Advanced documentation
The full system: circle types, tokenized receivables, auction mechanics, marketplace trading, and sponsorship.
Total Pot
$500
Round 3/5These docs cover the full system — circle types, tokenized receivables, auctions, marketplace trading, and sponsorship.
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Chord is a savings circle platform built on Solana. A savings circle (also called a ROSCA) is simple: a group of people agree to contribute a fixed amount at regular intervals. Each round, one member receives the full pot. Everyone contributes, everyone receives — once.
The only question is when you receive. Get the pot early, and it's like getting an interest-free loan from the group. Get it late, and you've effectively saved up a lump sum with built-in discipline. Either way, you put in the same total and get back the same total.
Chord comes in two flavors. Receivables circles give you a tradeable token representing your future payout. Auction circles let you bid to receive the pot sooner at a discount. Both can assign payout order either first-come (fixed) or randomly.
USDC
Currency
Dollar-pegged stablecoin
Flexible
Collateral
Any supported crypto asset
Up to 128
Group size
Members per circle
3 options
Frequency
Weekly, biweekly, monthly
Step by step
Every circle goes through the same stages. The rules are locked in from the start — no one can change them once the circle begins.
Someone creates a circle and sets the rules: how much to contribute, how often, how many members, and whether collateral is required. Other members review the terms and join. Once all spots are filled (and collateral is posted, if required), the circle is ready to start.
Every circle has a deadline to fill all spots. If it doesn't fill in time, the circle is cancelled and any deposits are returned automatically.
If the circle uses random payout order, there's a brief pause after all members join. The protocol generates a verifiable random number on-chain to shuffle who receives the pot in which round. No one — not even the creator — can influence the result.
This step only applies to random-order circles. Fixed-order circles skip straight to the active phase. If the designated randomness provider doesn't respond within a short window, anyone can finalize the circle using verifiable on-chain slot hashes — so a circle can never get stuck waiting.
Rounds begin on a fixed schedule. Every round, each member contributes their share. One member receives the full pot that round. This continues until every member has received the pot exactly once.
Round timing is automatic — round 1 starts when the circle activates, and each subsequent round starts exactly one period later (weekly, biweekly, or monthly). You can pay at any point during your round window.
All rounds are done. Everyone has received their pot. Any remaining collateral is unlocked and can be withdrawn. The circle is finished.
After completion, members withdraw any unclaimed payouts and collateral. Once everyone has closed out, the circle is permanently archived.
What if it doesn't fill?
If a circle doesn't fill all spots within its time window, it's cancelled automatically. Any join fees and collateral deposits are returned in full. No risk to you.
Two ways to play
Every circle is either a receivables circle or an auction circle. The creator chooses when setting up the circle. Both types can use either fixed or random payout order.
Your future payout as a tradeable asset
Bid for earlier payouts
Imagine a 5-member circle where everyone normally contributes $100 per round. The recipient gets $400 (4 other members * $100). Now member Alice bids $90 — she's saying "I'll accept a smaller pot to get it sooner."
$360
Alice receives (4 * $90)
$90
Everyone else pays this round
$10
Each member saves vs. normal
Alice gets her money sooner but accepts less. Everyone else pays less that round. Patient members who wait for later rounds save the most overall.
Who goes when
The payout order decides who receives the pot in which round. This is independent of the circle type — both receivables and auction circles can use either option.
First come, first served. The first person to join gets round 1, the second gets round 2, and so on. You know your payout round the moment you join.
The order is shuffled using verifiable on-chain randomness once all members have joined. Nobody — not even the creator — can predict or influence the result. Fair by design.
In auction circles, the initial order is fixed, but winning bids rearrange who receives which round. So even in a fixed-order auction circle, the final payout schedule evolves based on bidding.
Money in, money out
Each round, you contribute your share in USDC. The amount is set when the circle is created. In auction circles, it may be lower than the default if someone won the round with a discounted bid.
When it's your turn to receive the pot, the funds are held in escrow until you withdraw them. Payouts don't arrive automatically — you need to claim them. This gives you control over when the funds hit your wallet.
Standard payments
Fixed amount per round. If you miss a payment, your collateral covers it automatically so the rest of the group isn't affected.
Late fees (optional)
Some circles charge a late fee if you pay after the round deadline. The fee is proportional to how late you are. Check the circle's terms before joining.
Your payout, tokenized
In receivables circles, your future payout becomes a digital asset you can hold, transfer, or sell. Think of it like a voucher that fills up with money as other members contribute.
Before your payout round arrives, you can mint a receivable token representing your share of the pot. It starts empty and fills up as contributions come in.
As other members contribute throughout the round, the funds accumulate in your receivable. You can watch it fill in real-time on your dashboard.
Don't want to wait? Sell your receivable on the marketplace at a discount. The buyer gets the payout when it matures. Ownership and accounting transfer automatically.
Once the receivable is fully funded, claim your payout. If you sold part of your receivable, each holder claims their proportional share.
Your safety net
In traditional savings circles, trust is all you have. If someone takes the pot and stops paying, the group loses. Chord solves this with collateral — a security deposit that guarantees you'll hold up your end.
When a circle requires collateral, you deposit supported crypto assets (like JitoSOL or cbBTC) as a security deposit. The protocol admin can add new collateral types at any time — any token with a reliable price feed can be supported.
Your collateral is valued in real-time using Pyth oracle price feeds. The protocol always knows the current dollar value of your deposit and compares it against what you still owe in future contributions.
Your collateral health is the ratio between what your deposit is worth and what you owe. As long as your collateral value stays above the required threshold, you're in good standing. If it drops (because the asset price fell or you missed a payment), you may need to top up.
As you make contributions and reduce what you owe, your excess collateral is unlocked. When the circle completes, you withdraw everything that's left. If you deposit a yield-bearing asset like a liquid staking token, it continues earning yield while locked.
How the health check works
Your position on the gauge depends on how your collateral value compares to what you owe. Stay in the green and your collateral is untouchable.
What happens if someone defaults
If a member's collateral drops below what they owe, the protocol can partially seize it to keep the circle whole. This protects the group without wiping out the defaulting member entirely.
If your collateral value drops below the required coverage — either from a price drop or from missing contributions — your position becomes eligible for liquidation. Think of it like a margin call.
Anyone can trigger a liquidation. The protocol verifies the position is actually undercollateralized before proceeding — it can't be exploited or triggered unfairly.
A single liquidation can only cover up to 50% of what you owe. This protects you from losing everything at once and gives you a chance to top up your collateral before more is taken.
Enough collateral to cover the shortfall, plus a small bonus for the person who triggered the liquidation. The seized collateral covers your missed contributions so the rest of the group isn't affected.
Missed payments
If you miss a contribution, your collateral automatically covers it. The circle stays on track and no other member is affected. You can recover by repaying the missed amount plus any late fees.
Recovery
Had collateral seized? You can recover by repaying the shortfall plus any late interest. The protocol tracks exactly how much you owe per round so there's no ambiguity.
Need flexibility?
Life changes. The marketplace gives you options if you need to exit early, want a different round, or see an opportunity to earn by buying someone else's position.
Need to exit a circle early? List your position for sale. A buyer takes your seat — your remaining contributions and your scheduled payout round. You walk away clean.
Want an earlier round? Find another member who'd rather wait. You can swap payout positions directly within the same circle.
In receivables circles, your future payout is a tradeable token. Sell it at a discount for immediate cash, or buy someone else's receivable to earn the full payout later.
Can't afford collateral?
Not everyone has crypto to post as collateral. The sponsorship system lets someone else put up collateral on your behalf. Once you opt in, the choice is permanent for that circle — this prevents gaming.
1
Request a sponsor
Choose whether to name a specific sponsor or let anyone sponsor you. This choice is permanent for the circle.
2
Sponsor deposits
Your sponsor deposits collateral into your position. It works exactly like your own collateral — same protections, same rules.
3
Everyone wins
When the circle ends (or your debt is paid down enough), your sponsor gets their collateral back. You got access to a circle you couldn't have joined alone.
What it costs
Fees are locked in when a circle is created and never change for that circle, even if protocol-wide fees are updated later. What you see when you join is what you'll pay.
| Fee | When | Set by |
|---|---|---|
| Join fee | One-time fee when you join a circle | Protocol |
| Position sale fee | When you sell your position on the marketplace | Protocol |
| Swap fee | When you swap rounds with another member | Protocol |
| Liquidation fee | Charged on seized collateral during liquidation | Protocol |
| Late fee | When you pay after the round deadline | Circle creator |
Protocol fees are the same across all new circles. Late fees are optional and set by the circle creator — check the circle details before joining to see if late fees apply and how much they are. The circle creator also has the option to pay the join fees upfront for all members.
Quick reference
Create your first savings circle or browse the marketplace to find one that fits.