Silk Road forums
Discussion => Silk Road discussion => Topic started by: tape dispenser on February 28, 2013, 08:09 am
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Is the refund rate calculated by using the quantity of BTC spent/refunded or the actual fiat currency value (at the time of the purchase or refund) of the bitcoins spend/refunded? What I'm asking is does the refund rate take into account the varying price of bitcoin over time? (I know it also weighs more recent orders more heavily) Could someone post here the exact formula the system uses to calculate the refund rate?
I've got a dilemma, I have a reship offer but I'm not confident it'll go through (if the first one failed why would the second work?) The refund offered at the time of order was 100% so I could get that but since the value of BTC has almost doubled since I ordered I'm not sure if that will result in me having a refund rate that is through the roof (around 180%) or not?
Can anyone clarify/answer this?
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Bump - it'd be really helpful for a lot of people to know exactly how refund rate is calculated - both vendors & buyers, so they can interpret it correctly.
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its an agreed upon rate that the vendor can specify as part of his policy or a staff member can enforce if no one can agree. Fluctuations in btc are always pegged to the dollar so you will always be working off the same dollar amount, though this cant protect you against future fluctations (if you have n coins at stake and the btc price went up by 2x since the sale you'd get half as many coins, but if it went down by 2x thereafter to its original price you'd end up with half as much money).
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Masterblaster I assume that tape dispenser is asking for a sale that isn't hedged, if you are asking about a hedge sale then Masterblaster is right. I honestly don't know for non hedged sales but I'm curious about the answer too, if you look on the SR wiki it might be mentioned there.
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Not hedged: You get back the same number of bitcoins you paid. If the value of bitcoins has changed since your purchase then the USD equivalent of the returned bitcoins will have changed.
Hedged: There is a 4% fee on hedged orders. You will receive back 96% of the USD value you made your purchase for.
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OP: If your vendor did not hedge your order then it would be best for you to take the refund. The bitcoins you gave them can now buy twice as much as when you spent them initially.
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Not hedged: You get back the same number of bitcoins you paid. If the value of bitcoins has changed since your purchase then the USD equivalent of the returned bitcoins will have changed.
Hedged: There is a 4% fee on hedged orders. You will receive back 96% of the USD value you made your purchase for.
While this is true I don't think it's what the OP is asking. Or rater it wasn't the question I had. We/I want to know if a buyer for example gets a 100% refund on a unhedged order how will this affect their refund rate that is displayed to vendors. Will the refund rate take the refund as the dollar value the listing was made for or the amount the bitcoins are now worth instead.
Actually looking back at it unhedged transactions display as BTC in escrow while the transaction is happening so I imagine it takes whatever the BTC value when the refund is issued for the refund rate. But who knows