SYSTEM AND METHOD FOR RISK ACCEPTANCE IN THE PROVISIONING OF PRICE PROTECTION PRODUCTS
First Claim
1. A method comprising:
- establishing an agreement for a commodity, wherein the agreement has a first set of terms and an associated first financial risk;
analyzing market conditions for the commodity to determine a second financial risk associated with the commodity for the provider of the price protection product;
comparing the terms of the agreement to the analysis of the market conditions; and
generating a price protection product having a second set of terms based on the first set of terms and the comparison of the first set of terms to the analysis of the market conditions, wherein the second set of terms has an associated third financial risk.
1 Assignment
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Accused Products
Abstract
A provider of price protection products may enter into an agreement with a set of terms and associated financial risk with a financial institution such that the financial institution provides indemnification against the financial risk associated with selling a commodity. The provider may analyze data, the terms of the agreement and perform scenario analyses to determine its financial risk and may lay off or take on more risk. The provider may offer price protection products to consumers via computing devices and retail locations. The products may have the same terms as the agreement between the provider and the financial institution, or may have different terms and conditions to either take on or lay off risk.
94 Citations
23 Claims
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1. A method comprising:
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establishing an agreement for a commodity, wherein the agreement has a first set of terms and an associated first financial risk; analyzing market conditions for the commodity to determine a second financial risk associated with the commodity for the provider of the price protection product; comparing the terms of the agreement to the analysis of the market conditions; and generating a price protection product having a second set of terms based on the first set of terms and the comparison of the first set of terms to the analysis of the market conditions, wherein the second set of terms has an associated third financial risk. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11)
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12. A system for managing risk in the provisioning of price protection products, comprising:
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an insurance provider for establishing an agreement to accept a first financial risk associated with the cost of a commodity, wherein the insurance provider accepts the first financial risk according to a first set of terms in exchange for a first price; a price protection operable to; obtain insurance associated with the commodity from the insurance provider in exchange for the first price; analyze market conditions for the commodity to determine a second financial risk associated with the commodity for the provider of the price protection product; compare the terms of the agreement to the analysis of the market conditions; and generate a price protection product having a second set of terms based on the first set of terms and the comparison of the first set of terms to the analysis of the market conditions, wherein the second set of terms has an associated third financial risk. - View Dependent Claims (13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23)
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Specification