XML 36 R16.htm IDEA: XBRL DOCUMENT
v3.26.1

Derivative financial instruments | 12 Months Ended
--- | ---
Dec. 31, 2025
Subclassifications of assets, liabilities and equities [abstract] |
Derivative financial instruments | 8 Derivative financial instruments and hedging activities
The Group trades derivative financial instruments with various counterparties to manage its overall exposures (interest rate, foreign currency and fair value of financial instruments) and to assist its customers in managing their own exposures. Below is the composition of the derivative financial instruments portfolio (assets and liabilities) by type of instrument, stated fair value and by maturity as of December 31, 2025 and 2024:
|  |  | 2025
| Notional |  | Fair value |  | % |  | Up to 3 months |  | From 3 to 12 months |  | From 1 to 5 years | Above 5 years
Assets |  |  |  |  |  |  |  |  |  |  |  |
Option contracts | 3,055,103,887 |  |  | 13,520,972 |  |  | 33 | % |  | 2,631,248 |  |  | 6,012,043 |  |  | 4,877,594 |  | 87 |
Swap contracts | 914,003,115 |  |  | 20,361,017 |  |  | 50 | % |  | 3,906,979 |  |  | 1,149,103 |  |  | 11,540,141 |  | 3,764,794 |
Forward contracts | 131,460,114 |  |  | 1,071,790 |  |  | 3 | % |  | 937,529 |  |  | 14,282 |  |  | 57,942 |  | 62,037 |
Future contracts | 209,334,260 |  |  | 5,966,802 |  |  | 14 | % |  | 15,143 |  |  | 1,532,495 |  |  | 4,108,917 |  | 310,247 |
Total | 4,309,901,376 |  |  | 40,920,581 |  |  | 100 | % |  | 7,490,899 |  |  | 8,707,923 |  |  | 20,584,594 |  | 4,137,165 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Option contracts | 2,923,722,965 |  |  | 17,264,242 |  |  | 46 | % |  | 1,303,303 |  |  | 7,100,530 |  |  | 5,280,495 |  | 3,579,914 |
Swap contracts | 862,383,442 |  |  | 14,937,416 |  |  | 40 | % |  | 1,857,900 |  |  | 1,393,812 |  |  | 10,515,355 |  | 1,170,349 |
Forward contracts | 144,316,614 |  |  | 1,681,224 |  |  | 4 | % |  | 1,084,705 |  |  | 366,860 |  |  | 192,055 |  | 37,604 |
Future contracts | 304,575,581 |  |  | 3,664,058 |  |  | 10 | % |  | 26,793 |  |  | 1,044,120 |  |  | 2,360,069 |  | 233,076 |
Total | 4,234,998,602 |  |  | 37,546,940 |  |  | 100 | % |  | 4,272,701 |  |  | 9,905,322 |  |  | 18,347,974 |  | 5,020,943 |
|  |  | 2024
| Notional |  | Fair value |  | % |  | Up to 3 months |  | From 3 to 12 months |  | From 1 to 5 years | Above 5 years
Assets |  |  |  |  |  |  |  |  |  |  |  |
Option contracts | 2,538,687,746 |  |  | 18,760,746 |  |  | 41 | % |  | 5,326,134 |  |  | 12,239,761 |  |  | 1,194,830 |  | 21 |
Swap contracts | 758,053,043 |  |  | 21,743,021 |  |  | 47 | % |  | 2,296,009 |  |  | 606,502 |  |  | 14,206,015 |  | 4,634,495 |
Forward contracts | 24,701,643 |  |  | 2,692,354 |  |  | 6 | % |  | 2,058,810 |  |  | 605,517 |  |  | 13,535 |  | 14,492 |
Future contracts | 22,759,253 |  |  | 3,003,675 |  |  | 6 | % |  | 134,803 |  |  | 1,269,006 |  |  | 1,487,548 |  | 112,318 |
Total | 3,344,201,685 |  |  | 46,199,796 |  |  | 100 | % |  | 9,815,756 |  |  | 14,720,786 |  |  | 16,901,928 |  | 4,761,326 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |
Option contracts | 2,441,605,116 |  |  | 22,034,604 |  |  | 55 | % |  | 5,905,967 |  |  | 8,037,327 |  |  | 4,822,139 |  | 3,269,171 |
Swap contracts | 825,780,642 |  |  | 14,000,255 |  |  | 35 | % |  | 2,501,045 |  |  | 1,106,887 |  |  | 6,082,330 |  | 4,309,993 |
Forward contracts | 28,290,772 |  |  | 2,083,292 |  |  | 5 | % |  | 2,008,234 |  |  | 72,285 |  |  | 2,319 |  | 454 |
Future contracts | 397,042,853 |  |  | 1,929,536 |  |  | 5 | % |  | 97,829 |  |  | 917,878 |  |  | 831,693 |  | 82,136 |
Total | 3,692,719,383 |  |  | 40,047,687 |  |  | 100 | % |  | 10,513,075 |  |  | 10,134,377 |  |  | 11,738,481 |  | 7,661,754 |
| 2025 |  | 2024
| Notional (i) |  |  |  |  |  | Fair value |  | Notional (i) |  |  |  |  |  | Fair value
Swap contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 2,244,350 |  |  |  |  |  |  | 95,115 |  |  | 70,637 |  |  |  |  |  |  | 7,486 |
Foreign exchange | 60,549,711 |  |  |  |  |  |  | 3,583,555 |  |  | 48,173,431 |  |  |  |  |  |  | 2,336,907 |
Interest | 821,149,048 |  |  |  |  |  |  | 14,657,464 |  |  | 708,886,668 |  |  |  |  |  |  | 19,137,399 |
Share | 30,060,006 |  |  |  |  |  |  | 2,024,883 |  |  | 922,307 |  |  |  |  |  |  | 261,229 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 1,952,740 |  |  |  |  |  |  | (48,201) |  |  | 1,928,902 |  |  |  |  |  |  | (204,422) |
Foreign exchange | 34,241,157 |  |  |  |  |  |  | (1,574,705) |  |  | 48,091,014 |  |  |  |  |  |  | (2,332,909) |
Interest | 789,512,985 |  |  |  |  |  |  | (12,134,315) |  |  | 762,360,740 |  |  |  |  |  |  | (7,667,588) |
Share | 36,676,560 |  |  |  |  |  |  | (1,180,195) |  |  | 13,399,986 |  |  |  |  |  |  | (3,795,336) |
Forward contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 4,791,603 |  |  |  |  |  |  | 60,659 |  |  | — |  |  |  |  |  |  | — |
Foreign exchange | 124,996,692 |  |  |  |  |  |  | 420,217 |  |  | 14,082,204 |  |  |  |  |  |  | 2,233,794 |
Share | 681,240 |  |  |  |  |  |  | 581,240 |  |  | — |  |  |  |  |  |  | — |
Interest | 990,579 |  |  |  |  |  |  | 9,674 |  |  | 10,619,439 |  |  |  |  |  |  | 458,560 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 4,621,730 |  |  |  |  |  |  | (72,952) |  |  | — |  |  |  |  |  |  | — |
Foreign exchange | 136,860,587 |  |  |  |  |  |  | (309,570) |  |  | 17,671,333 |  |  |  |  |  |  | (1,624,732) |
Interest | 1,759,346 |  |  |  |  |  |  | (1,284,289) |  |  | 10,619,439 |  |  |  |  |  |  | (458,560) |
Share | 1,074,951 |  |  |  |  |  |  | (14,413) |  |  | — |  |  |  |  |  |  | — |
Future contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 18,811,916 |  |  |  |  |  |  | 8,655 |  |  | 8,457,954 |  |  |  |  |  |  | 1,000,458 |
Foreign exchange | 22,610,678 |  |  |  |  |  |  | 171,319 |  |  | 433,824 |  |  |  |  |  |  | 1,264 |
Interest | 167,526,834 |  |  |  |  |  |  | 5,786,166 |  |  | 9,856,454 |  |  |  |  |  |  | 1,456,514 |
Share | 384,832 |  |  |  |  |  |  | 662 |  |  | 4,011,021 |  |  |  |  |  |  | 545,439 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 28,191,142 |  |  |  |  |  |  | (15,874) |  |  | 86,833,282 |  |  |  |  |  |  | (430,031) |
Foreign exchange | 16,866,362 |  |  |  |  |  |  | (50,492) |  |  | 17,679,727 |  |  |  |  |  |  | (50,786) |
Interest | 259,471,046 |  |  |  |  |  |  | (3,597,542) |  |  | 91,070,059 |  |  |  |  |  |  | (451,014) |
Share | 47,031 |  |  |  |  |  |  | (150) |  |  | 201,459,785 |  |  |  |  |  |  | (997,705) |
Option contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 20,592,062 |  |  |  |  |  |  | 310,526 |  |  | 1,542 |  |  |  |  |  |  | 163 |
Foreign exchange | 72,853,018 |  |  |  |  |  |  | 3,315,588 |  |  | 9,565,942 |  |  |  |  |  |  | 714,593 |
Interest | 2,831,484,361 |  |  |  |  |  |  | 3,165,811 |  |  | 2,528,806,657 |  |  |  |  |  |  | 17,978,224 |
Share | 130,174,446 |  |  |  |  |  |  | 6,729,047 |  |  | 313,605 |  |  |  |  |  |  | 67,766 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commodities | 200,509,247 |  |  |  |  |  |  | (504,494) |  |  | 3,492 |  |  |  |  |  |  | (25) |
Foreign exchange | 74,802,937 |  |  |  |  |  |  | (4,438,639) |  |  | 175,548 |  |  |  |  |  |  | (526,549) |
Interest | 2,586,274,296 |  |  |  |  |  |  | (932,898) |  |  | 2,440,966,741 |  |  |  |  |  |  | (15,167,264) |
Share | 62,136,485 |  |  |  |  |  |  | (11,388,211) |  |  | 459,335 |  |  |  |  |  |  | (6,340,766) |
Assets |  |  |  |  |  |  | 40,920,581 |  |  |  |  |  |  |  |  | 46,199,796 |
Liabilities |  |  |  |  |  |  | (37,546,940) |  |  |  |  |  |  |  |  | (40,047,687) |
Net |  |  |  |  |  |  | 3,373,641 |  |  |  |  |  |  |  |  | 6,152,109 |
(i)Notional amounts represent the sum of gross long and short derivative contracts and provide an indication of the volume of the Group’s derivative activity. They do not represent anticipated losses or actual exposure. For most derivative contracts, the notional amount is not exchanged and it serves solely as a reference amount used to calculate payments between the parties. Derivatives designated as hedges XP Inc. applies hedge accounting to certain derivatives when these instruments are used to hedge exposures that meet the criteria for hedge accounting under IFRS 9 – Financial Instruments. However, the Group does not apply hedge accounting to all derivatives used in its risk management activities. For example, certain derivatives used for economic hedging purposes may not qualify for hedge accounting due to the complexity of demonstrating the required effectiveness or documentation criteria. As a result, some derivatives are accounted for at fair value through profit or loss, with changes in fair value recognized directly in profit or loss. To qualify for hedge accounting, XP Inc. requires that the hedging relationship is formally documented at inception, including the risk management objective, the identification of the hedging instrument and the hedged item, the nature of the risk being hedged, and the method for assessing hedge effectiveness both prospectively and retrospectively. The company assesses hedge effectiveness using quantitative methods such as the Dollar Offset Method, comparing changes in the fair value or cash flows of the hedging instrument and the hedged item attributable to the hedged risk. The Group has three types of hedge relationships: hedge of net investment in foreign operations; fair value hedge and cash flow hedge. For hedge accounting purposes, the risk factors measured by the Group are: •Interest Rate: Risk of volatility in transactions subject to interest rate variations; •Currency: Risk of volatility in transactions subject to foreign exchange variations; •Stock Grant Charges: Risk of volatility in XP Inc stock prices, listed on NASDAQ. The structure of risk limits is extended to the risk factor level, where specific limits aim at improving the monitoring and understanding processes, as well as avoiding concentration of these risks. The structures designed for interest rate and exchange rate categories take into account total risk when there are compatible hedging instruments. In certain cases, management may decide to hedge a risk for the risk factor term and limit of the hedging instrument. Sources of ineffectiveness are generally related to: (a)Possible mismatches between the maturity dates of the hedging instrument and the hedged item; (b)Possible mismatches between the notional amounts of the hedging instrument and the hedged item; (c)The churn rate associated with the fair value estimate of the shares granted under the Company’s share-based plan, and considered when contracting the hedging instruments, which is calculated to accrue the impact of cancellations during the term of the plan. Hedge effectiveness is assessed at inception and on an ongoing basis, at least quarterly. If a hedge is determined to be ineffective or the hedging relationship ceases to meet the qualifying criteria, hedge accounting is discontinued prospectively. Hedge ineffectiveness is recognized in “Net income/(loss) from financial instruments at fair value through profit or loss” in the Group’s consolidated statement of income. The following table outlines the Group’s primary uses of derivatives and the related hedge accounting designation or disclosure category:
Type of Derivative | Use of Derivative | Designation and disclosure
Specifically identified risk exposures in qualifying hedge accounting relationships: |
Foreign exchange future | Hedge of the Group’s investments in subsidiaries located in the United States (XP Holding International LLC and XP Advisory US) to protect against US$ exchange rate fluctuations. | Net investment hedge
Interest rate future | Hedge fixed-rate assets and liabilities to mitigate fair value changes, protect against exchange rate fluctuations, and avoid temporary impacts on profit or loss arising from interest rate movements and cash flows related to interest payments and receipts. | Fair value hedge
Interest rate future | Hedge floating-rate exposure on loan operations indexed to IPCA to avoid temporary fluctuations in statements of income arising from changes in the interest rate market. | Fair value hedge
Foreign exchange future | Hedge to protect the change in the fair value related to foreign exchange fluctuations arising from the bond issued by XP Inc. | Fair value hedge
SWAP-TRS | Hedge the cash flow exposure related to XP share price fluctuations on labor tax payments arising from the share-based plans, ensuring predictability of future obligations. | Cash flow hedge
Group’s outstanding hedge accounting relationships (i) Hedge of net investment in foreign operations The objective of the Group is to hedge the risk generated by the US$ variation from investments in our subsidiaries in the United States (XP Holding International LLC. and XP Advisors Inc). The Group has entered into future contracts to protect against changes in future cash flows and exchange rate variation of net investments in foreign operations. The Group undertakes risk management through the economic relationship between hedge instruments and hedged items, in which it is expected that these instruments will move in opposite directions, in the same proportions, with the aim of neutralizing the risk factors. (ii) Fair value hedges The Group’s fair value strategies consist of hedging the exposure to variation in fair value on the receipt, payment of interests and exchange variation on assets and liabilities. The group applies fair value hedges as follows: •Hedging the exposure of fixed-income securities carried out through structured notes. The market risk hedge strategy involves avoiding temporary fluctuations in earnings arising from changes in the interest rate market in Reais. Once this risk is offset, the Group seeks to index the portfolio to the CDI, through the use of derivatives (DI1 Futuro). The hedge is contracted in order to neutralize the total exposure to the market risk of the fixed-income funding portfolio, excluding the portion of the fixed-income compensation represented by the credit spread of Banco XP S.A., seeking to obtain the closest match deadlines and volumes as possible. •Hedging to protect the change in the fair value of the exchange and interest rate risk of the component of future cash flows arising from the XP Inc bond issued (financial liability) by contracting derivatives. •Hedging the exposure of fixed-income securities carried out through sovereign bonds issued by Brazilian government in BRL through the use of derivatives. The strategy involves avoiding temporary fluctuations in statements of income arising from changes in the interest rate market. The hedge is contracted in order to neutralize the exposure arising from the risk-free portion of the fixed-income securities, excluding the portion of the securities’ remuneration represented by the credit spread. •Hedging the exposure to fixed interest rates in BRL arising from the payroll loans portfolio through the use of derivatives. The strategy involves avoiding temporary fluctuations in statements of income arising from changes in the interest rate market. •Hedging the exposure to floating interest rates in BRL arising from loan operations indexed to IPCA (Brazilian inflation index) through the use of derivatives. The strategy involves avoiding temporary fluctuations in statements of income arising from changes in the interest rate market. (iii) Cash flow hedges The Group applies cash flow hedge in order to neutralize the impacts of XP share price variation on highly probable labor tax payments related to share-based compensation plans using SWAP-TRS contracts. Labor tax payments are due upon delivery of shares to employees under share-based compensation plans and are directly related to share price at that time. The table below summarizes notional amounts and changes in both the hedged item and the hedging instruments used to calculate hedge effectiveness of all the Group’s hedge accounting relationships:
|  | Hedged item |  | Hedge instrument |  |
|  | Book Value |  | Variation in value recognized in income or other comprehensive income (i) |  | Notional value |  | Variation in the amounts used to calculate hedge ineffectiveness |  | Hedge ineffectiveness recognized in income (ii)
|  | Assets |  | Liabilities |  |  |  |
2025 |  |  |  |  |  |  |  |  |  |  |  |
Net investment hedge |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |
Hedge of net investment in foreign operations |  | 684,297 |  |  |  |  | (70,908) |  |  | 677,325 |  |  | 77,912 |  |  | 7,004 |
Total net investment hedge |  | 684,297 |  |  | — |  |  | (70,908) |  |  | 677,325 |  |  | 77,912 |  |  | 7,004 |
Fair value hedge |  |  |  |  |  |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |
Structured notes |  | — |  |  | 20,428,519 |  |  | (819,917) |  |  | 21,599,440 |  |  | 840,227 |  |  | 20,310 |
Issued bonds |  | — |  |  | 2,317,198 |  |  | 159,648 |  |  | 2,353,595 |  |  | (189,556) |  |  | (29,908) |
Brazilian sovereign bonds |  | 16,710,279 |  |  | — |  |  | 160,659 |  |  | 16,262,973 |  |  | (166,510) |  |  | (5,851) |
Payroll loans |  | 1,934,158 |  |  | — |  |  | 68,977 |  |  | 1,788,141 |  |  | (48,484) |  |  | 20,493 |
Loan operations |  | 3,664,357 |  |  | — |  |  | 74,226 |  |  | 3,720,117 |  |  | (35,235) |  |  | 38,991 |
Total interest rate risk |  | 22,308,794 |  |  | 22,745,717 |  |  | (356,407) |  |  | 45,724,266 |  |  | 400,442 |  |  | 44,035 |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |
Issued bonds |  | — |  |  | 43,441 |  |  | 7,544 |  |  | 43,496 |  |  | (7,609) |  |  | (65) |
Total foreign exchange risk |  | — |  |  | 43,441 |  |  | 7,544 |  |  | 43,496 |  |  | (7,609) |  |  | (65) |
Total fair value hedge |  | 22,308,794 |  |  | 22,789,158 |  |  | (348,863) |  |  | 45,767,762 |  |  | 392,833 |  |  | 43,970 |
Cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |
Market price risk |  |  |  |  |  |  |  |  |  |  |  |
Long term incentive plan taxes |  | — |  |  | 185,923 |  |  | (62,240) |  |  | 226,601 |  |  | 49,199 |  |  | (13,041) |
Total cash flow hedge |  | — |  |  | 185,923 |  |  | (62,240) |  |  | 226,601 |  |  | 49,199 |  |  | (13,041) |
Total |  | 22,993,091 |  |  | 22,975,081 |  |  | (482,011) |  |  | 46,671,688 |  |  | 519,944 |  |  | 37,933 |
2024 |  |  |  |  |  |  |  |  |  |  |  |
Net investment hedge |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |
Hedge of net investment in foreign operations |  | 675,168 |  |  | — |  |  | 136,598 |  |  | 708,102 |  |  | (138,777) |  |  | (2,179) |
Total net investment hedge |  | 675,168 |  |  | — |  |  | 136,598 |  |  | 708,102 |  |  | (138,777) |  |  | (2,179) |
|  | Hedged item |  | Hedge instrument |  |
|  | Book Value |  | Variation in value recognized in income or other comprehensive income (i) |  | Notional value |  | Variation in the amounts used to calculate hedge ineffectiveness |  | Hedge ineffectiveness recognized in income (ii)
|  | Assets |  | Liabilities |  |  |  |
Fair value hedge |  |  |  |  |  |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |
Structured notes |  | — |  |  | 17,671,952 |  |  | 2,727,761 |  |  | 18,273,237 |  |  | (2,817,265) |  |  | (89,504) |
Issued bonds |  | — |  |  | 2,478,683 |  |  | (725,223) |  |  | 2,410,196 |  |  | 808,415 |  |  | 83,192 |
Brazilian sovereign bonds |  | 24,728,299 |  |  | — |  |  | (384,453) |  |  | 24,624,210 |  |  | 372,940 |  |  | (11,513) |
Payroll loans |  | 842,210 |  |  | — |  |  | (31,328) |  |  | 850,579 |  |  | 29,466 |  |  | (1,862) |
Loan operations |  | 2,381,358 |  |  | — |  |  | (17,669) |  |  | 2,377,504 |  |  | 16,600 |  |  | (1,069) |
Total interest rate risk |  | 27,951,867 |  |  | 20,150,635 |  |  | 1,569,088 |  |  | 48,535,726 |  |  | (1,589,844) |  |  | (20,756) |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |
Issued bonds |  | — |  |  | 133,470 |  |  | (54,096) |  |  | 134,802 |  |  | 52,953 |  |  | (1,143) |
Total foreign exchange risk |  | — |  |  | 133,470 |  |  | (54,096) |  |  | 134,802 |  |  | 52,953 |  |  | (1,143) |
Total fair value hedge |  | 27,951,867 |  |  | 20,284,105 |  |  | 1,514,992 |  |  | 48,670,528 |  |  | (1,536,891) |  |  | (21,899) |
Cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |
Market price risk |  |  |  |  |  |  |  |  |  |  |  |
Long term incentive plan taxes |  | — |  |  | 234,310 |  |  | 205,701 |  |  | 206,068 |  |  | (198,386) |  |  | 7,315 |
Total cash flow hedge |  | — |  |  | 234,310 |  |  | 205,701 |  |  | 206,068 |  |  | (198,386) |  |  | 7,315 |
Total |  | 28,627,035 |  |  | 20,518,415 |  |  | 1,857,291 |  |  | 96,419,266 |  |  | (1,874,054) |  |  | (16,763) |
2023 |  |  |  |  |  |  |  |  |  |  |  |
Net investment hedge |  |  |  |  |  |  |  |  |  |  |  |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |
Hedge of net investment in foreign operations |  | 450,853 |  |  | — |  |  | (34,603) |  |  | 446,442 |  |  | 41,235 |  |  | 6,632 |
Total net investment hedge |  | 450,853 |  |  | — |  |  | (34,603) |  |  | 446,442 |  |  | 41,235 |  |  | 6,632 |
Fair value hedge |  |  |  |  |  |  |  |  |  |  |  |
Interest rate risk |  |  |  |  |  |  |  |  |  |  |  |
Structured notes |  | — |  |  | 16,593,439 |  |  | (816,142) |  |  | 16,702,984 |  |  | 849,160 |  |  | 33,018 |
Issued bonds |  | — |  |  | 3,302,787 |  |  | 121,301 |  |  | 3,156,234 |  |  | (147,125) |  |  | (25,824) |
Total interest rate risk |  | — |  |  | 19,896,226 |  |  | (694,841) |  |  | 19,859,218 |  |  | 702,035 |  |  | 7,194 |
Foreign exchange risk |  |  |  |  |  |  |  |  |  |  |  |
Issued bonds |  | — |  |  | 237,472 |  |  | 9,881 |  |  | 223,565 |  |  | (15,064) |  |  | (5,183) |
Total foreign exchange risk |  | — |  |  | 237,472 |  |  | 9,881 |  |  | 223,565 |  |  | (15,064) |  |  | (5,183) |
Total fair value hedge |  | — |  |  | 20,133,698 |  |  | (684,960) |  |  | 20,082,783 |  |  | 686,971 |  |  | 2,011 |
Cash flow hedge |  |  |  |  |  |  |  |  |  |  |  |
Market price risk |  |  |  |  |  |  |  |  |  |  |  |
Long term incentive plan taxes |  | — |  |  | 414,315 |  |  | (59,517) |  |  | 438,765 |  |  | 70,906 |  |  | 11,389 |
Total cash flow hedge |  | — |  |  | 414,315 |  |  | (59,517) |  |  | 438,765 |  |  | 70,906 |  |  | 11,389 |
Total |  | 450,853 |  |  | 20,548,013 |  |  | (779,080) |  |  | 20,967,990 |  |  | 799,112 |  |  | 20,032 |
(i)For net investment hedges and cash flow hedges, the effective portion of changes in fair value is recognized in Other Comprehensive Income (OCI), while for fair value hedges, changes in fair value are recognized in profit or loss. (ii)Hedge ineffectiveness is recognized in “Net income/(loss) from financial instruments at fair value through profit or loss” in the Group’s consolidated income statement.

X
- Definition The disclosure of derivative financial instruments. [Refer: Derivatives [member]] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Note Expiry date 2027-01-01 -Name IAS -Number 1 -IssueDate 2025-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2025-en-b&anchor=para_10_e&doctype=Standard -URIDate 2025-03-27 + Details
Name: | ifrs-full_DisclosureOfDerivativeFinancialInstrumentsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-2022:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_SubclassificationsOfAssetsLiabilitiesAndEquitiesAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration