The bond margin gauge enables buyers to know when the coverage limit of a given bonded seller’s performance bond / surety bond has been or will be exceeded. Here’s an excerpt from the patent specification:
Bond Margin Gauge
FIG. 18 presents an example of the Bond Margin Gauge in action. On Day 1, JoeSeller (1711 in FIG. 17B) has three running auctions, two of which have met the reserve. The bonded seller’s coverage limit is $5000.00, and the sum of the three high bids is $310.00. The Bond Margin Gauge therefore reads $4690.00. On Day 2, two of the auctions have closed, one of which did not meet the reserve, auction 3. Since auction 3 has closed without a winner, the high bid in that auction no longer counts against the seller’s bond margin. The sum total of the winning bid in auction 1, which has closed, and auction 2, which is still open, is $300, and the bonded seller’s currently available margin as measured by the Bond Margin Gauge is therefore $4700. By day 4, auction 2 has also closed with a high bid of $150.00, and the Bond Margin Gauge reads $4650.00.
On Day 93, JoeSeller (1711 in FIG. 17B) lists a new auction which currently has no bids. The risk period for auction 1 has ended, and therefore the winning bid in that auction no longer counts against the seller’s bond margin. However, the risk period for auction 2 has not yet ended, and therefore the seller’s bond margin equals $4850. By day 95, the risk period for auction 2 has ended, and auction 4 has a high bid of $500, resulting in a bond margin of $4500 for the given bonded seller.
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