Crowdfunding Platform Agreement Generator

What is a Crowdfunding Platform Agreement?

A Crowdfunding Platform Agreement is a contract between a crowdfunding platform and a project creator that outlines the terms and conditions for listing and raising funds for a project through the platform. This agreement establishes expectations regarding platform fees, funding models, payout conditions, intellectual property rights, prohibited activities, and dispute resolution procedures.

Key Sections Typically Included:

• Platform Services Description
• Project Eligibility Requirements
• Campaign Review and Approval Process
• Funding Models (All-or-Nothing, Keep-What-You-Raise)
• Platform Fees and Payment Processing
• Reward Fulfillment Requirements
• Creator Responsibilities and Obligations
• Campaign Duration and Extensions
• Intellectual Property Rights
• Prohibited Content and Activities
• Communication Requirements with Backers
• Fund Distribution and Timing
• Tax Implications and Reporting
• Campaign Updates and Transparency
• Dispute Resolution with Backers
• Termination Conditions
• Indemnification and Limitation of Liability

Why Use Our Generator?

Our Crowdfunding Platform Agreement generator helps platforms and creators establish a comprehensive document that clearly defines the parameters for running a successful crowdfunding campaign. By outlining the rights, responsibilities, and obligations upfront, both parties can avoid misunderstandings and ensure compliance with legal and regulatory requirements.

Frequently Asked Questions

• Q: How should funding models and fee structures be addressed?

  • A: The agreement should clearly specify the funding model used (all-or-nothing, flexible funding), outline the platform's fee structure including percentage-based fees and fixed transaction fees, and detail the payment processing fees and their calculation methods. It should address when and how fees are collected, outline conditions for refunding platform fees (if ever), and specify any additional optional services with corresponding fees. The agreement should also explain the fund disbursement process and timeline, detail any reserve or holdback provisions for risk management, and address currency conversion fees for international campaigns. It should clearly outline tax reporting obligations related to funds raised and specify if the platform provides tax documentation.

• Q: What creator responsibilities and obligations should be included?

  • A: The agreement should establish the creator's obligation to provide accurate campaign information and project details, outline requirements for transparent communication with backers including regular updates and prompt responses to inquiries, and specify reward fulfillment timelines and quality expectations. It should detail the creator's responsibility to comply with all applicable laws and regulations, establish requirements for disclosing risks and challenges, and outline obligations regarding intellectual property rights and third-party permissions. The agreement should also address the creator's duty to fulfill all promised rewards or provide appropriate alternatives with backer consent, specify requirements for handling shipping and fulfillment logistics, and establish procedures for addressing delays or project changes.

• Q: How should platform moderation and compliance be handled?

  • A: The agreement should outline the platform's content review process and standards, specify prohibited campaign categories and content types, and establish the platform's right to reject, remove, or suspend campaigns that violate terms. It should detail the platform's monitoring practices during active campaigns, specify requirements for regulatory compliance including securities law, consumer protection, and charitable solicitation regulations, and outline fraud prevention measures and verification processes. The agreement should also address the platform's role in backer-creator disputes including mediation procedures, establish the reporting process for suspected violations or inappropriate content, and specify consequences for violations including account termination and fund withholding.