The Recoup Threshold* is the amount that you set for a specific track that must be paid out to you before any splits on that song begin to take effect.
This feature of our Auto Split service allows you to ensure that you can "Recoup" any production or marketing expenses before paying out to any of your collaborators.
For example:
If you decide to split 25% of your song with Artist X, but you set the Recoup Threshold to $500, then Artist X will not receive any earnings for that track until your account has been paid $500. Over time, and as soon as your song has earned $500, the Recoup Threshold will have been met and Artist X will begin being paid their 25% going forward.
*The Recoup Threshold only applies to the Owner of the account and can only be utilized for content submitted for distribution after January 1st, 2023.