Previous neutron-diffraction and direct magnetic measurements have established that the stoichiometric alloy Pt3Fe exists in a chemically ordered state which has a simple antiferromagnetic structure. Small additions of excess iron lead first to a simple antiferromagnetic state, with the appearance of a second coexisting antiferromagnetic state at lower temperatures but with a single undistorted, cubic unit cell; and second to an incipient ferromagnetic state probably associated with clustering of the excess iron atoms. A model is developed here to explain the observed magnetic susceptibility and magnetization of the incipient ferromagnetic state. Single-domain ferromagnetic clusters are assumed to be acted upon by molecular fields associated with two sublattices in the antiferromagnetic matrix, and ferromagnetically with each other. The results of the calculation agree well with experiments. © 1968 The American Institute of Physics.