Zeettu - Auction Rules

Random Allocation

When a fund uses Random allocation, the slot order is decided by a random draw at fund activation. There is no auction step and no discount concept.

• Each cycle's winner is pre-determined by the random draw — no bidding takes place.
• Every member pays their full contribution each cycle (no discount deduction).
• The winner receives the full pot minus their own contribution.
• The cycle moves directly from Allocated → Collection → Settled → Closed (the Auction step is skipped).

Note: The auction rules below only apply to funds that use Auction or Random-then-Auction allocation. If your fund uses Random allocation, you can disregard the sections below.

What is a Reverse Auction?

In a Zeettu chit fund, the reverse auction determines who receives the pot each cycle. Members bid a discount — the amount they are willing to give up from the pot. The member who offers the highest discount wins the pot, meaning the remaining members get the maximum benefit.

Example: If the pot is Rs 100,000 and you bid a discount of Rs 8,000, you would receive Rs 92,000. If another member bids Rs 5,000, you win because your discount is higher (you're willing to give up more, which benefits everyone else).

Open Auction

In an Open Auction, all bids are visible to everyone in real time. You can see who bid, how much, and who's currently winning.

• All bids are shown in a ranked list, from highest (winner) to lowest.
• Each new bid must be higher than the current highest bid.
• Bids must respect the minimum bid step set by the organizer (e.g., at least Rs 500 higher than the current high).
• You may modify your bid by tapping it in the bid list. Your updated bid must still beat all other bids.

Closed Auction

In a Closed Auction, bids are hidden. You won't see other members' discount amounts — only whether you are currently winning or not.

• You may only place one bid. Once submitted, it cannot be changed.
• After bidding, the system tells you if you are currently the winning bidder or if someone else has a higher bid — but not who or how much.
• When the timer ends, all bids are revealed and the winner is announced.

Bid Withdrawal

To keep auctions fair, withdrawal is restricted:

• Only the current winning bidder (the person with the highest discount) may withdraw their bid.
• Non-winning bidders cannot withdraw. This prevents a manipulation tactic where someone places an artificially high bid to push others to bid higher, then withdraws.
• Withdrawal is not available in closed auctions.

The Fair-Play Clock (Anti-Snipe)

To prevent "sniping" (bidding at the very last second), the auction uses an elastic timer:

The 30/60 Rule: If a bid is placed with less than 30 seconds remaining, the timer automatically extends to 60 seconds. This gives everyone a fair chance to respond.

This only applies to open auctions. Closed auctions have a fixed end time.

Who Can Bid?

• You must be an active member of the fund.
• You must not have already received a pot in a previous cycle — prized members cannot bid again.
• You must hold at least one future slot (a cycle position not yet at collection). Exception: if the current cycle's slot is already yours, you may take your own pot — no future slot required.
• Organizer-last rule: The organizer's final slot is reserved — they can only bid if they hold additional future slots.

Slot Reassignment After an Auction Win

When a member wins an auction on a cycle that was originally allocated to another member, Zeettu automatically reassigns a future slot to the displaced member to guarantee they still get their turn.

• The winner's nearest future slot is transferred to the member whose original allocation they displaced.
• The displaced member receives an SMS and email confirming which future cycle they have been reassigned to.
• The auction winner is also notified that one of their future slots has been reassigned as part of this rule.
• If the current cycle's slot already belongs to the bidder, no reassignment occurs — they are simply taking their own allocated pot.

This rule guarantees that every member who loses their allocated cycle to an auction winner is given a confirmed future cycle in return. No member is ever left without a slot.

What If No One Bids?

If an auction closes with zero bids, the pot is automatically awarded to the member who was originally allocated to that cycle's slot.

• The winning discount is zero — every member pays their full contribution and the winner receives the full pot minus their own contribution.
• The cycle moves straight to Collection once the auction timer expires.

Auction Rules

🎭 See The Rules In Action!