diff --git a/contracts/contracts/coordination/Coordinator.sol b/contracts/contracts/coordination/Coordinator.sol
index b7b423db..525dce9a 100644
--- a/contracts/contracts/coordination/Coordinator.sol
+++ b/contracts/contracts/coordination/Coordinator.sol
@@ -70,6 +70,8 @@ contract Coordinator is AccessControlDefaultAdminRules {
     bool public isInitiationPublic;
     IFeeModel feeModel;  // TODO: Consider making feeModel specific to each ritual
     IReimbursementPool reimbursementPool;
+    uint256 public totalPendingFees;
+    mapping(uint256 => uint256) public pendingFees;
 
     constructor(
         IAccessControlApplication _stakes,
@@ -162,8 +164,6 @@ contract Coordinator is AccessControlDefaultAdminRules {
         require(2 <= length && length <= maxDkgSize, "Invalid number of nodes");
         require(duration > 0, "Invalid ritual duration");  // TODO: We probably want to restrict it more
 
-        processRitualPayment(providers, duration);
-
         uint32 id = uint32(rituals.length);
         Ritual storage ritual = rituals.push();
         ritual.initiator = msg.sender;
@@ -186,6 +186,8 @@ contract Coordinator is AccessControlDefaultAdminRules {
             newParticipant.provider = current;
             previous = current;
         }
+
+        processRitualPayment(id, providers, duration);
         
         // TODO: Include cohort fingerprint in StartRitual event?
         emit StartRitual(id, ritual.authority, providers);
@@ -286,6 +288,7 @@ contract Coordinator is AccessControlDefaultAdminRules {
         if(!ritual.aggregationMismatch){
             ritual.totalAggregations++;
             if (ritual.totalAggregations == ritual.dkgSize){
+                processPendingFee(ritualId);
                 emit EndRitual({
                     ritualId: ritualId,
                     successful: true
@@ -293,6 +296,7 @@ contract Coordinator is AccessControlDefaultAdminRules {
                 // TODO: Consider including public key in event
             }
         }
+
         processReimbursement(initialGasLeft);
     }
 
@@ -318,14 +322,45 @@ contract Coordinator is AccessControlDefaultAdminRules {
         return getParticipantFromProvider(rituals[ritualID], provider);
     }
 
-    function processRitualPayment(address[] calldata providers, uint32 duration) internal {
+    function processRitualPayment(uint256 ritualID, address[] calldata providers, uint32 duration) internal {
         uint256 ritualCost = feeModel.getRitualInitiationCost(providers, duration);
         if (ritualCost > 0){
+            totalPendingFees += ritualCost;
+            assert(pendingFees[ritualID] == 0);  // TODO: This is an invariant, not sure if actually needed
+            pendingFees[ritualID] += ritualCost;
             IERC20 currency = IERC20(feeModel.currency());
             currency.transferFrom(msg.sender, address(this), ritualCost);
             // TODO: Define methods to manage these funds
         }
     }
+
+    function processPendingFee(uint256 ritualID) public {
+        Ritual storage ritual = rituals[ritualID];
+        RitualState state = getRitualState(ritual);
+        require(
+            state == RitualState.TIMEOUT ||
+            state == RitualState.INVALID ||
+            state == RitualState.FINALIZED,
+            "Ritual is not ended"
+        );
+        uint256 pending = pendingFees[ritualID];
+        require(pending > 0, "No pending fees for this ritual");
+
+        // Finalize fees for this ritual
+        totalPendingFees -= pending;
+        delete pendingFees[ritualID];
+        // Transfer fees back to initiator if failed
+        if(state == RitualState.TIMEOUT || state == RitualState.INVALID){
+            // Amount to refund depends on how much work nodes did for the ritual.
+            // TODO: Validate if this is enough to remove griefing attacks
+            uint256 executedTransactions = ritual.totalTranscripts + ritual.totalAggregations;
+            uint256 expectedTransactions = 2 * ritual.dkgSize;
+            uint256 consumedFee = pending * executedTransactions / expectedTransactions;
+            uint256 refundableFee = pending - consumedFee;
+            IERC20 currency = IERC20(feeModel.currency());
+            currency.transferFrom(address(this), ritual.initiator, refundableFee);
+        }
+    }
     
     function processReimbursement(uint256 initialGasLeft) internal {
         if(address(reimbursementPool) != address(0)){ // TODO: Consider defining a method