> ## Documentation Index
> Fetch the complete documentation index at: https://docs.grainfinance.co/llms.txt
> Use this file to discover all available pages before exploring further.

# 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* **Available** — usable funds that can be transferred or withdrawn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