Escrow Instructions (Stripe Connect)
These Escrow Instructions outline how payments are processed and held for Commissions on Otterkin. While Otterkin is not a licensed escrow agent, it uses Stripe Connect, a third-party payment processor, to manage payments between Patrons and Artists in accordance with these Terms.
1. Initiating a Commission
When a Patron requests a Commission, no payment is taken until the Artist accepts. Upon acceptance:
- 50% of the artwork price is charged to the Patron.
- A 3.5% Patron levy is also applied and charged on top of the 50% instalment.
- These funds are held via Stripe Connect in a dedicated account.
2. Completion and Final Payment
Once the Artist completes the Commission and the Patron approves it:
- The remaining 50% of the artwork price is charged.
- The second 3.5% Patron levy is applied to this final instalment.
- These funds are also held via Stripe until they are released to the Artist.
3. Release of Funds to the Artist
Funds are released in two parts:
- The first 50% (minus fees) is released after the Artist accepts the Commission and work has commenced.
- The remaining 50% (minus fees) is released after completion and Patron approval.
Otterkin deducts its 17.5% commission on the total value of the artwork, applied proportionally to each release. Applicable disbursement fees are also deducted prior to payment to the Artist.
4. Disputes and Delays
Otterkin may delay or cancel the release of funds in the event of a dispute, breach of Terms, or any concerns regarding legality or platform integrity.
If a dispute arises, the parties must follow the steps outlined in Otterkin User Agreement - Section 13 – Dispute Resolution, Arbitration, and Scope, including the 60-day informal resolution window and binding arbitration process if unresolved. See Section 13 for full details.
5. Authorisation
By engaging in a Commission through Otterkin, both Patrons and Artists authorise Otterkin to instruct Stripe to:
- Process and hold funds;
- Release funds upon fulfilment of the agreed Commission milestones;
- Deduct service and platform fees where applicable.