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

# Funding modes

> Every remittance is funded in one of three ways, chosen in the withdrawal. PREFUNDED and CREDIT use the same quote price. INVENTORY uses the rate of an Inventory Lot contracted in advance.

| | PREFUNDED | CREDIT | INVENTORY |
| - | - | - | - |
| Source of funds | USD balance of the MSB in the US | LB Pay credit line | Volume contracted in an Inventory Lot |
| How it works | Uses USD the MSB already holds in the US. The USD is debited first. The Pix is sent after. | The BRL is advanced through the LB Pay credit line. The Pix does not wait for the USD. | Uses FX volume contracted in advance in an Inventory Lot. The remittance uses the lot rate. |
| Rate fixed at | Quote, used in the withdrawal | Quote, used in the withdrawal | Lot creation (`POST /v1/inventories`) |
| Required in the withdrawal | `quoteId` | `quoteId` | `funding.inventoryId`, `destinationAmount` and `senderQuote`. No `quoteId`. |
| Reserved at | Withdrawal | Withdrawal | Withdrawal, in the lot balance |
| Funding cost | None | Set in the agreement and charged in the daily settlement batch. It does not change the BRL amount. | In definition. See [USDC Inventory](https://developers.javalibridge.com/en/guides/inventory.md). |
| Creates an obligation | No | Yes, a settlement to be paid by the due date | Yes, a USDC payment promise created with the lot |
| Limit shown | USD balance available in the US | Credit line: used, reserved and available | Lot balance: available, reserved and used |
| When it fits | Lowest cost when the MSB keeps USD in the US | Send without pre-positioning funds | Lock rate and volume in advance |

## How credit settlement works

* Each remittance funded by credit uses part of the consolidated credit line and creates an obligation to repay.
* Obligations are grouped into one daily batch per due date. All credit remittances due on the same day are in the same batch, including those created on weekends.
* You make one payment per day. To see what you pay today, open the batch with today’s due date.
* The batch stays `OPEN` while it collects remittances. At the cut-off it becomes `CLOSED` and the amount no longer changes. On the due date it becomes `DUE`.
* Remittances created after the cut-off go into the next batch.
* Returned or held remittances stay in the batch. The BRL goes to your BRL Wallet.
* When usage of the credit line reaches 70%, 90% and 100%, you are notified.
* Settlement term, currency and cut-off time: \[A DEFINIR em contrato].

> [!TIP]
>
> **What you do**
>
> * `PREFUNDED`: keep USD available in your balance in the US.
> * `CREDIT`: pay the batch due today, once a day.
> * Watch the 70%, 90% and 100% credit alerts.
> * `INVENTORY`: inform the lot in `funding.inventoryId` and check its available balance.


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