Skip to main content

​
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 2,000toyourwallet(thedifferenceof€100k×2,000 to your wallet (the difference of €100k × 0.02). No physical currency delivery occurs.

​
Which to choose

​
Settlement Cycles

For offset settlement, Grain can perform bulk settlement on a set cadence agreed with the partner. Common cycles include:
  • Weekly — net offset positions are settled once per week
  • Bi-weekly — settlement every two weeks
  • 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.

​
Drawdowns

A drawdown settles part of a hedge before maturity, leaving the rest of the hedge in place. On a flexible hedge, every drawdown settles at the rate the hedge was booked at. A drawdown can be for any amount up to the hedge’s full remaining balance, and a hedge can be drawn down as many times as needed. Each drawdown is accepted immediately and settles on the next business day. Drawing a hedge down to zero is optional. Whatever remains at maturity settles on the hedge’s original due date, as it would on any hedge. A €100,000 budget hedged at 1.10, drawn down twice:

​
Drawdown Statuses

A drawdown carries its own status, separate from the hedge’s:
  • In Process — accepted, settlement not yet complete
  • Completed — settled successfully
The hedge stays Active while drawdowns are taken against it, until its full amount is consumed or it reaches maturity.