Effective Date: 31st of January 2025
Last Updated: 31st of January 2025
INTRODUCTION
1.1 OVERVIEW
Welcome to Circle Funds (“we,” “us,” or “our”). These General Terms & Conditions (“T&C”) govern your use of the Circle Funds platform (“Platform”), including the creation and participation in thrifts (ajo/esusu), whether private or community-based.
1.2 BINDING AGREEMENT
By accessing or using our Platform, you agree to be bound by these T&C. If you do not agree, you should discontinue use of the Platform immediately.
1.3 CONTACT INFORMATION
If you have any questions or concerns, kindly contact us at: hello@circlefunds.io
KEY DEFINITIONS
“Thrift” or “Contribution Cycle”: A rotational savings plan whereby members contribute a set amount at a set frequency, and each member periodically receives a payout in turn.
“Admin”: A user who creates and manages a thrift on the Platform and may optionally charge fees for organizing the thrift.
“Participant” or “User”: A user who contributes to and/or benefits from a thrift.
“Thrift Levy”: The fee that Circle Funds automatically charges for administering or hosting a thrift.
“KYC Level”: The verification level for a user (e.g., Level 2, Level 3) based on the completeness of identity verification and other regulatory requirements.
THRIFT STRUCTURE & REQUIREMENTS
3.1 MINIMUM AND MAXIMUM PARTICIPANTS
A single thrift must have at least 3 participants and no more than 12 participants.
3.2 SUPPORTED CYCLES
Thrift cycles supported on our Platform are limited to weekly and monthly frequencies.
3.3 ESCROW & LICENSED FINANCIAL INSTITUTIONS
Circle Funds partners with licensed financial institutions who serve as custodians (“escrows”) for thrift funds.
Funds contributed to a thrift are not at any time directly held by the Admin. All contributions and payouts are processed via our integrated financial partners.
3.4 KYC REQUIREMENTS
KYC Level 2 is the minimum requirement to withdraw funds from the Platform.
KYC Level 3 plus an application to become an Admin is required before any user can earn fees from a thrift.
Users who have not reached the appropriate KYC Level may be restricted from certain Platform features.
THRIFT STRUCTURE & REQUIREMENTS
3.1 MINIMUM AND MAXIMUM PARTICIPANTS
A single thrift must have at least 3 participants and no more than 12 participants.
3.2 SUPPORTED CYCLES
Thrift cycles supported on our Platform are limited to weekly and monthly frequencies.
3.3 ESCROW & LICENSED FINANCIAL INSTITUTIONS
Circle Funds partners with licensed financial institutions who serve as custodians (“escrows”) for thrift funds.
Funds contributed to a thrift are not at any time directly held by the Admin. All contributions and payouts are processed via our integrated financial partners.
3.4 KYC REQUIREMENTS
KYC Level 2 is the minimum requirement to withdraw funds from the Platform.
KYC Level 3 plus an application to become an Admin is required before any user can earn fees from a thrift.
Users who have not reached the appropriate KYC Level may be restricted from certain Platform features.
THRIFT FEES & LEVIES
4.1 ADMIN FEES
An Admin may set an Admin Fee for their thrift. This fee is the amount the Admin intends to earn per thrift cycle.
4.2 CIRCLEFUNDS THRIFT LEVY
Automatic Deduction: From any Admin Fee charged, Circle Funds automatically deducts a Thrift Levy.
Formula Overview:
The Thrift Levy is calculated based on the thrift’s contribution amount, the number of participants, and whether the Admin has opted to charge a fee.
Scenarios:
Admin Chooses to Collect a Fee:
Circle Funds charges a portion of that fee as the Thrift Levy.
The maximum that Circle Funds may charge an Admin is ₦10,000 per thrift cycle.
Each participant’s portion may also be subject to a user levy up to a maximum of ₦3,000.
Once the Thrift Levy is deducted, any remainder belongs to the Admin.
Admin Chooses Not to Collect a Fee:
Circle Funds may apply a user-side levy (participant levy) to cover costs, capped at ₦3,000 per participant.
The Admin does not earn anything in this scenario.
Examples:
If an Admin sets a fee of ₦10,000 for a cycle and the Thrift Levy is ₦1,000, the Admin’s net earning is ₦9,000.
If the Admin sets no fee, participants might each be charged a nominal levy (up to ₦3,000 each) to cover Circle Funds’ hosting costs.
4.3 NO REDUCTION OF THIFT LEVY
The Thrift Levy computed by Circle Funds cannot be lowered or waived by the Admin. It is mandatory if the Admin sets a fee.
If the Admin sets a fee below the calculated levy, the system will not permit the thrift setup, or the Admin’s final earning may be zero.
THRIFT PARTICIPATION & DEFAULTS
5.1 RESPONSIBILITIES
Circle Funds is responsible for ensuring the thrift product complies with legal and regulatory requirements.
Each Admin is responsible for selecting and accepting members (participants) they know and trust.
If a participant fails to make their contributions or defaults on any obligation, the Admin is expected to use the Platform’s features or other manual means (like personal follow-ups) to address the situation.
Circle Funds provides the platform but is not liable for recovering money from a defaulting member.
5.2 PRIVATE THRIFTS VS COMMUNITY THRIFTS
Users can create or join Private Thrifts, which are accessible by invitation, or Community Thrifts, which may be publicly searchable or open to certain user groups.
Thrift Scores (see Section 6) can help identify reputable participants for Community Thrifts.
THRIFT SCORES
6.1 PURPOSES
The Platform generates a Thrift Score for each user, drawing upon data such as bank statements, user activity, completed KYC data, and any other relevant factors.
6.2 USAGE
A user’s Thrift Score reflects their reliability, payment history, and overall trustworthiness in thrift activities.
Admins and other participants can use Thrift Scores to gauge whether to trust certain members, particularly in Community Thrifts.
6.3 UPDATES & ACCURACY
Thrift Scores are updated periodically.
While we strive to maintain accurate scoring, Circle Funds makes no guarantee regarding the completeness or timeliness of the information used to calculate Thrift Scores.
PLATFORM USE OF CONDUCT
7.1 PROHIBITED ACTIVITIES
You must not use the Platform for any illegal, fraudulent, or unauthorized purpose, including but not limited to money laundering, financing terrorism, or scamming other users.
7.2 ACCOUNT SECURITY
All contributions, fees, and payouts are handled via our licensed financial institution partners. Users must comply with any additional terms or restrictions set by these partners.
DISCLAIMER AND LIMITATION OF LIABILITY
8.1 DISCLAIMER
Circle Funds provides the Platform and related services “as is” without warranties of any kind. We do not guarantee any thrift’s success, profitability, or on-time payout.
8.2 NO LIABILITY FOR DEFAULT
Circle Funds is not responsible for individual user defaults. Any recourse for failure to contribute or repay remains a matter between the Admin and the defaulting participant.
8.3 LIMITATION OF LIABILITY
To the extent permitted by law, Circle Funds and its affiliates are not liable for indirect, consequential, or special damages, including lost profits or inability to collect from defaulting participants.
AMENDMENT AND NOTICES
9.1 CHANGES TO T & C
We may update or modify these T&C from time to time. Material changes will be communicated via email, app notifications, or other appropriate channels.
Your continued use of the Platform after updates signifies acceptance of any revised terms.
9.2 NOTICES
We will notify you through the Platform or via the email address you provided. Ensure you maintain a valid email address in your account profile.
TERMINATION AND SUSPENSION
10.1 TERMINATION BY USER
You may stop using the Platform at any time. If you have an active thrift, you must fulfill any outstanding obligations before closing your account.
10.2 TERMINATION BY CIRCLE FUNDS
We reserve the right to suspend or terminate your account if we have reason to believe you have violated these T&C, engaged in fraudulent activity, or compromised the Platform’s security or integrity.
10.3 EFFECTS OF TERMINATION
Upon account termination, all ongoing thrifts in which you are an Admin or participant may be suspended, and any unsatisfied obligations will be addressed according to our internal policies.
GOVERNING LAW AND DISPUTE RESOLUTION
11.1 GOVERNING LAW
These T&C are governed by and interpreted under the laws of the Federal Republic of Nigeria.
11.2 DISPUTE RESOLUTION
Should any dispute arise, the parties agree to attempt an amicable resolution. Failing that, disputes shall be referred to the competent courts of the Federal Republic of Nigeria.
MISCELLANEOUS
12.1 ENTIRE AGREEMENT
These T&C, including any additional agreements referenced herein, constitute the entire agreement between you and Circle Funds regarding the use of the Platform.
12.2 SEVERABILITY
If any provision of these T&C is deemed invalid or unenforceable, the remaining provisions shall continue in full force and effect.
12.3 NO WAIVER
Circle Funds’ failure to enforce any right or provision of these T&C does not constitute a waiver of that right or provision.
12.4 ASSIGNMENT
You may not assign or transfer your rights or obligations under these T&C without our prior written consent.
12.5 SURVIVAL
Provisions that by their nature should survive termination (e.g., disclaimers, limitation of liability) shall remain in effect even after account closure.
ACKNOLEDGEMENT & ACCEPTANCE
By using the Circle Funds Platform, creating or participating in thrifts, and/or serving as an Admin, you acknowledge that you have read, understood, and agree to be bound by these General Terms & Conditions.
If you have any questions, please contact us at: hello@circlefunds.io
