The “Add Grace Period” (AGP) is a 5-day grace period following domain registration where the operation may be reversed and a credit may be issued to a Registrar. AGP was intended to allow for the no-cost cancellation of domain name registrations resulting from typos and other errors by Registrars and registrants as well as some types of fraudulent registrations.
When a domain name is registered through a Registrar, that Registrar may delete the domain name at any time during the first five calendar days of the registration or within the first five calendar days of submitting an application for a .aero name (the Add Grace Period or AGP), and receive a full credit for the registration fee from the Operator.
However, on 17 December 2008, ICANN announced the implementation plan for the new Add Grace Period (AGP) Limits Policy adopted by the ICANN Board on 26 June 2008. The Add Grace Period Limits Policy allows a registrar’s account to be debited each month for all AGP deletions that exceed the greater of either:
* 50 domain names, or
* 10% of net new adds for the previous month
As a result, registrars will no longer be entitled to a refund of the registration fee by Operators for new registrations of domain names deleted during the AGP that exceed the 10% or 50 threshold maximum number of AGP deletes in a given month, unless an exemption has been granted by SITA. For example, if a Registrar had in a month 1,000 net new registrations in the .com Registry, for US$30,000 (based on a price of US$30 per domain name registration), and had 250 AGP deletes, the Registrar would be entitled to a refund of US$3000 for 100 AGP deletes (10% of 1,000 net new registrations at US$30 per domain name registration). The Registrar would not be entitled to an additional refund of US$4500 for the 150 “excess” deletes made during that month.
* Net new registrations – 1000
* Price for net new registrations – $30,000 (30*1000)
* Number of AGP deletes – 250
* 10% of net new registrations (allowed deletes within AGP for a full refund) – 100
* Excessive deletes = 150 (250-100)
* Allowed refund under the new AGP policy – $3000 (100*30)
Prior to this Policy, the Registrar would have received a full refund for all the names deleted during the AGP.
The Add Grace Period Limits Policy went into effect 00:00 UTC on 01 May 2009.