Protection amount and coverage
How the cap and coverage rate work
The financial structure of pair.deal comes from two choices: the protection amount cap and the coverage percentage applied to each accepted or determined eligible amount.
Protection amount
The cap on total reimbursement
The protection amount is the financial ceiling for reimbursement under the arrangement. Every accepted or determined payment sits inside that overall cap.
Tier options
The cap is selected from a fixed set of tiers.
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Tier options
The cap is selected from a fixed set of tiers.
- Light sets the cap at €600.
- Regular sets the cap at €1,200.
- Max sets the cap at €2,400.
Example calculation
If the agreed Protection Amount is €1,200 (Regular) and an accepted claim evaluates to €1,500, the seller's maximum liability is strictly truncated at €1,200.
How the cap works over multiple claims
The cap applies across the life of the arrangement rather than only to a single receipt.
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How the cap works over multiple claims
The cap applies across the life of the arrangement rather than only to a single receipt.
- Several claims may be made if they fit the agreement.
- The total recoverable amount cannot rise above the protection amount.
- The cap still applies after the coverage percentage has been taken into account.
Example calculation
If a buyer makes two claims each valid for €400 under a €600 Cap, the first €400 is paid fully. The second €400 is paid out at €200, exhausting the €600 total cap. The buyer absorbs the remaining €200.
Coverage percentage
The rate applied to each eligible amount
The coverage percentage determines how much of each accepted or determined eligible amount the seller must reimburse, always subject to the cap.
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How the cap and rate affect buyer-side value.
Proceed if the selected cap and rate suit the sale.
Available rates
The agreement uses a fixed percentage rather than open-ended reimbursement.
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Available rates
The agreement uses a fixed percentage rather than open-ended reimbursement.
- Partial cover applies at 40%.
- Full cover applies at 70%.
- The selected rate applies across accepted or determined claims.
Example calculation
If an eligible repair costs €1,000, 40% cover returns €400 to the buyer, while 70% cover returns €700 to the buyer (assuming both fall safely under the selected tier cap).
Why the rate matters
The buyer and seller should price the arrangement with the rate in mind, not just the cap.
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Why the rate matters
The buyer and seller should price the arrangement with the rate in mind, not just the cap.
- A larger cap with a lower rate may still leave more loss with the buyer.
- A higher rate may give stronger protection but can make the arrangement feel heavier for the seller.
- The fee and the value of the arrangement should be judged together.
Example calculation
If a €3,000 repair occurs: A 'Max €2,400 Cap' with a '40% Rate' pays out €1,200. A 'Regular €1,200 Cap' with a '70% Rate' pays out €1,200. The buyer carries the same €1,800 burden despite vastly different caps, due to how the math resolves.