Frequently Asked Questions

Find answers to common questions about ChopUp and digital savings groups

Getting Started

What is ChopUp?

ChopUp is a digital platform that brings traditional Ajo and ROSCA (Rotating Savings and Credit Association) savings groups onto the blockchain. It allows you to create or join cryptocurrency savings groups with automated payouts, multi-token support, and complete transparency.

What is Ajo or ROSCA?

Ajo (also known as ROSCA) is a traditional savings system where a group of people regularly contribute a fixed amount of money. Each cycle, one member receives the collective pot. This rotates until everyone has received a payout. ChopUp digitizes this system using blockchain technology.

How do I get started?

Download the ChopUp mobile app, create an account with your wallet or phone number, complete KYC verification, and then you can create a new savings group or join an existing one.

Do I need cryptocurrency to use ChopUp?

You can start with our fiat on-ramp feature using Paystack to buy cryptocurrency directly in the app. We support ETH, USDC, and other ERC-20 tokens on the Base blockchain.

Groups & Contributions

How do I create a savings group?

Go to the Groups section in the app, tap "Create Group," set your group parameters (contribution amount, frequency, number of members, token type), and your group will be created on the blockchain with a unique smart contract.

How many people can join a group?

Groups can have between 2 and 50 members. The group creator sets the maximum number of members when creating the group.

What tokens are supported?

ChopUp supports ETH (native Base token), USDC, USDT, DAI, and other ERC-20 tokens on the Base blockchain. Each group uses a single token type chosen at creation.

How often do I need to contribute?

Contribution frequency is set by the group creator and can range from daily to monthly. Each group has its own cycle duration and schedule.

What happens if I miss a contribution?

Missing contributions may result in a penalty (typically 10%) and could affect your eligibility for future payouts. The smart contract enforces these rules automatically.

Payouts & Funds

How are payouts distributed?

Payouts are automatically distributed by smart contracts at the end of each cycle. The rotation order is determined when the group is created, ensuring fairness and transparency.

When will I receive my payout?

Your payout position is assigned when you join the group. You can view your position and estimated payout date in the group details.

Can I withdraw my funds early?

Early withdrawal policies depend on the group settings. Some groups allow it with penalties, while others require you to complete the full cycle. Check your group's rules.

Are there any fees?

ChopUp charges a small platform fee (typically 1-2%) on contributions. Gas fees for blockchain transactions are also required but are minimal on Base blockchain.

Security & Compliance

Is ChopUp secure?

Yes. All transactions are secured by blockchain technology and smart contracts. Your funds are held in decentralized smart contracts, not by ChopUp, ensuring maximum security and transparency.

What is KYC and why is it required?

KYC (Know Your Customer) is identity verification required for regulatory compliance. ChopUp uses a tiered KYC system - basic verification for small amounts, enhanced verification for larger transactions.

What happens if a member doesn't pay?

Smart contracts automatically enforce contribution rules. Members who miss payments face penalties and may be removed from future cycles. This protects all group members.

Can the group admin steal funds?

No. Funds are held in smart contracts, not by admins. Admins can manage group settings and members, but they cannot access or transfer group funds outside of the programmed rules.

Technical Questions

What blockchain does ChopUp use?

ChopUp is built on Base, a Layer 2 blockchain that offers the security of Ethereum with faster transactions and lower fees.

What are smart contracts?

Smart contracts are self-executing programs on the blockchain that automatically enforce the rules of your savings group. They handle contributions, payouts, and penalties without human intervention.

Do I need a crypto wallet?

ChopUp provides an embedded wallet, but you can also connect external wallets like MetaMask or Coinbase Wallet for more control over your assets.

What if I lose access to my account?

Keep your recovery phrase safe! With phone authentication, you can recover via SMS. For wallet-based accounts, your recovery phrase is the only way to restore access.

Still have questions?

Our support team is here to help you get started with ChopUp