1. Platform and Service Fees
Otterkin charges the following fees in connection with Commissions:
- Artist Service Fee: A 17.5% commission is calculated based on the total artwork value. This fee, along with the applicable VAT on this fee, is deducted proportionally from the Artist's instalments prior to payout.
- Patron Levy: A 3.5% fee is calculated based on the total artwork value. This fee, along with the applicable VAT on this fee, is added to the Patron's total payment at checkout.
- Value Added Tax (VAT): Otterkin's Service Fee and Patron Levy are exclusive of VAT. Where applicable by law, VAT (standard UK rate of 20%) is applied strictly to Otterkin's platform fees. The Patron will pay the VAT associated with the Patron Levy at the time of checkout. The VAT associated with the Artist Service Fee will be automatically deducted from the Artist's payout. (Note: The Artist remains solely responsible for calculating and remitting any applicable taxes or VAT on the underlying price of the artwork itself).
- Gift Voucher Purchases: No Patron Levy is applied at the point of a Gift Voucher purchase. The 17.5% Service Fee component of a Gift Voucher is recognised by Otterkin at the point the Recipient claims the voucher, not at the point of purchase. Where a Gift Voucher is subsequently applied to a Commission, the 17.5% Service Fee is not deducted again from the Artist's payout in respect of the voucher-funded portion. The 3.5% Patron Levy continues to apply in full to the value of any Commission, regardless of Gift Voucher use, and is paid by the Patron via the top-up portion.
- VAT on Gift Vouchers: Gift Vouchers are treated as Multi-Purpose Vouchers under UK VAT rules. Accordingly, VAT is not accounted for at the point of voucher sale but at the point of the voucher's application to a Commission.
These fees are automatically calculated and either deducted (in the case of Artists) or added (in the case of Patrons) at the time of each payment via Stripe.
2. Authorisation of Deductions
By using Otterkin's platform, Users expressly authorise Otterkin to:
- Deduct applicable Service Fees and Levies from all Commission-related payments;
- Process and manage payments using Stripe Connect in accordance with Otterkin's Terms of Service and Escrow Instructions;
- Disburse net funds (after deductions) to the Artist upon completion of each Commission milestone or final delivery, as agreed.
- Process and apply Gift Voucher purchases and the application of Gift Voucher balances to Commissions, in each case in accordance with these Terms and the rules set out in Section 5A of the User Agreement.
3. Stripe Payment Processing and Consent
Otterkin uses Stripe Connect to process payments securely. By initiating or accepting a Commission, all Users agree to:
- The handling of their payment and banking information by Stripe, under the terms of the Stripe Services Agreement and Stripe's Privacy Policy;
- Authorise Stripe and Otterkin to initiate debit and credit entries to their designated accounts for the purposes of fulfilling Commission-related transactions;
- Accept that Otterkin is not responsible for delays, errors, or payment issues resulting from Stripe or associated financial institutions.
4. Non-Refundable Fees
Otterkin's platform fees and Patron levies are non-refundable, except as required by law or as explicitly stated in our Dispute Resolution Policy.
The following specific rules apply to Gift Vouchers:
- Unclaimed Gift Vouchers. A Gift Voucher that has not yet been claimed by the Recipient is refundable in full to the Gifter on request. No Service Fee has been recognised by Otterkin at the point of an unclaimed voucher, and no portion of the voucher value is retained.
- Claimed Gift Vouchers. Once a Gift Voucher has been claimed by the Recipient, the 17.5% Service Fee component recognised by Otterkin at the point of claim is non-refundable. The remaining 82.5% of the voucher value is held by Otterkin as a liability against future Artist payouts and is non-refundable to the Gifter; it remains available to the Recipient as Gift Credit for application toward a Commission, subject to the expiry provisions of Section 5A.4 of the User Agreement.
- Expired Gift Vouchers. Where a Gift Voucher expires under Section 5A.4 of the User Agreement, whether pre-claim or post-claim, the full face value of the voucher is absorbed by Otterkin and is non-refundable.
5. Gift Voucher Mechanics
This section sets out the financial mechanics applicable to Gift Vouchers. The substantive rules governing Gift Vouchers (eligibility, purchase, delivery, claim, expiry, refunds, application, and absorption) are set out in Section 5A of the User Agreement.
5.1 Cash Handling
Gift Voucher purchases are received into Otterkin's Stripe platform balance and held in full as a liability against potential refund until the Recipient claims the Gift Voucher.
5.2 Revenue Recognition
At the point a Gift Voucher is claimed by the Recipient, 17.5% of the face value is recognised by Otterkin as Service Fee revenue. The remaining 82.5% of the face value continues to sit in Otterkin's Stripe platform balance as a liability earmarked for Artist payouts in respect of future Commissions.
5.3 Application to a Commission
Where a Gift Voucher is applied to a Commission, the voucher balance is applied as a lump sum against the earliest charge under the Commission. Any remaining voucher balance is carried forward to subsequent charges. The Patron's Payment Method on file is debited for any shortfall at each charge.
5.4 Fee Treatment on a Commission
The 17.5% Service Fee is not deducted from the Artist's payout in respect of the voucher-funded portion of the Commission, having been recognised at the point of voucher claim. On the top-up portion of the Commission paid by the Patron, the 17.5% Service Fee is deducted as standard. The 3.5% Patron Levy applies to the full value of the Commission, regardless of Gift Voucher use, and is paid by the Patron via the top-up portion.
5.5 Absorption on Expiry
Where a Gift Voucher expires, both the recognised Service Fee component (where claim has occurred) and the held liability portion are absorbed by Otterkin as revenue. No Artist is paid in respect of an expired Gift Voucher, as no Commission has been created or completed.