Market Loss Policy

Precious metals are commodity products with prices, bid/ask spreads, product premiums, wholesale spreads, and vendor buyback prices that fluctuate continuously. When Florida Gold Exchange confirms an order or locks a price, Florida Gold Exchange may purchase, reserve, allocate, hedge, or otherwise take market exposure for the Goods at the locked price.

A post-confirmation cancellation, failed payment, dishonored payment, refused delivery, chargeback, reversal, repudiation, or other failure to perform may cause Florida Gold Exchange to incur a real market loss. This Market Loss Policy provides the method used to calculate that loss.

When This Policy Applies

This policy applies only after an order has been confirmed or a price has been locked.

For a customer buying from Florida Gold Exchange, this policy may apply if the customer cancels after price lock or order confirmation, fails to timely pay, provides a payment that is dishonored, reversed, declined, charged back, canceled, or not finally accepted, refuses delivery, fails to complete pickup, or otherwise fails to perform.

Calculation Time

The market-loss calculation is made as of the earliest applicable time:

1. the time Buyer cancels or repudiates the order;
2. the payment deadline, if Buyer fails to timely pay;
3. the time Florida Gold Exchange receives notice that a payment has been dishonored, reversed, declined, charged back, canceled, or not finally accepted;
4. the time Buyer refuses delivery or fails to complete pickup;
5. the time Florida Gold Exchange cancels the transaction because of Buyer's failure to perform.

Retail Purchase Market Loss

For a retail purchase from Florida Gold Exchange, Market Loss is calculated per line item as:

If the result is zero or negative, no market-loss charge applies for that line item.

Locked Vendor Acquisition Cost means Florida Gold Exchange's cost, quoted cost, reserved cost, hedge cost, or other documented market-exposure cost for the same or equivalent goods at the time the order was confirmed or the price was locked. For bullion products, this may include the locked spot ask price, vendor sale premium, product premium, mint premium, wholesale premium, or other vendor charge applicable to the goods.

Vendor Liquidation Value means the amount Florida Gold Exchange could reasonably receive at the Calculation Time by selling, returning, liquidating, offsetting, or unwinding the same or equivalent goods or market exposure with the vendor, distributor, refiner, market maker, hedge counterparty, or other commercially reasonable source used for or related to the transaction. For bullion products, this may include the cancellation-time spot bid price plus or minus the vendor's applicable buyback premium or discount for the same or equivalent goods.

Same or Equivalent Goods

“Same or Equivalent Goods” means goods of the same metal, weight, purity, form, and commercially comparable product category.

For example, a 1 oz .9999 recognized-mint gold bar may be compared to another 1 oz .9999 recognized-mint gold bar if the originally ordered brand is unavailable, if the order allowed “our choice” fulfillment, or if the product category is otherwise commercially equivalent.

Documented Incidental Costs

Documented incidental costs may include commercially reasonable supplier cancellation charges, hedge closeout charges, shipping charges, insurance charges, payment reversal fees, bank fees, armored-courier cancellation charges, transportation charges, care and custody charges, resale charges, and other out-of-pocket costs caused by the cancellation, failed payment, refused delivery, or failure to perform.

No Double Recovery

Florida Gold Exchange may not recover the same loss twice. Any posted deposit, lock-deposit balance, payment, supplier credit, resale proceeds, hedge credit, vendor credit, or other recovery will be credited against the amount owed to the extent required to prevent double recovery.

Market Gains

If the calculation shows no deficit, no market-loss charge applies. A customer who cancels, fails to pay, refuses delivery, or otherwise fails to perform is not entitled to any market gain or favorable market movement after cancellation or breach.

Application of Charges

Any cancellation fee, market-loss charge, documented incidental cost, and other amount owed may be deducted from any refund, deposit, lock-deposit balance, trade-in credit, payment, or other amount otherwise payable to Buyer. If the charges exceed the amount held by Florida Gold Exchange, Buyer remains liable for the difference.

Market Loss Calculation Statement

If Florida Gold Exchange assesses a market-loss charge, Florida Gold Exchange will prepare and retain a Market Loss Calculation Statement showing, as applicable:

1. the transaction number;
2. the locked price and lock time;
3. the goods, quantity, metal, weight, purity, and product category;
4. the locked spot ask price;
5. the vendor sale premium or other locked acquisition component;
6. the Locked Vendor Acquisition Cost;
7. the Calculation Time;
8. the cancellation-time spot bid price;
9. the vendor buyback premium or discount;
10. the Vendor Liquidation Value;
11. any documented incidental costs;
12. any expenses saved or credits applied;
13. the final market-loss amount.

Florida Gold Exchange will retain commercially reasonable records supporting the calculation, such as vendor quotes, supplier invoices, pricing screenshots, buyback bids, hedge records, spot-price records, resale records, or other contemporaneous market evidence.

Exceptions

This policy does not apply to transactions canceled before price lock or order confirmation.

This policy does not apply when Florida Gold Exchange cancels because Florida Gold Exchange cannot fulfill the order for reasons within Florida Gold Exchange's control.

This policy does not apply when Florida Gold Exchange cancels for AML compliance, fraud prevention, sanctions compliance, elder-exploitation concerns, customer-protection concerns, or legal requirements, unless Buyer's independent breach, misrepresentation, false certification, failed payment, dishonored payment, chargeback, refusal of delivery, or other failure to perform caused a separate market loss.