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

# Settlements

> Process token distributions and settle vesting events

## Overview

When tokens vest, they need to be settled — meaning the actual tokens are transferred to the recipient's wallet. The settlement process involves tax calculation, approval, and execution through your custody provider.

***

## Settlement Workflow

```mermaid theme={null}
graph TD
    A[Token Vests] --> B[Pending Approval]
    B --> C[Tax Grouping]
    C --> D[Tax Finalization]
    D --> E[Ready for Settlement]
    E --> F[Settlement Execution]
    F --> G[Completed]
```

***

## Step 1: Pending Approval

When vesting events occur, they appear in the **Pending Approval** tab of the Schedule Manager. An admin must approve each vesting before it can proceed.

***

## Step 2: Tax Grouping

After approval, vestings move to **Tax Grouping**. Here you assign tax details:

* **Manual tax**: Enter tax amounts directly
* **Payroll tax**: Use tax details from your payroll provider
* **No tax**: Mark as tax-exempt

***

## Step 3: Tax Finalization

Tax details are reviewed and finalized. Admin can approve or reject tax calculations. Rejected items return to the Tax Grouping stage.

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## Step 4: Ready for Settlement

Vestings with finalized tax details are ready for settlement. You can:

* **Batch settlements** — Process multiple vestings together
* **Select custody provider** — Choose Fireblocks, Anchorage, or Safe
* **Generate settlement documents** — Create proof-of-payment records

***

## Step 5: Execution

The settlement is executed through your connected custody provider:

* **Fireblocks**: Transaction submitted to Fireblocks vault
* **Anchorage**: Transaction submitted to Anchorage
* **Safe**: Multisig transaction created, requiring signer approvals

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## Unified Schedule Manager

The Schedule Manager provides a single interface for the entire settlement flow with 6 tabs:

| Tab                  | Purpose                              |
| -------------------- | ------------------------------------ |
| Distribution Config  | Set FMV mode and variance thresholds |
| Pending Approval     | Approve vesting events               |
| Tax Grouping         | Assign tax details                   |
| Tax Finalization     | Review and finalize tax              |
| Ready for Settlement | Eligible for distribution            |
| Settlements          | Pending and completed settlements    |

***

## Related

<CardGroup cols={2}>
  <Card title="Token Distributions" icon="share-nodes" href="/tga/client/token-distributions">
    Distribution overview and configuration
  </Card>

  <Card title="Custody Integrations" icon="vault" href="/tga/client/custody-overview">
    Set up custody providers for settlement execution
  </Card>
</CardGroup>