Rules of allowed account debit balance
This document describes the terms of acquiring and maintaining an allowed account debit balance at Dropped.pl.
Using the debit balance
The site owner may grant the user a possibility to maintain a debit balance on their account, within limits set by the site owner. All payable operations on domains and other service purchases can be then performed on user's account without the need to maintain a positive cash balance, up to received debit limit.
In order to grant the user a possibility to use a debit balance, the user must submit domain names to the site owner as collateral for the debit. The site owner assesses the value of each domain individually and grants a portion of debit balance corresponding to this domain according to this assessment.
The site owner can reject accepting any domain as collateral or granting the user a debit balance.
The site owner can change the domain value assessment no more than by 25% per month and 50% per 6 months, providing a 14 day notice to the user.
Debit balance collateral
When a domain is used as a debit balance collateral, the following domain operations are blocked:
- Obtaining domain AuthInfo.
- Transfer of the domain to another account.
- Starting a domain auction.
- Starting an Escrow or rental transaction for the domain.
- Setting a Buy It Now price for the domain.
The site owner may also temporarily transfer the domain to their ownership when the domain is acting as collateral. The user accepts such ownership transfer when presenting the domain as collateral.
The user is obliged to renew the domain validity when they are acting as collateral. In case of domain expiration or removal from user account by other means, the allowed debit balance will be reduced by value assessment of this domain.
Fees for using debit balance
For opening and using the allowed debit balance, fees will be charged on user account according to price list.
The site owner is allowed to foreclose in the domains acting as collateral in any of the following cases:
- The negative balance on user's account remains lower than 125% of allowed debit balance for 10 consecutive days.
- Due to domain expiration or removal from user's account, the negative balance on user's account will fall below 125% of allowed debit balance.
After foreclosing on the domains, they will be sold on an auction. Funds obtained from selling domains will be credited to the user's account after deducting the fees for domain selling and domain foreclosure according to the price list. The site owner may decide freely which domains will be auctioned and when, up to obtaining a positive balance on user's account. The allowed debit balance on user's account will be decreased by the value assessment associated with foreclosed domains.
Resignation from debit balance
The user may decrease or eliminate their allowed debit balance by removing chosen domains from collateral. Allowed debit balance will be reduced by the value assessment associated with the domains. Reducing allowed debit balance is possible only up to the current negative balance on the account.