Money Club Guide

How does the Money Club mobile app work?

By April 17, 2017 5 Comments

Curious?

We’ve compiled a crisp and short note for you before you download the mobile app and enter the Club.

 

General terms & conditions of a Money Club

  1. Members required to form a club : 4-20 members
  2. Minimum contribution per member: 200 INR
  3. Minimum bid : 1% of total club amount
  4. Frequency of club: daily, 3 days,  weekly, fortnightly or monthly

Read more…. 

 

Currently all the clubs are formed by the Money Club Team only. We take verified members in a club based on their profile and their transaction history on the platform.

 

Part 1 – Getting started with the Money Club app
Part 2 – Forming a Money Club
Part 3 – Activating Club, Bidding and Money-Making

The Frequently asked questions

Q1. What happens if someone defaults?

A: The Money Club replaces the defaulter with one of the Money Club team members to continue the club. In the background, we follow our debt recovery protocol to recover the funds from the defaulter. Repercussions of default are given in this blog : https://www.themoneyclub.in/2018/02/10/what-will-happen-when-a-money-clubber-defaults/

Q2. What if no one bids for the money?

A: If no one bids in the first one minute of the live bidding countdown, the Money club app would run an algorithm to identify a member randomly. It will then bid the minimum bid amount (1% of the pool amount) on his/her behalf to start the bid. Bidding can then proceed normally post that. We call this feature AUTO BID.

Q3. How to transfer the money after a bid ends?

A: Users only need to make a commitment when they join a club on the app. This doesn’t require them to transfer funds at that time. After the bidding, a winner is declared based on the highest bid amount. The club members get a popup in the Money Club app, showing the details of the winner (UPI ID, bank account details, amount to be paid to the winner, etc.). Members can directly transfer the funds from their bank account to the winner’s bank account. They also need to update the transaction ID in the Money Club app immediately after making the payment.

Q4. What is the amount charged by Money Club?

A:

  • Commission
    • This new commission structure is applicable for the clubs formed under the terms and conditions version 8 and above.
    • The commission of every user will be calculated based on the tables below and it is the percentage of the total pooled club amount. (For example – If a user’s current commission is 2% and he participates in a club of 10,000 INR pooled amount, then he would pay 200 INR as commission to The Money Club when he wins the round.)
    • The commission for the Pilot club is fixed at 40 INR.
    • The commission will be taken as the average of the three factors – Real closed clubs, contribution amount & weighted average transfer time.
    • The commission(%) will keep on changing and it ranges from [4.0 – 0.5] % depending on these three factors.
Real Clubs Closed Commission(%)                      
0-3 4
4-6 2.5
7-9 2.25
10-11 2
12-15 1
16-20 0.75
20+ 0.5
Contribution amount(INR)* Commission(%)
0-20000 4
20001-35000 3.5
35001-75000 2.5
75001-100000 2
100001-150000 1
150001-200000 0.75
200001+ 0.5
Wt Avg Transfer Time (Hours)** Commission(%)
24+ 4
18.1-24 3.5
10.1-18 3
6.1-10 2
3.1-6 1.5
1.1-3 1
0-1 0.5

For example – If a user has closed 4 real clubs whose total contribution amount is 22000 INR & weighted average transfer time is 1.5 hours, then his commission would be –

Commission(%) = (2.5+3.5+1)/3  = 2.33 % (Refer above tables to understand the calculations)


* –Contribution amount =       

Contribution amount paid by user in every round
                +

Money Club credits used by user
                +

Winning bid amount by user in club
                +

Penalty paid by user to Money club
                +
Commission paid by user to Money club

**- Weighted average transfer time  –
Your recent transactions have more weightage than the earlier transactions. So if you want to improve your weighted average transfer time, then try to complete your upcoming transactions at the earliest and your weighted average transfer time will improve faster.

For example, suppose there are total 5 transactions. The 1st transaction’s weight is taken as 1 and it’s multiplied by the transfer time. The 2nd transaction’s weight is taken as 2 & so on and it will be divided by n(n+1)/2 where n is the number of your transactions.
1st transaction transfer time  = 12 Hours
2nd transaction transfer time = 10 Hours
3rd transaction transfer time = 4 Hours
4th transaction transfer time = 2 Hours
5th transaction transfer time = 1 Hour

Weighted average transfer time = 12*1 + 10*2 + 4*3 + 2*4 + 5*1 / 5(5+1)/2 = 3.8 Hrs

 

Q5. Where and how does the bidding takes place?

A: Bidding takes place in the Money Club app. All the club members can join live bidding by logging in to the Money Club app. Bidding window also allows the club members to chat.

Read more..

 

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