Escrowed Funds Transfer

Overview

In the above diagram, the blue solid lines represent flows of money into and out of nFiniti. The green dotted lines represent transfers of funds within the system. Note that this transfers are virtual, no funds leave the nFiniti segregated client money account.

Description

Customer 1 is an investor who holds two vaults, a Default vault and an Escrow vault. The customer also has set up two fund sources, a debit card, and a bank account.

Customer 2 is an investee who also holds two vaults, one to receive the invested funds, and one to hold income generated from the investment to pay back to the investors. The customer has also created a bank account fund source.

Workflow

1. Customer 1 adds funds to their wallet using either or both of their fund sources.

2. At some point in time the customer decides they want to transfer some funds to Customer 2 in order to secure an investment perhaps.
   In this case the client has created an escrow wallet for the customer. Rather than transferring funds directly to Customer 2, the funds are transferred into the escrow wallet, where they are held until the client decides the investment can go ahead.

3. The client determines that the conditions to complete the project have been met and the funds are transferred from Customer 1's Escrow wallet to Customer 2's Project wallet.

4. The client transfers the funds from Customer 2's wallet to a fund source set up against Customer 2.

5. The investment generates income which Customer 2 needs to pay back to the investors. Customer 2 transfers the income funds from their funding source into a their Project income vault.

6. The client can then determine the proportion of the income owed to each customer and transfers the correct amount from Customer 2's Project Income vault to to Customer 2's Default vault, where the customer can the choose to reinvest or withdraw the funds.

More info

In this example, the escrow wallet is held by the customer, and it is up to the nFiniti client to ensure that the customer cannot withdraw funds from this wallet.

An alternative solution might be to have the escrow wallets held by Customer 2, or even a third party all together. However if this is the case care must be taken to ensure that the investments can be tracked back to the original investor.