Cup Trust, which promises members a 12% daily return over 12 days, provides no public information on its website about its ownership or management. The domain cuptrust.com was registered on March 27, 2012, with private details masking who operates the company. Transparency about company leadership is a common expectation for investment programs.
Members of Cup Trust can only market memberships to the company itself. The company states it sells advertising at a retail level, but this option remains unavailable to members. Each investment a Cup Trust member makes includes advertising credits. These credits can then purchase advertising on an in-house network featured on the Cup Trust website.
The company guarantees members a 12% return on investments over a 12-day period. Investments are made in $12 allotments. Members must reinvest 30% of their returns back into the company.
Cup Trust also offers recruitment commissions on new investments. When a member recruits someone, that person forms their level 1. The recruiter earns 10% on any investments the level 1 member makes. If a level 1 member recruits a new individual, that person becomes the original recruiter's level 2, earning them 2% on any investments made.
Membership to Cup Trust is free. However, investments must be made with the company to earn commissions. Members who do not invest can earn referral commissions by convincing their recruits to invest. But they themselves need to invest these commissions if they wish to cash them out.
The advertising sold by Cup Trust holds no real retail value. The only visitors to the website are those interested in the income opportunity. This suggests the company's main revenue source comes from new member investments. Returns on supposed "advertising purchases" are effectively investment payouts.
A statistics box on the Cup Trust website confirms this. The box lists only "investments made by members," with no mention of sales. Furthermore, the Cup Trust refund policy states, "You are purchasing the text and banner advertising. The program is in addition to the advertising. ALL SALES ARE FINAL. NO REFUNDS." A legitimate advertising purchase would typically allow for a refund if credits remained unused. Cup Trust uses new member funds to pay off existing returns owed on investments. This structure indicates Cup Trust operates as a Ponzi scheme, which will collapse once new investments cease.