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

# Consignment Distribution — Cheque as Commodity

A USDC cheque is not just a digital instrument — in the distribution model it is a product with a face value that acts as its price tag. The issuer manufactures batches, and merchants are distributors who sell these products to end customers.

<img src="https://mintcdn.com/whalescorp/IrOqlJ-h_H8QGDFD/images/Scheme21.png?fit=max&auto=format&n=IrOqlJ-h_H8QGDFD&q=85&s=e79c0e1b6c54f979d1f0a8522b90b145" alt="Scheme21" width="1536" height="1024" data-path="images/Scheme21.png" />

## Key Financial Events

| Event | Effect on Merchant Debt |
| :- | :- |
| Batch shipped to merchant | Contingent liability created for cheques in stock |
| Cheque activated (sold) | Liability fixed and increased by the face value |
| Cheque returned (unsold) | Liability reduced by the face value |
| Cheque expired unactivated | Returned to issuer and liability cancelled |
| Settlement payment received | Debt cleared by the paid amount |
| Rebate paid by issuer | Separate credit to merchant and not a debt reduction |


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