How Loop'D values an item: Fair Market Value (FMV) methodology
Our algorithmic Fair Market Value pricing engine combines verified on-chain secondary trades, global physical auction records, and market depth comps.
The Deterministic FMV Calculation Engine
Every asset on Loop'D features an algorithmic Fair Market Value (FMV) displayed prominently in tabular format. FMV is not a subjective appraisal; it is a live econometric index generated from multi-source price signals.
Primary Data Inputs: 1) Completed secondary transactions on the Loop'D Ledger; 2) Cleared auction house hammer results from Sotheby's, Christie's, Phillips, Heritage, and PSA/Goldin; 3) Verified private dealer sales recorded by certified grading associations.
Outlier Trimming: Our pricing algorithm automatically excludes distressed fire-sales, wash-trading attempts, and unverified private claims. Recent transactions receive higher exponential weighting, adjusted for category volatility and overall market momentum.
How FMV Impacts Box Buybacks and Lending
FMV serves as the foundational benchmark for mystery box instant buybacks (guaranteed at 88% to 92% of FMV) and institutional asset borrowing limits.
Was this article helpful?
Let our documentation team know how we did.
Related Articles & Documentation
Membership tiers, identity requirements, and limits
Understand the four Loop'D membership tiers (Collector, Verified, Accredited, Institutional), verification requirements, and feature unlocks.
How trades settle in 2.4 seconds on the Loop'D Ledger
The technical mechanics of atomic token transfers, identity eligibility verification, and instant ownership transfer without escrow delays.
How provably fair draws work: seed cryptography and verification
The mathematical proof behind Loop'D mystery boxes: pre-committed server seed SHA-256 hashes, client-side entropy, and independent draw verification.
