FAQ

FairFlex Loop uses two complementary mechanisms to sustain the system financially.

A commission on the initial Loop
The original board owner holds all positions in the first Loop. When the complete first Loop has been sold or transferred, a commission is deducted from the total amount generated and retained by FairFlex Loop. If the first Loop is not completed, no commission is due. The value of this commission is variable regarding the situation and will be discussed with the board owner before to establish the reference value.

25% system contribution on position transfers
After the first Loop, when positions are transferred from one user to another, 25% of the transfer value is allocated to sustain and support the Loop. The remaining 75% goes to the holder of the position.

This contribution helps cover the costs and risks involved in keeping a physical board moving through successive Loops, including the Security Pool, natural wear, local partners, and the technology and operations required to manage usage, payments and position transfers.

The board’s condition is documented before a user takes possession of it, with photos and a classification of any existing damage or wear.

When the board is returned, its condition is checked against this record. If new damage is identified, the situation is documented and assessed by the local partner.

The cost of any necessary repairs is deducted from the user’s remaining deposit, and the rest is returned to the user.

If the damage also results in a loss of value to the board beyond the cost of repair, this loss in value is also taken into account, according to the Fairflex Loop rules.

Not all damage can be fully reflected by the cost of a repair.

For example, if water enters a surfboard and damages its internal structure, the board may be repaired and made usable again, but the damage may still affect its value.

In such a case, the situation is assessed and documented by the local partner. The cost of the necessary repair is taken into account, as well as any resulting loss in value to the board.

Any applicable amount is deducted from the user’s remaining deposit, according to the Fairflex Loop rules.

If you decide to keep the board, your deposit, equivalent to the reference value of the board, is kept as the purchase payment. The process ends.

A board may eventually stop progressing through the Loops because of natural wear, or because it has become too old or less attractive to users as the market changes.

Throughout the life of the board in the Loop, users pay a system contribution fee. From this contribution, a Security Pool is created.

If the board stops progressing while users still hold positions, the Security Pool can be used to compensate eligible position holders according to the FairFlex Loop rules.

Returning the board does not erase the positions you acquired through your use.

They remain associated with you.

When those positions are later transferred to another user, the amount paid for them is attributed to you, with 25% allocated as a system contribution to sustain and support the Loop.

No. The board must be ready for use, including fins and a leash, before it can be placed into the Fairflex Loop system. If your board needs to be equipped, our local partner can help arrange the necessary equipment at a local rate.

Yes.

The original owner can find and arrange the first access to the board directly through the Fairflex Loop system. This can provide a simple try-before-you-buy experience without an initial service fee for the user.

If the user decides not to buy the board and returns it, the board must then be returned through the local partner associated with the Fairflex Loop network in that area. Fees may apply at this stage to cover the local partner’s handling, inspection and care of the board.

This option is therefore available only where a Fairflex Loop local partner is already operating.

If the original owner would prefer and would be able to handle the board, they may be interested in becoming a Fairflex Loop local partner. 

No.

Once a user returns the board, the board must go through a Fairflex Loop local partner before being transferred to the next user. This ensures that the board can be checked, cared for and securely handed over before the next cycle begins.

However, a user can choose to complete the purchase of the board and become its physical owner. Once they become the owner, they can then find and arrange access for the next user directly, as a board owner.

The physical equipment is managed by a local Fairflex Loop partner.

Depending on the location, this can include storage, handover, return, condition checks, maintenance and repairs.

This gives the digital system a trusted physical presence where the equipment is actually being used.

No.

Surfboards are the starting point because they are a clear example of an asset that people often want to use without necessarily wanting to buy it immediately.

The same underlying model can potentially apply to many other types of physical equipment.