Edit Target Balance

The Edit Target Balance feature in the ModernFi Admin Portal lets your institution manage how much it aims to receive from the deposit network each day. This amount, called the Target Balance, represents the maximum amount of deposits your institution is willing to receive. Allocations are managed daily to meet your institution’s demand within the limits you set.

Your institution can choose between a Static Target Balance, which remains constant, or a Dynamic Target Balance that adjusts automatically based on your institution's sweep activity.

Setting a Static Target Balance

Static Target Balances allow your institution to manage your Receive Program independently of your Sweep Program, serving as an absolute cap to the amount of deposits you wish to receive from the network. To submit a new target balance, go to Manage Program → Edit Target Balance → Static Target Balance, enter the desired amount, and click Confirm. Your new Target Balance will appear at the header of of your Receive Program.

Setting a Dynamic Target Balance

Dynamic Target Balance allows you to automatically adjust your target receive balance based on your sweep activity, eliminating the need to manually update your target balance as your sweep balance changes.

With Dynamic Target Balance enabled, your Target Balance automatically adjusts in real-time as the total balance your bank is sweeping into the network changes. Through this functionality, you define your desired balance as a spread relative to the total sweep balance, rather than as a fixed dollar amount.

Configuring a Dynamic Target Balance

To set a Dynamic Target Balance, go to Manage Program → Edit Target Balance → Dynamic Target Balance. Once there, you can configure your spread to achieve different balance sheet strategies:

• Zero Spread (Reciprocate Exactly): Target to receive the same amount you sweep into the network by selecting the Reciprocate Exactly option, then Confirm.
• Positive Spread (Net-Sourcing): Target to receive a custom amount above your sweep balance by selecting the Reciprocate with Spread option, entering your desired Spread Amount as a positive number, then Confirm.
• Negative Spread (Net-Sweeping): Target to receive a custom amount below your sweep balance by selecting the Reciprocate with Spread option, entering your desired Spread Amount as a negative number, then Confirm. Note that the floor for target balances is set to $0, so your target balance can never drop below $0.

Illustrative Examples

To illustrate the functionality of each strategy, consider the example of an institution with an original sweep balance of $10M before and after a member withdraws $2M from the network, resulting in a new sweep balance of $8M:

1. Reciprocate Exactly: Spread = n/a
   1. Original Target Balance: $10M
   2. New Target Balance: $8M
2. Net-Sourcing: Spread = $2M
   1. Original Target Balance = $12M
   2. New Target Balance = $10M
3. Net-Sweeping: Spread = -$2M
   1. Original Target Balance: $8M
   2. New Target Balance: $6M