Last Updated: May 26, 2026
Version: 1.0
Effective Date: 2026-05-22
Governing Law: Federal Republic of Nigeria
This policy forms part of the Kushi Terms of Service and is incorporated by reference into the Kushi Tenancy Agreement/Mandate.
The caution fee is a refundable security deposit set by the host on a per-listing basis. Kushi acts as a neutral custodian — holding the caution fee in escrow on behalf of the host for the duration of the tenancy and any applicable claim window thereafter.
Kushi does not own the caution fee. It holds it as a fiduciary obligation and is obligated to disburse it to the appropriate party (host or guest) in accordance with the terms set out in this policy, the Tenancy Agreement/Mandate, and applicable Nigerian law.
In exchange for providing escrow services, Kushi charges a custody fee of 5% of the caution fee amount, collected from the guest at the time of booking.
| Item | Rate | Timing | Refundable? |
|---|---|---|---|
| Caution custody fee | 5% of caution fee | Charged at booking | No |
The custody fee is non-refundable. It is earned by Kushi at the point of booking confirmation, regardless of the eventual outcome of the tenancy or any caution claims.
Example: Caution fee = ₦300,000. Custody fee = ₦15,000. Total collected from guest = ₦315,000. Kushi retains ₦15,000; ₦300,000 is held in escrow.
The amount held in escrow for disbursement to the host is the caution fee net of the custody fee. Total host claims cannot exceed caution_fee × (1 − 0.05) (i.e., 95% of the stated caution fee).
A host may file a claim against the held caution fee at any time during or after the tenancy, provided the tenancy has commenced and the 14-day post-tenancy claim window has not expired (see Section 7).
caution_fee × 0.95 (net of the 5% custody fee already retained by Kushi).Claims are filed through the Kushi platform. Upon submission, the system will:
Upon the submission of any host claim, the guest will receive an immediate notification via:
The notification will state the claim amount, the host's stated reason, and the deadline to respond.
The guest has 5 business days to take one of the following actions:
| Action | Outcome |
|---|---|
| Approve the claim | Kushi releases the claimed amount to the host. |
| Dispute the claim | Kushi's Dispute Resolution Team is engaged (see Section 6). |
| No response (silence) | Escalation to Kushi support (see Section 5). Silence does NOT auto-approve the claim. |
If the guest does not respond within the notification period, Kushi customer support will initiate a structured follow-up before any action is taken on the claim.
If the guest remains unresponsive after the escalation sequence, the Kushi Dispute Resolution Team may, at its sole discretion:
based on the evidence submitted by the host, the tenancy record, and any other relevant information available to Kushi.
Important: This discretion is exercised by Kushi as a platform operator, not as a legal adjudicator. Kushi's decision in a silent-guest case does not preclude either party from pursuing independent legal remedies. The Tenancy Agreement/Mandate must include a clause acknowledging and accepting this process.
A dispute is triggered when the guest formally contests a host claim through the Kushi platform within the notification period.
A fixed dispute fee of ₦10,000 is deducted from the caution escrow pot upon the opening of each dispute. This fee covers Kushi's mediation costs and is non-refundable regardless of the dispute outcome.
| Item | Amount | Charged To | Timing |
|---|---|---|---|
| Caution dispute / mediation fee | ₦10,000 | Deducted from caution pot | Upon dispute opening |
Evidence Submission: Both parties are notified and given a defined period (recommended: 5 business days) to submit evidence. This may include photographs, inspection reports, communication records, receipts, and any other documentation relevant to the claim.
Investigation: The Kushi Legal/Dispute Team reviews all submitted evidence, the signed Tenancy Agreement/Mandate, and the tenancy history on the platform.
Decision: The Kushi Dispute Resolution Team renders a binding decision on the platform, determining whether to release the disputed amount (in full or in part) to the host, or to retain it for the guest.
Legal Referral: Where the Kushi Dispute Resolution Team determines that the matter exceeds the platform's scope of resolution, or where fraud, criminal conduct, or significant property damage is alleged, the team may recommend that the affected party pursue the matter through formal legal channels.
Disputes involving caution fee claims are governed by:
The host has 14 days after the official tenancy expiry date to file any outstanding caution claims. This window begins at midnight on the day following tenancy expiry.
After this 14-day window closes with no pending or new claims, the remaining escrow balance becomes freely refundable to the guest.
For the refund to become available, there must be:
If a claim is filed before the window closes, the relevant portion of the escrow remains locked until the claim is resolved (approved, disputed, or declined).
Once the 14-day post-tenancy claim window has closed and no claims are pending, the guest's remaining caution balance is eligible for refund.
Refunds are processed automatically by the platform once the guest submits valid bank details and there are no pending holds on the escrow balance.
Kushi will proactively notify guests to claim their caution refund to prevent unclaimed balances accumulating on the platform.
| Trigger | Channel | Content |
|---|---|---|
| Claim window closes (Day 0 + 14) | In-app + Email | Notify guest that refund is available; request bank details |
| 7 days after first refund notification (if unclaimed) | In-app + Email | Follow-up reminder with direct link to submit bank details |
If the guest fails to claim their refund after both notifications, Kushi support may attempt further contact. Unclaimed escrow balances will be governed by Kushi's dormant funds policy (to be defined separately).
This policy is governed by and construed in accordance with the laws of the Federal Republic of Nigeria.
| Instrument | Relevance |
|---|---|
| Tenancy Law of Lagos State 2011 | Security deposit obligations, landlord duties, refund timelines (Lagos properties) |
| Recovery of Premises Act Cap R4 LFN 2004 | Tenancy disputes in non-Lagos states |
| Stamp Duties Act Cap S8 LFN 2004 | Stamp duty obligations on tenancy instruments |
| Nigerian Data Protection Regulation (NDPR) 2019 | Processing of personal data in connection with KYC and dispute proceedings |
Any dispute arising from the application of this policy that cannot be resolved through Kushi's internal dispute resolution process shall be referred to a court of competent jurisdiction in Nigeria.
This policy is owned by the Kushi Legal & Compliance team. Any amendments must be reviewed and approved by the Legal & Compliance team and the Chief Executive Officer before taking effect. Version history will be maintained and all updates will be communicated to users through the platform's terms of service update mechanism.