> ## 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.

# Payouts

## What Is a Payout

A payout is a payment sent from a Grain wallet to an external beneficiary. Payouts can be executed independently or combined with hedging.

A common pattern is to use payouts together with full settlement hedges for scheduled vendor payments: lock a rate by creating a hedge with full settlement, wait for settlement to credit your wallet, then trigger a payout to the vendor. This ensures the payment amount is protected from FX movement between the time of booking and the actual payment date.

Payouts rely on a partner bank for execution and require payout functionality to be enabled in the dashboard before use.

## Payout Lifecycle

1. **In Process** — payout is funded and being processed
2. **Sent** — funds dispatched to partner bank
3. **Paid** — confirmed delivered to beneficiary
4. **Failed** — execution failed
5. **Rejected** — partner bank rejected the payout

Each state transition has allowed next states, associated webhook events, and funding or bank requirements.