Payment Rules
How contributions, payouts, and the collection cycle work in Zeettu
๐ธ See Payments In Action!
Follow our 10-Cycle Fund Story to see exactly how discounts, dividends, and payouts work.
How Collection Works
After each auction closes, the fund collection phase begins. Every member (including the winner) is assigned a contribution amount. Members must pay their share before the fund can progress.
Example: A fund with a pot of Rs 40,000 and 4 members means each member's base contribution is Rs 10,000. If the winning discount is Rs 4,000, the dividend of Rs 1,000 is deducted per member, making each contribution Rs 9,000.
Contribution Calculation
- โข Base contribution = Pot Value รท Total Members
- โข Dividend = Winning Discount รท Total Members (the benefit everyone gets from the winner's discount)
- โข Your contribution = Base Contribution โ Dividend
- โข If you hold multiple slots, your total due is multiplied by the number of slots you hold.
Payout to the Winner
The winner receives the pot minus the discount they offered. Since the winner is also a contributing member, their own contribution is not transferred โ it stays with them.
- โข Total Payout = Pot Value โ Winning Discount (this is what the winner "wins")
- โข Transfer Amount = Total Payout โ Winner's Own Contribution (the actual amount the organizer sends)
Example: Pot is Rs 40,000. Winner bids Rs 4,000 discount. Total Payout = Rs 36,000. Winner's contribution = Rs 9,000. The organizer only transfers Rs 27,000 because the winner already keeps their Rs 9,000.
3-Step Payout Process
Every payout follows a transparent 3-step process to protect all parties:
Organizer Sends Payout
The organizer transfers funds to the winner via cash or bank transfer and records it in the system.
Winner Confirms Receipt
The winner verifies that they received the payout amount. This protects against disputes.
Organizer Closes the Cycle
Once the winner confirms, the organizer can close the cycle and the fund advances to the next slot.
Fund Progression Rule
โ ๏ธ The fund cannot advance to the next cycle until the organizer has sent the payout and the winner has confirmed receipt.
This ensures that no cycle is closed without the winner receiving their money. Both the organizer's action (sending the payout) and the winner's confirmation are required before the cycle can be marked as settled.
Disbursement Deadline
The organizer is expected to transfer the payout to the winner by the end of the disbursement day set in the fund schedule.
- โข The disbursement day is configured when the fund is created and is visible in the fund overview.
- โข Exception: If any member has not yet paid their contribution by the disbursement day, the organizer is not obligated to disburse until all contributions are collected.
In other words: The organizer cannot pay out what has not been collected. Members who are late with their contributions delay the payout for the winner.
Late Payments
Members who do not pay their contribution by the due date are highlighted on the fund home page:
- โข A ๐ด Delayed badge appears next to their name in the collection sheet.
- โข Their row is highlighted in red and sorted to the top of the list so the organizer can follow up.
- โข The due date turns red when it has passed.
Late payments are visible to the organizer and affect the winner's payout timeline. Timely payments keep the fund running smoothly for everyone.
When the Organizer Wins
If the organizer wins the auction, no payout transfer is needed โ the organizer already holds the collected funds. In this case, the payout step is automatically skipped and the cycle can be closed directly.
Supported Payment Methods
- โข Cash โ Hand over in person. The organizer verifies receipt.
- โข Bank Transfer โ Transfer and upload proof (screenshot or receipt). The organizer verifies.
- โข Online โ Coming soon.