The concept of Locked Funds is really simple. Every request that is processed for an Order deducts funds from your Account. However, some requests (like Transfer of a domain name from another Registrar to SitHost.com) typically takes some time to get processed. The process of executing a request consists of several steps. There is a chance that the steps may fail and the request does not get processed. Therefore, we deduct funds from your account only at the last step after the processing is complete, and the request has been successfully executed.
However, in order to prevent the possibility of your Reseller Account not having funds when the request is processed successfully, we lock the amount of funds required for a particular request, while it is being processed. As soon as the request processing steps are complete the, Locked funds are either deducted from your Reseller account or the lock is removed and the funds are credited back to your Reseller account depending on whether the execution of the particular requested action was successful or not.
There are also times when the process of executing a particular action of an Order takes several days. Some requests may take 5-10 days to get processed. We would in this case lock the funds required for a successful completion of the request, as soon as it is executed. Once the Order is executed Successfully, we would deduct these funds from your Reseller account. If the requested action fails, we would credit the Locked funds back to your Reseller account.
For instance, if there is a request being executed in your Reseller account which is likely to take 5-10 days, and your Reseller purchase price for the Order is USD 10, we would then lock USD 10 out of your available balance and begin processing this request. If the request is processed successfully, we would deduct this USD 10 from your Reseller balance. If the request fails, we would simply remove the lock on the USD 10.
As a Reseller, you can also check out the Locked Funds for your account, from the My Billing -> Locked Funds menu.
Please note that the concept of Locked Funds would always be applicable for you and your Sub-Resellers. In case of Customers, their funds would be locked only in case of Bulk Orders, such as Bulk Registration, Bulk Renewal (through Renewal Management) and Bulk Transfer.