Vendor/Market Question - are orders hedged (If the BTC price drops, who deals with the USD loss)?

I was wondering if the darknet markets are hedged for vendors? What I mean by that is; if you as a vendor sell, say 1 oz of Cocaine for 350 USD (1 BTC) and you don't require FE, and the price of Bitcoin falls sharply, do you get 1 BTC when the customer receives their order and finalizes, or do you get 350 USD of BTC?

I remember the original Silk Road used to allow hedging, but the new markets (Agora) are unclear on this. I also read that at least one vendor (blueviking) temporarily closed up shop in the recent price drop.

If vendors are carrying the financial risk, would any be prepared to share strategies to avoid this? And/or which markets offer hedging? It seems even a small drop for a popular vendor - unhedged and in escrow - could be very very expensive...


Comments


[2 Points] iamjustsomejerk:

I don't know of any markets that allow for hedging. If you, as a vendor, sell something for 1 BTC, you will walk away from the deal with 1 BTC, not $350 worth of BTC.

Edit: Also... Where the hell are you buying ounces of coke for $350?


[2 Points] toss-1:

I know SR1 had the vendor option of this and it was a 4% surcharge to use the service. Larger vendors like SuperTrips that would do 30-50 orders a day opted out and would often cancel all orders from a day deemed unprofitable due to btc volitility


[1 Points] None:

Or profitable. You do know btc prices also go up right?