Skip to main content

Funding & Wallets

Functional Currency​

A company's accounting currency (e.g., EUR for a European company). The key implication in Grain is that all hedge settlements can be directed to the functional currency wallet instead of the To Currency — allowing the company to receive proceeds in its home accounting currency regardless of the currency pair being hedged.

Wallets​

Wallets are central to hedge settlement, payout funding, and early drawdown funding. Each wallet represents a currency-specific ledger.

Wallet Balance formula: Total = Available + Pending + Held

  • Available — usable funds that can be transferred or withdrawn

  • Pending — incoming or outgoing, not yet settled

  • Held — funds reserved for hedges or payouts

Fund Transfers​

Fund transfers are ledger entries that record the movement of funds in and out of wallets. Every transfer creates a debit or credit on a wallet's balance, and the wallet's total balance is the sum of all its transfer records.

Transfer types:

  1. Deposits — incoming funds from an external bank account into a Grain wallet
  2. Settlement Funding — debit or credit entries created when a hedge settles. Debit when funds are taken from the wallet to settle, credit when settlement proceeds are received
  3. Payouts — funds sent from a Grain wallet to an external beneficiary (vendor, supplier, customer)
  4. Withdrawals — funds moved out of a Grain wallet back to the organization's own bank account
  5. Currency Exchange (Spot) — immediate conversion between two currency wallets, debiting one and crediting the other