Silk Road forums
Discussion => Newbie discussion => Topic started by: jcs27 on February 01, 2013, 05:23 am
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I will not yet name the vendor or what I tried to order, but here is the issue. I placed an order 3days ago for a price of 18.51 and the seller did not process the order, it just sat there for 3days, then it was cancelled. But I only received a refund of 16.49. Why is this? I know bitcoin prices fluctuate, but I thought once you placed an order the original price and amount is locked in so people don't get screwed. I just got screwed because the vendor just let the order sit then decided to cancel w/o reason and I lose money for this. That is not fair. Does anyone know what is the policy on this? Any advice would be appreciated.
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It's because the vendor has things set for escrow hedging .... it costs a fee, so the fee is why you didn't receive 100% back.
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Escrow hedge
Unfortunately, the Bitcoin exchange rate isn't as stable as we would all like it to be, and can fluctuate wildly in a matter of hours, let alone the days or weeks it takes for a package to arrive. Because of this, there is a real danger that the Bitcoins being held in your escrow account will lose value by the time your vendor gets paid or you are refunded. So, we've given the option to vendors to hedge the future payments they are expecting from escrow such that the dollar value of the payment doesn't change as the Bitcoin exchange rate changes.
For example, a seller is hedging the escrow for a 10 btc order you place with them, and the dollar value of your order when you purchase it is $100. Now, let's say your order never arrives and your vendor agrees to a full refund, but those 10 btc are no longer worth $100, they're worth $50! Because your vendor hedged the escrow, you won't get a refund of 10 btc, you'll get 20 btc equaling the original value of $100. Of course, the opposite is also true. If Bitcoins appreciate in value while your order is in escrow, your refund will be fewer Bitcoins, but still equaling the original dollar value.
When checking out, you will see which orders will be hedged and which won't. After the order is placed, your escrow balance will reflect the dollar value of your hedged orders and the Bitcoin value of your unhedged orders. All hedged orders are hedged as soon as the order is placed. So when getting a refund for hedged items, don't be surprised if the number of Bitcoins you get back is not the same as the amount you paid.
If you need the most up-to-date USD/BTC exchange rate, we recommend mtgoxlive.com.
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Avendor should be made to send out order within the shortest amount of time possible. If a vendor just lets an order sit and then decide to cancel w'/o reason the buyer should not have to lose money for it. So there is no way around this?
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only buy from vendors taht don't hedge their escrow..
it clearly states it when you add the item to the shopping chart, it says it on the right side of the screen right next to the total, last item on the far right.
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hahahaah.. people want anonymous drugs to their mailbox free of charge... wow deal with it!!!