60 obligations → 10 net settlements through the clearing house
0 / 10Net movements
0 €Total debtor settlements
Company perspective · 9W cycle
Netting reduces the cash needed for settlement. Collateral protects the cycle. The final net amount concentrates the cash outflow actually required.
Educational example
Commercial obligations within the cycle40 k€
Locked collateral15 k€
Obligations / collateral ratio—
Final net settlement± 5 k€
Gross settlement requirement without netting40 k€
Final requirement after netting5 k€
Collateral remains locked during the cycle. Netting reduces the settlement cash outflow.
87.5 %of the settlement cash requirement is eliminated
40 k€ → 5 k€ 35 k€ of cash outflow avoided in this example.
CFO perspective
Gross cash required without netting40 k€
Net cash required with netting5 k€
Settlement cash outflow avoided35 k€
Share of gross requirement remaining12.5 %
Multilateral netting reduces settlement liquidity needs. It supports cash management and improves visibility over the commercial cycle.
Two layers, two distinct functions
Collateral secured on Ethereum · Obligations recorded and netted on Sei
◆ Ethereum
Programmable escrow contract
15 000 €
The company’s own collateral is locked during the 9W cycle to secure its exposure, within the specified coverage limit.
↔ Solvency check and reconciliation
● Sei
Canonical obligations ledger · Netting
40 000 €
Commercial obligations in the 9W cycle, netted to arrive at a net position of ± 5 000 €.
Ethereum secures collateral. Sei records and nets obligations. Each company secures its exposure with its own escrow during the cycle.
Individual illustrative example, separate from the 10-company network example. The 40 000 / 15 000 ratio expresses cumulative volume, not authorised instantaneous exposure.
Collateral efficiency · 9W cycle
Ratio of cumulative volume processed, separate from instantaneous net exposure
2.67×
40 000 € of obligations ÷ 15 000 € of collateral = 2.67 € of obligations per euro locked
Cycle obligations
40 000 €
Locked collateral
15 000 €
Final net settlement
± 5 000 €
▶ Start the demonstration to reveal the three amounts.
Illustrative company example: 87.5 % of the gross settlement requirement is netted (35 000 € out of 40 000 €). Collateral remains locked; it must cover instantaneous net exposure under the protocol rules. The 2.67× ratio describes cumulative volume, not leverage.
Educational illustration, fictional amounts. 60 bilateral payments = 418 000 €; 10 net movements = 25 000 € paid to the clearing house and 25 000 € redistributed. The algebraic sum of the ten net positions is zero.
An obligation remains in the ledger; netting it reduces the monetary transfers needed for settlement. The flows shown here describe multilateral netting, without prescribing the technical settlement method.