How do Callo's fees work for processing Options?
options, fees, agreements
The Callo fee is a flat 5% platform fee applied to payments processed through the Callo Studio and Marketplace for Build, Slate, and Scale tiers. This fee covers infrastructure and payment processing.
1. How is it calculated?
The fee is calculated as a percentage of the gross transaction amount (the total amount the sender pays).
The Basic Formula:
Callo Fee=Gross Payment×0.05
Net to User=Gross Payment−Callo Fee
2. Real Math Calculation
Imagine a producer is paying a writer $10,000 for an option agreement through the platform.
Gross Payment: $10,000
Callo Fee (5%): $500
Net Payout to Creator: $9,500
3. How is it collected?
The fee is automatically deducted at the point of transaction.
Users do not need to send a separate payment to Callo.
When a payment is triggered via a Callo Agreement, the system calculates the 5% margin and routes the net amount directly to the recipient's connected Stripe account.
This ensures that the "messy work" of accounting and manual invoicing is eliminated.
4. Why Callo: Insurance, Security, and Risk Mitigation
If you pay a collaborator via a personal banking app or a check and a dispute arises—or the funds are misrouted—you are personally liable for that loss.
The Callo Advantage: By using Callo as your Service Provider, the transaction is governed by a professional agreement. This provides a clear audit trail that is essential for Professional Indemnity Insurance. Insurers favor platforms that use validated contracts and automated workflows because they drastically reduce the "human error" that leads to claims.
The Logistics: Stripe Connect Accounts
To receive payments, all users must link or create a Stripe Connect Account through the Callo platform. This ensures that Callo never "touches" your money directly in a way that creates risk. Instead, Stripe acts as the neutral third-party escrow and clearinghouse.
Secure Onboarding: Stripe handles all identity verification (KYC) and tax compliance.
Automated Split: The 5% fee is deducted automatically by the platform at the moment of transaction.
Direct Payouts: Funds land in your Stripe dashboard and are paid out to your linked bank account according to your chosen schedule.