Learn

Where the money sits, in three categories.

The Custody Framework defines how funds in any Circlworld Circle are held. Three categories cover every situation: regular cycle contributions (your Circle chooses), loans and the Circle Protection Reserve (always escrow), cross-border Circles (always escrow). This guide explains each, with a decision matrix and the vote procedure for the choice you make at Circle formation.

This is a guide. The constitutional source is the Custody Framework Charter v1.0 (currently live; counsel posture confirmed 2026-06-05). In any conflict, the Charter governs.

The three categories

Category A

Regular cycle contributions

Your Circle chooses how to hold the money.

Applies to: Routine monthly (or weekly, fortnightly, quarterly) contributions to a single-jurisdiction Circle.
Custody model: Member-to-member OR escrow-held — Member vote at Circle formation
Member vote: Required

When this applies

Every Member of the Circle resides in the same jurisdiction.
The cycle contributions are the only money handled — no lending pool, no Circle Protection Reserve, no cross-border funds.
The Circle has agreed Bylaws and a passed membership.

What to know

At Circle formation the Members vote between two options: member-to-member custody (each round, Members contribute directly to whoever is due that cycle's payout; the Treasurer governs the rotation and records each contribution but does not handle the money) OR a dedicated Circle account at a regulated bank or credit union.
Both options are constitutional under the Custody Framework. Members' preferences should be honoured. The member-to-member model honours the traditions where it has worked for generations (Pardna, Susu, Chama); the dedicated-Circle-account model adds institutional protection. Funds are never held by the Treasurer's personal account, and never by Circlworld.
Mid-cycle custody-model changes require a 75% supermajority Member vote (Charter §6.2). This is intentionally a high threshold — the Custody choice is foundational to the Circle.
Treasurer compensation under the TEP fee mechanism is identical regardless of which model is chosen.

Category B

Loan accounts and Circle Protection Reserve

Always escrow-held. No Member vote.

Applies to: Loan accounts the Circle operates and the Circle Protection Reserve (CPR — 10% of contributions, held against catastrophic events).
Custody model: Escrow-only (multi-signature, regulated bank or credit union)
Member vote: Not permitted

When this applies

The Circle operates a lending pool (any Lending Center level — L0 informal, L1 platform-facilitated, L2 institutional partnership).
The Circle maintains a CPR balance per the Bylaws Exit & Reserve Policy v1.1.
A Member has taken a loan from the Circle and the Circle is holding the loan account.

What to know

These funds are constitutionally partner-institution-only — no Treasurer-personal-account option, no Member vote to override. The reason is the larger consequence of loss: a missed loan repayment or a CPR shortfall affects more Members and is harder to reverse than a single missed cycle contribution.
The escrow account is multi-signature, opened in the name of the appropriate co-operative legal form (the Circle, the federation, or the Pool Committee), at a regulated bank or credit union.
The platform never holds these funds. Circlworld is the platform; the bank or credit union is the custodian.
Operating the escrow requires the platform-recommended signing rotation and quarterly internal review.

Category C

Cross-border Circles

Cross-jurisdiction Circles are always escrow-only.

Applies to: Any Circle whose Members reside in more than one jurisdiction, OR whose Treasurer resides in a different jurisdiction from any Member, OR whose currency is mismatched across Members.
Custody model: Escrow-only (separate escrow accounts per jurisdiction)
Member vote: Not permitted

When this applies

Members reside in more than one jurisdiction (e.g. UK + Jamaica diaspora Circle).
The Treasurer resides in a jurisdiction different from at least one Member.
Members contribute in different currencies (e.g. GBP + JMD + USD).

What to know

Cross-border Circles add jurisdictional and currency-conversion complexity that a Treasurer-coordinated member-to-member model cannot reliably absorb. The constitutional position is partner-institution escrow only.
Separate escrow accounts are opened in each Member-residency jurisdiction at a regulated bank or credit union. Member contributions flow to their own jurisdiction's escrow.
Currency conversion happens at cycle disbursement with the platform's FX-cost transparency commitment — actual cost disclosed, no hidden margin.
A Member relocating mid-cycle to a new jurisdiction triggers a Bylaws review per Charter §5. The Circle decides whether to continue with the relocated Member; if not, voluntary departure per Bylaws Category A applies.

Decision matrix — which category fits your Circle?

A Circle may fall into more than one category. The most-restrictive applicable category governs the funds it touches.

Your Circle’s situation	Category	Custody outcome
A single-jurisdiction Pardna Circle, monthly cycles only, no loan pool, no CPR contribution.	A	Member vote: Member-to-member OR escrow-held.
A single-jurisdiction Pardna Circle, with CPR contribution at 10%.	A + B	Cycle contributions: Category A (Member vote). CPR: Category B (escrow-only).
A single-jurisdiction Circle with a small L0 informal loan pool funded by some Members.	A + B	Cycle contributions: Category A (Member vote). Loan pool: Category B (escrow-only).
A diaspora Circle with Members in the UK and Jamaica.	C	Escrow-only across the board. No Member vote on custody model.
A diaspora Circle (UK + Jamaica) with a federation-level lending pool.	A + B + C	All funds escrow-only. The cross-border position governs.
A UK-resident Circle that adds two Australia-resident Members mid-cycle.	C	The Circle now triggers Category C. Bylaws must be updated with a 75% supermajority vote; new escrow architecture required.

The Category A vote procedure

For Category A Circles, the Members vote between member-to-member custody and a dedicated Circle account at Circle formation. The vote is recorded in the Circle’s Bylaws.

Bylaws drafting (founder + Treasurer)
During Circle formation, the founder + Treasurer draft the Bylaws. The Bylaws name the custody-model options the Members will choose between (member-to-member / dedicated Circle account).
Member consultation
Before the vote, the founder shares the implications of each option with the Members. The information includes: how funds are held in each model, the cost of opening an escrow account (typically negligible for a CU; bank fees vary), the Treasurer's preferred model (which the Members may or may not honour), the tradition's historical practice (relevant for Pardna, Susu, Chama Circles).
Vote
The vote is recorded on the platform. Simple majority decides — there is no higher threshold for the initial choice. Quorum is the platform default (75% of joined Members; this is configurable per the Bylaws but rarely is).
Bylaws record
The vote outcome is written into the Bylaws document and persisted with the Circle. The Treasurer opens the chosen account before contributions begin.
Mid-cycle changes (rare)
A Circle may change its Category A custody model mid-cycle by a 75% supermajority Member vote. This is intentionally a high threshold — the Custody choice is foundational. The Treasurer cannot trigger this change unilaterally.

Why three categories?

The Custody Framework reconciles two principles that pull in different directions. The Cultural Architecture Policy v2.0 honours the traditions that have worked for generations — Pardna Treasurers in Jamaica, Susu collectors in West Africa, Chama leaders in East Africa — where the Treasurer governs the rotation and Members contribute through trusted channels. The non-custodial principle, refreshed in the 2026-06-19 sweep, says Circlworld never holds Member funds and the Treasurer’s personal account is never the custody venue.

The Framework’s resolution: under Category A, Members choose between member-to-member contributions (the cultural model) and a dedicated Circle account; partner-institution escrow governs Category B (loans, CPR) where the consequence is larger, and Category C (cross-border) where jurisdictional and currency complexity exceeds what either Category A option can reliably absorb. The Circle decides Category A; the constitutional rules govern B and C.

The Custody Framework Charter v1.0 is the constitutional source — full sections, amendment procedure, cross-references.

Read the Charter →