Who is tines

Tines’ workflow and AI orchestration platform enables businesses to operate more effectively, mitigate risk and reduce tech debt. They have a diverse range of customers, including Canva, Databricks, Elastic, Kayak, Intercom, and McKesson.

Why they use Bound

Foreign currencies

• Revenue: USD 

• Fundraise: USD 

• Opex: EURO

→  They need to convert USD to EUR to cover operating expenses.

→ They want to mitigate FX volatility and ensure stable and predictable rates, without engaging in manual processes.

How they use Bound

Hedging Strategy: Averaging with an automated 6 month horizon

Averaging helps you avoid big rate swings by breaking your currency conversions into smaller, evenly spaced transactions over time. More info here

This approach is ideal for:

• Companies that don't want to pay attention to rates, but don't want to mess it up either.

• Companies that don't need to achieve specific rates, but want to avoid costly mistimings

So here's exactly what they did

Step 1

Tines set up a 6-month averaging automation, an easy option in the platform. They selected the currency they wanted to sell, the currency they wanted to buy, and the amount. Then they chose how many months they wanted to average for at a time. The program automatically rolls over, ensuring they are always hedged for the following six months.

The automation has been set up for the next 6 months, so you can see all your hedges for the next 6 months.

Step 2

Tines adjusted the dates and amounts whenever needed.

Example:
→ When they first started, they were converting $800K per month. As they grew, this increased to $2M. They simply updated the amount in the platform—no complex processes required.

→ They can also adjust the timing. For instance, during Christmas, they moved December’s settlement date a week earlier to align with holiday expenses.

Results 

The red jagged line shows the daily EUR/USD rate, while Tines' hedged rate stays much flatter– this consistency helps them plan ahead. Some months, the daily rate is better; some months, it's worse—but that's fine. Tines know no one can predict FX rates (or they’d always lock in at the perfect time! 🫠).

Tines never has to worry about converting at the worst time and facing tough questions from upstairs. They may not always hit the market high, but they’ve slashed the risk of bad timing by ~90% every month.

Achieved Risk: The potential loss from your hedging strategies on Bound.

Unhedged Risk: The potential loss if no hedging was done, only booking spot trades.

Know you need to stabilise your foreign currency exposure but not sure where to start?

This is our simplest, most hands-off strategy, easy to set up, zero maintenance. And if Tines (valued at $1B) trusts it, you know it works.

No opinion given in the material constitutes a recommendation by Bound Rates Limited that any particular transaction or investment strategy is suitable for any specific company or person. Results may and will vary. The information in this publication does not constitute legal, tax or other professional advice from Bound Rates Limited or its affiliates.