How Bidding Works
Turn 10 months into 9
In a Duti Bidding Circle, members who want their payout earlier can bid for it. The bids create a bonus pool that eventually pays out an extra member — saving everyone a month of deposits.
The 90-Second Version
Ten friends, ten deposits
Every month each member puts $1,000 into the pot (total $10,000).
Early-bird bidding
Want cash earlier? Bid a fee (e.g. $2,200). Highest bid wins that month; the fee goes to the bonus pool.
The bonus payout
When the bonus pool reaches $10,000, an extra member gets paid immediately — no bid required.
Everyone saves a month
The circle finishes after 9 deposits instead of 10. Each member keeps $1,000 in their pocket.
Step-by-Step Breakdown
Circle Begins
The organizer (Member #1) takes the first pot of $10,000. No bidding this month — it's a reward for organizing the circle.
Bidding Starts
Members who want the pot this month submit bids. Member #7 bids $3,200 and wins. They receive $10,000 - $3,200 = $6,800. The $3,200 bid goes to the bonus pool.
Pool Grows
Bidding continues. Each winning bid adds to the bonus pool. Members who bid higher get paid sooner but receive less of the pot.
Bonus Triggered!
The bonus pool reaches $10,000! Two members get paid this month: one from the regular pot, and one from the bonus pool. This is the magic of the system.
Circle Complete
After just 9 months, all 10 members have been paid. Any remaining bonus pool balance is split equally among all members.
Why Would Someone Bid?
Urgent Need
Life happens — medical bills, business opportunities, emergencies. Bidding lets you access funds when you need them most.
Investment Opportunity
If you can earn more with the money than your bid costs, it makes financial sense to bid high and get paid early.
Time Value of Money
Money today is worth more than money tomorrow. Some members prefer to pay a premium for early access.
Why Would Someone Wait?
No Urgent Need
If you don't need the money right away, waiting means you receive the full pot amount without any deduction.
Bonus Pool Share
Patient members still benefit! When the bonus pool is distributed at the end, everyone gets an equal share.
Lower Risk
Waiting guarantees you'll receive at least your contribution back, plus the monthly savings.
Real Numbers Example
A 10-member circle with $1,000 monthly deposits
| Member | Paid | Received | Net |
|---|---|---|---|
| #1 (Organizer) | $9,000 | $10,000 | +$1,000 + bonus |
| #7 (Bid $3,200) | $9,000 | $6,800 | -$2,200 + bonus |
| #6 (Last, no bid) | $9,000 | $9,500 | +$500 + bonus |
See It In Action
Our interactive simulator walks you through a complete 9-month cycle. Watch how bids accumulate, when the bonus triggers, and how everyone benefits.
Launch Interactive SimulatorCommon Questions
If no one bids, members are paid in a predetermined order (often by seniority or random draw). The circle takes the full 10 months.
You can adjust your bid until the bidding deadline each month. The highest bid at deadline wins.
Communication is key. Talk to your circle organizer. Missing payments affects the entire group and may have consequences.
Duti uses secure ACH transfers and escrow accounts. Your contributions are held safely until distributed.