What is a holdback, and why do kitty groups use one?

Many groups keep back a small percentage of each payout. This is the holdback. It is set once in the group rules and applied the same way to every receiver it covers.

How it is calculated

With a pot of ₹25,000 and a 2.5% holdback, the group keeps ₹625 and the receiver gets ₹24,375. KittyPay works in whole paise and rounds half-up, so the figures shown to every member always add up exactly.

Why groups use it

• Fairness: early receivers get the money sooner, so a small holdback balances that for later members.
• A buffer: it can cover a late payment so the payout is not delayed.
• Shared costs: some groups use it for a get-together at the end of the cycle.

Agree on it in writing

Decide the percentage, who it applies to and what happens to the held amount at the end of the cycle — before the first payment. In KittyPay these rules are part of the group settings, shown to every member and recorded in the audit log if they ever change.

Holdbacks are agreements between members. KittyPay only calculates and records them; it does not keep any money.