Escrow Instructions

Escrow Instructions (Stripe Connect)

These Escrow Instructions describe the operational mechanics through which payments under Commissions on the Otterkin platform are processed, held, and released. They are complementary to the User Agreement (in particular Sections 3, 5, and 5A) and the Fee and Payment Authorisation Agreement, and are incorporated by reference into both.

Otterkin is not a licensed escrow agent, and these Instructions do not create a trust, escrow, or fiduciary relationship between Otterkin and any User. Payments are processed and held within Stripe Connect, operated by Stripe Payments Europe Ltd, and are subject at all times to the Stripe Services Agreement.

1. Use of Stripe Connect

Otterkin operates a Stripe Connect platform. Patrons are configured as Stripe customers; Artists are configured as Stripe connected accounts. All payments made by Patrons in respect of a Commission are received into Otterkin's Stripe platform balance, and all payments made to Artists are released from that platform balance via Stripe Connect transfers. Otterkin does not hold User funds directly.

2. Patron Pay-In Schedule

A Patron makes payment under a Commission in two equal instalments, each representing 50% of the artwork value:

In addition to each instalment, the 3.5% Patron Levy is charged proportionally alongside the instalment. Where applicable by law, VAT at the standard UK rate is applied to the Patron Levy.

3. Artist Pay-Out Schedule

An Artist receives their payout under a Commission across three milestones, calculated against the artist-set value of the artwork:

Released amounts are calculated net of the Service Fee, applicable VAT on the Service Fee, and any applicable disbursement fees, in accordance with the Fee and Payment Authorisation Agreement.

The Patron's First Draft Charge brings the Patron to full payment before the final Artist pay-out at Marked as Delivered. The portion attributable to the Marked as Delivered milestone is held in Otterkin's Stripe platform balance between the First Draft and Marked as Delivered milestones.

4. Service Fee, Patron Levy, and VAT

The Service Fee is a 17.5% commission calculated on the total value of the artwork, deducted from the Artist's payout proportionally across the three Artist pay-out milestones described in Section 3.

The Patron Levy is a 3.5% fee calculated on the total value of the artwork, added to and collected from the Patron alongside each of the two Patron pay-in instalments described in Section 2.

Where applicable by law, VAT at the standard UK rate is applied to the Service Fee and the Patron Levy. The Artist remains solely responsible for any VAT applicable to the underlying value of the artwork itself.

5. Gift Vouchers

The Gift Voucher service is governed substantively by Section 5A of the User Agreement and financially by Section 5 of the Fee and Payment Authorisation Agreement. This Section 5 sets out how Gift Vouchers interact operationally with the pay-in and pay-out mechanics described above.

5.1 Holding of Voucher Funds

When a Gifter purchases a Gift Voucher, the full face value is received into Otterkin's Stripe platform balance and held as a liability until the Recipient claims the Gift Voucher.

5.2 Application to a Commission

Where the Recipient applies a Gift Voucher to a Commission, the voucher balance is applied as a lump sum against the earliest charge under the Patron Pay-In Schedule (Section 2). The Patron's Payment Method on file is debited for any shortfall at each instalment. Any voucher balance remaining after the first instalment is carried forward to the second.

5.3 Artist Pay-Out from Voucher-Funded Portions

Where a portion of a Commission is funded by a Gift Voucher, the Artist's payout in respect of that portion is sourced from the held voucher balance in Otterkin's Stripe platform balance. Pay-out continues to follow the three-milestone schedule set out in Section 3.

5.4 Top-Up Portion

On the portion of a Commission not funded by a Gift Voucher, the Service Fee, the Patron Levy, and applicable VAT apply in full as described in Section 4. The 3.5% Patron Levy applies to the full value of the Commission, regardless of Gift Voucher use, and is paid by the Patron via the top-up portion.

5.5 Expiry

Where a Gift Voucher expires under Section 5A.4 of the User Agreement, both any recognised Service Fee revenue and the held liability portion are absorbed by Otterkin. No Artist payout is made in respect of an expired Gift Voucher.

6. Disputes and Delays

Otterkin may delay or cancel the release of funds, including funds held in respect of a Commission or a Gift Voucher, in the event of a dispute, suspected breach of the User Agreement, or any concern regarding legality or platform integrity.

If a dispute arises between a Patron and an Artist, the parties must follow the steps outlined in Section 13 of the User Agreement, including the 60-day informal resolution window and the binding arbitration process if the matter is unresolved.

7. Authorisation

By engaging in a Commission through Otterkin, or by purchasing or claiming a Gift Voucher, Users authorise Otterkin to instruct Stripe to: