diff --git a/blockstore/splitstore/splitstore.go b/blockstore/splitstore/splitstore.go
index 7477fb20d..25b906750 100644
--- a/blockstore/splitstore/splitstore.go
+++ b/blockstore/splitstore/splitstore.go
@@ -530,23 +530,32 @@ func (s *SplitStore) warmup(curTs *types.TipSet) {
 
 // Compaction/GC Algorithm
 func (s *SplitStore) compact(curTs *types.TipSet) {
+	var err error
 	if s.markSetSize == 0 {
 		start := time.Now()
 		log.Info("estimating mark set size")
-		s.estimateMarkSetSize(curTs)
+		err = s.estimateMarkSetSize(curTs)
+		if err != nil {
+			log.Errorf("error estimating mark set size: %s; aborting compaction", err)
+			return
+		}
 		log.Infow("estimating mark set size done", "took", time.Since(start), "size", s.markSetSize)
 	} else {
 		log.Infow("current mark set size estimate", "size", s.markSetSize)
 	}
 
 	if s.fullCompaction {
-		s.compactFull(curTs)
+		err = s.compactFull(curTs)
 	} else {
-		s.compactSimple(curTs)
+		err = s.compactSimple(curTs)
+	}
+
+	if err != nil {
+		log.Errorf("COMPACTION ERROR: %s", err)
 	}
 }
 
-func (s *SplitStore) estimateMarkSetSize(curTs *types.TipSet) {
+func (s *SplitStore) estimateMarkSetSize(curTs *types.TipSet) error {
 	var count int64
 	err := s.chain.WalkSnapshot(context.Background(), curTs, 1, s.skipOldMsgs, s.skipMsgReceipts,
 		func(cid cid.Cid) error {
@@ -555,14 +564,14 @@ func (s *SplitStore) estimateMarkSetSize(curTs *types.TipSet) {
 		})
 
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return err
 	}
 
 	s.markSetSize = count + count>>2 // overestimate a bit
+	return nil
 }
 
-func (s *SplitStore) compactSimple(curTs *types.TipSet) {
+func (s *SplitStore) compactSimple(curTs *types.TipSet) error {
 	coldEpoch := s.baseEpoch + CompactionCold
 	currentEpoch := curTs.Height()
 	boundaryEpoch := currentEpoch - CompactionBoundary
@@ -571,19 +580,17 @@ func (s *SplitStore) compactSimple(curTs *types.TipSet) {
 
 	coldSet, err := s.env.Create("cold", s.markSetSize)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error creating mark set: %w", err)
 	}
 	defer coldSet.Close() //nolint:errcheck
 
 	// 1. mark reachable cold objects by looking at the objects reachable only from the cold epoch
-	log.Infow("marking reachable cold objects", "boundaryEpoch", boundaryEpoch)
+	log.Infow("marking reachable cold blocks", "boundaryEpoch", boundaryEpoch)
 	startMark := time.Now()
 
 	boundaryTs, err := s.chain.GetTipsetByHeight(context.Background(), boundaryEpoch, curTs, true)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error getting tipset at boundary epoch: %w", err)
 	}
 
 	var count int64
@@ -594,8 +601,7 @@ func (s *SplitStore) compactSimple(curTs *types.TipSet) {
 		})
 
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error marking cold blocks: %w", err)
 	}
 
 	if count > s.markSetSize {
@@ -640,8 +646,7 @@ func (s *SplitStore) compactSimple(curTs *types.TipSet) {
 	})
 
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error collecting cold objects: %w", err)
 	}
 
 	if coldCnt > 0 {
@@ -658,16 +663,15 @@ func (s *SplitStore) compactSimple(curTs *types.TipSet) {
 	// check to see if we are closing first; if that's the case just return
 	if atomic.LoadInt32(&s.closing) == 1 {
 		log.Info("splitstore is closing; aborting compaction")
-		return
+		return xerrors.Errorf("compaction aborted")
 	}
 
 	// 2.2 copy the cold objects to the coldstore
-	log.Info("moving cold objects to the coldstore")
+	log.Info("moving cold blocks to the coldstore")
 	startMove := time.Now()
 	err = s.moveColdBlocks(cold)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error moving cold blocks: %w", err)
 	}
 	log.Infow("moving done", "took", time.Since(startMove))
 
@@ -676,8 +680,7 @@ func (s *SplitStore) compactSimple(curTs *types.TipSet) {
 	startPurge := time.Now()
 	err = s.purgeBlocks(cold)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error purging cold blocks: %w", err)
 	}
 	log.Infow("purging cold from hotstore done", "took", time.Since(startPurge))
 
@@ -686,28 +689,27 @@ func (s *SplitStore) compactSimple(curTs *types.TipSet) {
 	log.Info("purging cold objects from tracker")
 	err = s.purgeTracking(cold)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error purging tracking for cold blocks: %w", err)
 	}
 	log.Infow("purging cold from tracker done", "took", time.Since(startPurge))
 
 	// we are done; do some housekeeping
 	err = s.tracker.Sync()
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error syncing tracker: %w", err)
 	}
 
 	err = s.setBaseEpoch(coldEpoch)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error saving base epoch: %w", err)
 	}
 
 	err = s.ds.Put(markSetSizeKey, int64ToBytes(s.markSetSize))
 	if err != nil {
-		log.Errorf("error saving mark set size: %s", err)
+		return xerrors.Errorf("error saving mark set size: %w", err)
 	}
+
+	return nil
 }
 
 func (s *SplitStore) moveColdBlocks(cold []cid.Cid) error {
@@ -782,7 +784,7 @@ func (s *SplitStore) purgeTracking(cids []cid.Cid) error {
 	return s.purgeBatch(cids, s.tracker.DeleteBatch)
 }
 
-func (s *SplitStore) compactFull(curTs *types.TipSet) {
+func (s *SplitStore) compactFull(curTs *types.TipSet) error {
 	currentEpoch := curTs.Height()
 	coldEpoch := s.baseEpoch + CompactionCold
 	boundaryEpoch := currentEpoch - CompactionBoundary
@@ -793,27 +795,24 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	// and one for marking the hot region
 	hotSet, err := s.env.Create("hot", s.markSetSize)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error creating hot mark set: %w", err)
 	}
 	defer hotSet.Close() //nolint:errcheck
 
 	coldSet, err := s.env.Create("cold", s.markSetSize)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error creating cold mark set: %w", err)
 	}
 	defer coldSet.Close() //nolint:errcheck
 
 	// Phase 1: marking
-	log.Info("marking live objects")
+	log.Info("marking live blocks")
 	startMark := time.Now()
 
 	// Phase 1a: mark all reachable CIDs in the hot range
 	boundaryTs, err := s.chain.GetTipsetByHeight(context.Background(), boundaryEpoch, curTs, true)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error getting tipset at boundary epoch: %w", err)
 	}
 
 	count := int64(0)
@@ -824,8 +823,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 		})
 
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error marking hot blocks: %w", err)
 	}
 
 	if count > s.markSetSize {
@@ -835,8 +833,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	// Phase 1b: mark all reachable CIDs in the cold range
 	coldTs, err := s.chain.GetTipsetByHeight(context.Background(), coldEpoch, curTs, true)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error getting tipset at cold epoch: %w", err)
 	}
 
 	count = 0
@@ -847,8 +844,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 		})
 
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error marking cold blocks: %w", err)
 	}
 
 	if count > s.markSetSize {
@@ -921,8 +917,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	})
 
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error collecting cold objects: %w", err)
 	}
 
 	if coldCnt > 0 {
@@ -942,7 +937,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	// check to see if we are closing first; if that's the case just return
 	if atomic.LoadInt32(&s.closing) == 1 {
 		log.Info("splitstore is closing; aborting compaction")
-		return
+		return xerrors.Errorf("compaction aborted")
 	}
 
 	// 2.2 copy the cold objects to the coldstore
@@ -950,8 +945,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	startMove := time.Now()
 	err = s.moveColdBlocks(cold)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error moving cold blocks: %w", err)
 	}
 	log.Infow("moving done", "took", time.Since(startMove))
 
@@ -960,8 +954,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	startPurge := time.Now()
 	err = s.purgeBlocks(cold)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error purging cold blocks: %w", err)
 	}
 	log.Infow("purging cold from hotstore done", "took", time.Since(startPurge))
 
@@ -970,8 +963,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	log.Info("purging cold objects from tracker")
 	err = s.purgeTracking(cold)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error purging tracking for cold blocks: %w", err)
 	}
 	log.Infow("purging cold from tracker done", "took", time.Since(startPurge))
 
@@ -980,8 +972,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 		log.Info("deleting dead objects")
 		err = s.purgeBlocks(dead)
 		if err != nil {
-			// TODO do something better here
-			panic(err)
+			return xerrors.Errorf("error purging dead blocks: %w", err)
 		}
 
 		// remove the tracker tracking
@@ -989,8 +980,7 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 		log.Info("purging dead objects from tracker")
 		err = s.purgeTracking(dead)
 		if err != nil {
-			// TODO do something better here
-			panic(err)
+			return xerrors.Errorf("error purging tracking for dead blocks: %w", err)
 		}
 		log.Infow("purging dead from tracker done", "took", time.Since(startPurge))
 	}
@@ -998,20 +988,20 @@ func (s *SplitStore) compactFull(curTs *types.TipSet) {
 	// we are done; do some housekeeping
 	err = s.tracker.Sync()
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error syncing tracker: %w", err)
 	}
 
 	err = s.setBaseEpoch(coldEpoch)
 	if err != nil {
-		// TODO do something better here
-		panic(err)
+		return xerrors.Errorf("error saving base epoch: %w", err)
 	}
 
 	err = s.ds.Put(markSetSizeKey, int64ToBytes(s.markSetSize))
 	if err != nil {
-		log.Errorf("error saving mark set size: %s", err)
+		return xerrors.Errorf("error saving mark set size: %w", err)
 	}
+
+	return nil
 }
 
 func (s *SplitStore) setBaseEpoch(epoch abi.ChainEpoch) error {