
-                .setSellerPayoutAmountFromMediation(sellerPayoutAmountFromMediation);
+                .setSellerPayoutAmountFromMediation(sellerPayoutAmountFromMediation)
+                .setDeleteBackupsHeight(deleteBackupsHeight);
         Optional.ofNullable(maker).ifPresent(e -> builder.setMaker((protobuf.TradePeer) maker.toProtoMessage()));
         Optional.ofNullable(taker).ifPresent(e -> builder.setTaker((protobuf.TradePeer) taker.toProtoMessage()));
         Optional.ofNullable(arbitrator).ifPresent(e -> builder.setArbitrator((protobuf.TradePeer) arbitrator.toProtoMessage()));
@@ -201,6 +205,7 @@ public class ProcessModel implements Model, PersistablePayload {
         processModel.setFundsNeededForTrade(proto.getFundsNeededForTrade());
         processModel.setBuyerPayoutAmountFromMediation(proto.getBuyerPayoutAmountFromMediation());
         processModel.setSellerPayoutAmountFromMediation(proto.getSellerPayoutAmountFromMediation());
+        processModel.setDeleteBackupsHeight(proto.getDeleteBackupsHeight());
 
         // nullable
         processModel.setPayoutTxSignature(ProtoUtil.byteArrayOrNullFromProto(proto.getPayoutTxSignature()));
diff --git a/proto/src/main/proto/pb.proto b/proto/src/main/proto/pb.proto
index 62c6e5d56d..228339107c 100644
--- a/proto/src/main/proto/pb.proto
+++ b/proto/src/main/proto/pb.proto
@@ -1547,6 +1547,7 @@ message ProcessModel {
     bytes mediated_payout_tx_signature = 17; // placeholder if mediation used in future
     int64 buyer_payout_amount_from_mediation = 18;
     int64 seller_payout_amount_from_mediation = 19;
+    int64 delete_backups_height = 31;
 }
 
 message TradePeer {