💡 In simple words: A way for people to lend and borrow small amounts of money kindly and fairly.

⚠️ Not yet approved. This page describes a proposal that is still under community review. It is documented here so it can be discussed, improved and endorsed.

Use Case: Microcredit & Mutual Aid — Transparent Contracts for Tontines and Aid Circles

📋 Use Case Overview

TypeMutual aid & microcredit circle

Maturity⭐☆☆☆☆ (concept phase)

User Group(s)Microcredit User Group

Ring(s)Financial Solidarity Ring

Active funders8 (illustrative)

Contracts signed0 (pre-launch)

Cash/Miles ratio35% / 65% (Boost-dependent)

Avg. satisfaction— (pre-launch)

DeploymentRegional

ProgrammeMicrocredit Programme

All figures are illustrative unless otherwise stated.

Table of Contents

1. Context & Problem

Tontines, mutual aid circles, and community savings groups are among the oldest and most widespread forms of financial solidarity in the world. In West Africa, a tontine might involve 20 people each contributing CHF 100 per month — the pot rotates, each member receives it once. In South Asia, similar systems are called chit funds. In Latin America, tandas or juntas. In diaspora communities across Europe, these informal systems continue despite the availability of formal banking.

Why do they persist? Because they work. They are trusted, flexible, and community-governed. Banks can't replicate the social trust that makes them function.

But they have serious vulnerabilities:

No formal contracts: Most tontines operate on verbal agreements and social trust alone. When someone defaults or disputes a payment, there is no written record.
Opacity: The organizer (often called the "banker") handles all the money. Members have no independent visibility into contributions and distributions.
Dispute resolution: Disputes are handled informally, often damaging community relationships permanently.
Legal uncertainty: In many jurisdictions, tontines and mutual aid circles operate in a legal grey zone — neither regulated nor illegal, but vulnerable to fraud.

The challenge: add transparency and legal structure without destroying the community trust and flexibility that makes these systems work. The solution should not require participants to deal with banks, lawyers, or bureaucracy.

2. The WikiDeal Concept

WikiDeal offers mutual aid circles a lightweight contract Infrastructure that provides transparency without bureaucracy:

Circle Agreement: A formal but simple agreement signed by all members at the founding of the circle. Covers contribution amounts, rotation order, default procedures, and exit terms.
Contribution tracking: Each contribution is recorded as a micro-contract — timestamped, signed by both the contributor and the organizer. No disputes over "did you pay this month?"
Distribution protocol: The rotation order, decided by lot or by agreement, is recorded and published to all members. No secret decisions.
Default handling: If a member defaults, the WikiDeal default protocol activates — the AI proposes a remedy (payment plan, exclusion, partial distribution) based on the circle's own rules.
Dispute resolution: A WikiDeal human intermediary can be called in for disputes. They have access to the full Transaction record and the circle agreement.

WikiDeal does not handle the money. It handles the contracts and records. Payments can still be made in cash, via bank transfer, or mobile money — WikiDeal simply records that they happened.

3. User Journey (7 steps)

Circle Formation

The organizer creates a WikiDeal mutual aid circle. They define: number of members (max 50 for simplicity), monthly contribution amount, currency, rotation method (random lot / voluntary / fixed order), and duration. The system generates a circle agreement template.

Member Onboarding

Each member receives a link to review and sign the circle agreement digitally. Signing requires identity confirmation (email + phone). Once all members have signed, the circle is formally constituted. The organizer receives a certificate of constitution.

Contribution Recording

Each month, as members make their contributions (however they choose to pay), the organizer records each contribution on WikiDeal. Each recording generates a timestamped confirmation sent to both the contributor and all members. The running total is visible to everyone.

Rotation and Distribution

When the pot is ready for distribution, the rotation order (pre-agreed or drawn by lot via WikiDeal's transparent random function) determines the recipient. The distribution is recorded as a formal Transaction. The recipient signs a receipt.

Default Protocol (if needed)

If a member misses a contribution deadline, the system automatically notifies all members (with privacy settings the circle can configure). The default protocol defined in the circle agreement activates — grace period, penalty, or exclusion — with full audit trail.

Dispute Resolution

Any member can initiate a formal dispute. A WikiDeal intermediary reviews the records and the circle agreement, contacts the parties, and proposes a resolution. The intermediary's fee (CHF 50–100) is charged to the circle's contingency fund (a small optional reserve the circle can set aside).

Circle Closing & Record Archive

At the end of the cycle, WikiDeal generates a final report: all contributions, all distributions, all disputes resolved. The report is signed by all members and archived for 5 years. The circle can renew for a new cycle or dissolve with full record export.

4. Model Contract (simplified)

📋 Mutual Aid Circle Agreement (WikiDeal Template)

Article 1 — Circle Identity Circle Name: [Name chosen by members] Organizer: [First Name Last Name], WikiDeal ID [XXXX] Members: [List of member names and WikiDeal IDs — see Annex A] Number of members: [N] · Duration: [N] months (one cycle)

Article 2 — Contributions Each member undertakes to contribute [amount] [currency] per [month/week] no later than [day X] of each period. Contributions are recorded by the Organizer on the WikiDeal platform within 48 hours of receipt. Each recording generates a confirmation to all members.

Article 3 — Distribution The pot is distributed to one member per period in the following order: [random lot drawn at constitution / pre-agreed order — see Annex B]. Each distribution is recorded and acknowledged by the recipient within [3 days].

Article 4 — Default A member who fails to contribute within [5 days] of the deadline is in default. Grace period: [5 additional days]. After the grace period, the default is formally recorded. The Organizer may, with majority vote of members, [delay the defaulting member's turn / reduce their distribution / exclude them from the circle], as defined in Annex C.

Article 5 — Dispute Resolution Any dispute between members, or between a member and the Organizer, shall be submitted to the WikiDeal Dispute Resolution Service before any legal action. The dispute resolution fee is covered by the circle's contingency reserve (Article 6).

Article 6 — Contingency Reserve (optional) Each member contributes [amount] to a contingency reserve at the start of the cycle. The reserve covers: dispute resolution fees, default compensation, and unforeseen costs. Unused reserve is distributed equally at circle closing.

5. Concrete Scenario

💰 Example: Diaspora Tontine, Geneva

Situation: A group of 12 women from the same Senegalese village, now living in Geneva, have been running a tontine for 8 years. Each contributes CHF 200/month (total pot: CHF 2,400 per month). The tontine has always worked on trust — but last year, a dispute over a missed contribution nearly destroyed the group. Two members stopped speaking.

The challenge: Formalize enough to prevent future disputes without making the tontine feel like a bank or a bureaucracy. The organizer (Fatou) wants to keep the social warmth of the tontine while adding a paper trail.

WikiDeal Migration:

Fatou creates a WikiDeal circle. She inputs the 12 members' details and the existing rotation order (already agreed for the next cycle).
All 12 members sign the circle agreement digitally. Time required: 20 minutes total (Fatou sends the link via WhatsApp, members sign on their phones).
Each month, Fatou records contributions as they arrive. Members receive instant confirmation via SMS — no more "did you record my payment?"
When a member is late (month 4), the system sends a gentle reminder to all members. The member pays 3 days late — recorded with a note. No dispute. No damaged relationship.
At cycle end: full report generated, signed by all 12 members. The group starts a new cycle. Three other tontine organizers from the same community contact Fatou to learn how.

Cost: WikiDeal Membership (Infrastructure fee for circles under 20 members). Value: One prevented dispute = priceless.

6. Frequently Asked Questions

Is a tontine legal in Switzerland / France / other countries? In most jurisdictions, informal mutual aid circles are legal when they do not constitute a regulated financial activity (no interest charges, no profit). WikiDeal provides contracts for documentation purposes — it does not regulate or license financial activities. Consult a local legal expert for jurisdiction-specific questions.

Does WikiDeal handle the money? No. WikiDeal only records Transactions. Money flows happen outside the platform — cash, bank transfer, mobile money (M-Pesa, Orange Money, etc.). WikiDeal is the contract layer, not the payment processor.

What if the organizer disappears? All records are stored on WikiDeal's decentralized platform. Any member can request a full export of circle records. A replacement organizer can be appointed by majority vote — this is a standard clause in the circle agreement template.

Can the contract be in a language other than English? Yes. WikiDeal contract templates are available in French, Portuguese, Arabic, and Swahili in addition to English. Members can choose the display language independently of the contract's governing language.

What about larger mutual aid structures (credit unions, cooperatives)? WikiDeal's tontine module is designed for informal circles of up to 50 members. Larger structures (credit unions, formal cooperatives) require integration with regulated financial systems — WikiDeal can serve as the contract layer while partnering with licensed financial institutions for the payment Infrastructure.

📊 Success Indicators

Key performance indicators for the Microcredit & Mutual Aid marketplace use case. These targets are indicative and community-modifiable as the programme matures.

Active Loan Portfolios

≥ 30 / quarter

Number of active microcredit agreements in the system per quarter

Default Rate

< 8%

Percentage of loans with missed payments exceeding 60 days

Average Loan Amount

CHF 200–2000

Target range for microcredit — accessible but bounded

Repayment Rate (12m)

≥ 85%

Percentage of loans fully repaid within agreed term

Community Pool Growth

+10% / year

Annual growth of the mutual aid pool from contributions

Interest Rate Charged

0–3%

Platform charges at-cost only; target is 0% for small amounts

→ See also: WikiDeal Socio-Economic Success Criteria

✅ Quality Criteria

ISO-inspired quality standards for the Microcredit & Mutual Aid use case. Standards are reviewed annually by the community.

Standard	Dimension	Criteria	Target
QS-MC-001	Risk Assessment	All loan applications go through WikiDeal's evidence-based scoring (financial history, community reputation, guarantor review). Human review required above CHF 500.	100% scored + human review > CHF 500
QS-MC-002	Transparency	Borrowers receive full cost breakdown before accepting. Zero hidden fees. All terms in plain language.	100% transparent pricing
QS-MC-003	Community Safety	Mutual aid pool contributions and distributions audited quarterly. Full report published to all members.	Quarterly public audit
QS-MC-004	Borrower Support	Any borrower at risk of default (30+ days late) receives automated support offer + human advisor outreach within 48h.	100% proactive outreach
QS-MC-005	User Satisfaction	Borrower satisfaction survey after loan closure. Target: ≥ 80% would use again.	≥ 80% would repeat

→ See also: WikiDeal Socio-Economic Success Criteria

Portal structure (model)

This portal follows the standard WikiDeal market-portal structure. Each market portal offers the same set of content types (the base contract, models, amendments, addenda, lawyer-validated contracts, legal references, compensation, etc.), even when some are still empty:

📋 Portal structure — how this market portal works
Rules of the game	Portal Main — the governing conventions for this portal
Base contract	Contract Base — the foundation contract and its clause cultures
Models	Contract Model(s) — concrete models built on the base
Amendments	Base Amendment · Model Amendment
Addenda (avenants)	Base Addendum · Model Addendum
Lawyer-validated	Contract Validated — contracts validated by lawyers
Legal references	Legal Reference — by country and language
Compensation	Compensation — Conditions · Pricing & Scales · Miles Credits
Use cases	Use cases — real pilot examples
Common errors	Common errors — frequent mistakes to avoid
Alerts & risks	Alerts & risks
Statistics	Usage statistics
Tutorials	Tutorials · FAQ
Debates	Debates (Talk)

Some sections may still be empty — they are listed so the structure is available and ready to fill.