Cancellation & Market Loss Policy
Overview
This page explains Safe Haven Metal’s (SHM) cancellation and market loss policy for orders placed with SHM whether they be online, in person, over the phone or otherwise.
Each order placed with Safe Haven Metal is a binding contract. SHM is obliged to perform on our end of the contract and necessarily results in relying that each customer will perform on the customer’s requirements of the contract. SHM’s reliance will incur damages if the customer does not perform on the customer’s end of the contract. This page explains the reasonable reliance and thus foreseeable damages that SHM will sustain once a customer enters into a contract with SHM.
Cancellation Processing fee. As an example, a $10 order takes substantially less effort to cancel
than does a $10,000,000 order. Because that effort will vary according to the order placed, those
damages will be difficult to ascertain and therefore to be fair to all customers, a percentage based
approach is employed.
Reliance Explained
Because you are our customer, the remainder of this page will state “you” in place of customer to make these events clearer and more personal to you.
You agree to allow SHM to charge your credit card for Market Loss and the Cancellation Processing fee.
When you submit your order you expect that manifestation to lock in the price that was presented to you at that time.
That order submission therefore needs its pricing to be locked in. To do so, SHM immediately enters the market to secure your precious metals at your confirmed price. Because precious metals prices move constantly, any cancellation creates market exposure to SHM.
There are two primary methods of purchasing precious metals from SHM on our website—credit card and some form of transfer of funds, e.g., bank wire, check, ACH, etc. Generally covered under Regulation CC.
Market Loss Triggered
Market losses are defined as the difference between the locked spot price of the metals at the time of the order and the spot price of the metals at the time we determine you have breached our payment terms. You will not be entitled to market gains, if any, unless your transaction is successfully completed in a timely fashion as required. Any such market gains otherwise, are due and owed to SHM.
In simple terms, precious metal prices go up and down. You will be subject to Market Losses in two situations should you breach your contractual obligations.
1.) If you are buying from SHM and the price of the precious metals goes down.
2.) If you are selling to SHM and the price of the precious metals goes up and you fail to ship to SHM.
Transfer of Funds Sales
To secure your pricing, a valid credit card is required at checkout. Safe Haven Metal will place a 15% authorization hold on your card so that SHM may proceed to lock in your order at the stated cost on your order. This hold is not a charge; it simply ensures funds are available to cover potential Market Loss Fees and or cancellation fees. The total of all such applicable fees will not exceed the 15% authorization amount, and the full hold may or may not be used depending on market movement.
Your card will not be charged if payment in good funds is received within the stated amount of time, typically 3 days from when you initiate the order.
The exception to the 3-day payment arises under sales using a physical check. If a payment made by physical check fails, is returned for insufficient funds, or the payment is otherwise not honored, the same Market Loss Fee and 4% cancellation fee will apply. These fees will be charged against the authorization hold on file.
Credit Card Sales
If you made your purchase using a credit card and notify SHM within the time allotted for cancelation (see below) then you will only be charged up to 15% of the order placed with SHM as explained herein.
Cancelation Process
If you wish to cancel an order, you must contact us by phone immediately, you have 24 hours to do so. All cancellations are subject to:
A Market Loss Fee, representing the difference between your locked-in price and the current market price at cancellation.
A cancellation fee of 4% of the order value.
Safe Haven Metal will only capture charges from your agreed to 15% authorization equal to the actual market loss plus the 4% cancellation fee.
Once a tracking number has been issued, the order is considered shipped and cannot be canceled under any circumstances. To do so would be illegal and thus cannot be honored.
You can read more about the laws that affect both you and SHM regarding precious metals sales on our purchase and sales agreement.
Safe Haven Metal also reserves the right to cancel any order if payment is not received within the required time frame. In such cases, the same fee structure applies. Any unused portion of the 15% authorization hold will be released once the account is settled.
If the credit card transaction is not honored on your end, or the full amount of Market Loss or Cancellation fees are not timely paid by you to SHM, then we reserve the right to send customer accounts to collections, including initiating formal legal action for breach of contract, to recover unpaid fees and monetary damages, including attorney fees. You consent to personal jurisdiction of the small claims court in the County of Ventura, California.
By placing an order, you acknowledge and agree to this Cancellation & Market Loss Policy and accept full responsibility for any fees resulting from a canceled, unpaid, or dishonored order.
Examples of Different Scenarios
Example: $10,000 Order Cancellation Scenario
Order Amount: $10,000
Credit Card Authorization Hold (15%): $1,500
Scenario:
The customer places a $10,000 order and locks in pricing. Safe Haven Metal enters the market to secure the metals and places a $1,500 authorization hold on the customer’s credit card. Later, the customer decides to cancel the order before a tracking number is issued.
Step 1 — Calculate Market Loss
Assume the market price moved unfavorably by 2% after the order was locked in.
2% of $10,000 = $200 Market Loss
Step 2 — Apply the 4% Cancellation Fee
The minimum cancellation charge is 4% of the order value, applied to every cancellation regardless of market movement.
4% of $10,000 = $400 Cancellation Fee
Step 3 — Total Fees Owed
Add the market loss and cancellation fee together:
$200 Market Loss
$400 Cancellation Fee
Total Fees = $600
Step 4 — How the Credit Card Hold Works
The $600 total fee is captured from the $1,500 authorization hold.
The remaining $900 from the authorization hold is released back to the customer.
If Market Loss Were Higher
If the market loss had been larger, for example 13%, here’s what would happen:
Market Loss (13% of $10,000) = $1,300
Cancellation Fee (4% of $10,000) = $400
Total Fees = $1,500
Since the 15% hold equals to $1,500, the total fees will not exceed $1,500.
If Market Loss Were Zero
Even if the market did not move or went up:
Market Loss = $0
Cancellation Fee = $400
Total Fees = $400 (captured from the $1,500 hold)
$1,100 released back to the customer
