# Commercial terms

Understand the amounts, exchange rate, fees, and expiry returned when a payout is created.

Product: Payment API
Guides follow API reference 0.1.0 and event reference 0.1.0.
Canonical page: https://docs.axiym.io/payment-api/concepts/commercial-terms

Creating a payout establishes its commercial terms: how much is paid from the
funding account, how much the beneficiary receives, the exchange rate, and the
fees. Axiym returns these terms as part of the payment in
`PENDING_CONFIRMATION`.

## The payment and its corridor

When the payout is created, Axiym checks that the selected
[corridor](/payment-api/concepts/corridors) is available and that the payment
amount is within its limits.

The commercial terms apply to that payment, not to other amounts or
destinations. The payment remains subject to validation and approval.

## Amounts, exchange rate, and fees

A payment can be priced around either:

* **The amount to send (`sourceAmount`):** the total debited from the funding
  account, in the funding currency. The fee is part of it. Axiym calculates
  how much the beneficiary receives.
* **The amount to receive (`destinationAmount`):** the amount the beneficiary
  should receive in the destination currency. Axiym calculates the funding
  amount required, fee included.

Supply exactly one of the two when creating the payout. In both cases the
returned payment shows `sourceAmount`, `fee`, `rate`, and `destinationAmount`,
where `destinationAmount = (sourceAmount − fee) × rate`. This makes the
payment's cost and the beneficiary's expected receipt clear before the payment
is confirmed.

## How long the terms apply

The terms are available for confirmation until `termsExpireAt`. Creating the
payout does not reserve or move funds.

At `termsExpireAt`, an unconfirmed payout automatically becomes `CANCELED`
with `reasonCode: TERMS_EXPIRED`. Confirmation after expiry returns `422`.
Create a new payout to obtain new commercial terms.

For request fields, amount selection, and confirmation, see
[Create and confirm a payout](/payment-api/integration-guide/create-a-payout).