Settlements
Full Settlement vs Offset Settlement
The settlement type determines how funds flow between you and Grain when a hedge matures. This is configured during onboarding and is a key commercial decision.
Full Settlement
Grain owns the flow of funds. At maturity, the full notional is exchanged — Grain debits the source currency from your wallet and credits the target currency. Your wallet must be funded ahead of settlement.
Full settlement pairs naturally with payouts: lock a rate via a hedge, let settlement credit your wallet, then trigger a payout to your vendor. This creates an end-to-end flow from FX execution through to payment.
Example: You hedge €100,000 at EUR/USD 1.10. At settlement, Grain debits $110,000 from your USD wallet and credits €100,000 to your EUR wallet. You can then pay your supplier directly from the EUR wallet.
Offset Settlement
Grain owns only the FX risk — not the flow of funds. At maturity, Grain settles only the net difference between the hedge rate and the current spot rate. You handle the underlying payment yourself through your own banking channels.
Example: Same hedge — €100,000 at EUR/USD 1.10. At settlement, spot is 1.12. Grain credits $2,000 to your wallet (the difference of €100k × $0.02). No physical currency delivery occurs.
Which to choose
| Full Settlement | Offset Settlement | |
|---|---|---|
| Grain Role | FX execution + currency delivery | FX risk management only |
| Wallet Funding | Required before settlement | Minimal — only net difference |
| Payment Flow | Grain → your wallet → payout to vendor | You pay vendors independently |
| Best For | Partners who want Grain to handle the full payment chain | Partners who manage their own payment flows and want FX protection only |
Settlement Cycles
For offset settlement, Grain can perform bulk settlement on a set cadence agreed with the partner. Common cycles include:
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Weekly — net offset positions are settled once per week
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Bi-weekly — settlement every two weeks
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Monthly — settlement once per calendar month
The cycle is configured during onboarding and determines when Grain aggregates and settles all offset positions for the period. Partners should ensure their wallets are funded ahead of each settlement date.
Early Drawdown
Early drawdown allows settling a hedge before the maturity date.
Characteristics:
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Hedge must be active
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P&L is realized earlier than planned maturity
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API requires specifying drawdown amount and settlement instructions
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Pricing reflects the early settlement date