> For the complete documentation index, see [llms.txt](https://open-carbon-protocol.gitbook.io/ocp-handbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://open-carbon-protocol.gitbook.io/ocp-handbook/registry/credit-cancellation.md). # Credit Cancellation The permanent removal of a **carbon credit** from the **OCP Registry** without claiming the associated benefit of the reduction/removal for any voluntary or mandatory target. All cancellation are tracked on the OCP Registry. \ \ May occur for a two reasons: 1. Compensating for **reversal events** 2. Compensating for **excess issuance /** **over crediting.** ### Reversal Events {% hint style="warning" %} For more information, see '[Mitigating Risk: Insurance and Buffer Pool](/ocp-handbook/projects/mitigating-reversal-risk-insurance-and-buffer-pool.md)' {% endhint %} * All Projects must conduct a permanence & reversal risk assessment, as well as create a risk mitigation strategy, aligned with the '[Permanence](https://open-carbon-protocol.gitbook.io/ocp-methodology-requirements/sections/8.-permanence)' section of the relevant methodology. * Project Developers must monitor for reversals as part of their monitoring plan, and are required to notify the program as soon as possible and no later than 5 working days after becoming aware of the reversal event, as per [OCP Terms of Service](https://pilot.ocp.earth/terms-and-conditions). Any single reversal event or cumulative series of reversal events amounting to 5% or more of credited outcomes shall automatically trigger a mitigation response. * Project Developers have two possible mitigation responses, if allowed by the relevant methodology: * **Buffer Pool Contribution and Distribution**: During each credit issuance, a methodology-dependent percentage of credits is contributed to the [OCP Buffer Pool](#ocp-buffer-pool-policy). * **Project Insurance**: During project proposal, project developers must take out an insurance policy with a registered carbon insurance company (e.g. Kita, Oka). In a reversal event, the insurance company will work with the OCP, buyers and other stakeholders to compensate. ### Excess Issuance / Over Crediting * In the case of excess issuance / over crediting on an OCP project (including from smart contract, registry or data integrity issues), credits will be permanently cancelled and the OCP will: * If the excess issuance / over crediting is identified before credits are first transferred, the credits will be cancelled from the Project Developer's inventory and no further action will be taken. * If the excess issuance / over crediting is identified after credits have been transferred or retired, the credit owners can choose either: * Replacement credits (at no extra cost) for all credit owners from relevant other projects or issuances (with approval from credit owners) *or* * A full monetary refund (based on the original price of sale, with proof of purchase). Any revenue from over-issued credits will be refunded to the relevant party. * **Replacement credits for excess issuance /** **over crediting will not come out of the** [**OCP Buffer Pool**](/ocp-handbook/projects/mitigating-reversal-risk-insurance-and-buffer-pool.md#ocp-buffer-pool-policy)**, which is reserved for reversal events only.** * With prior approval from the Governing Board, replacement credits may be temporarily used from the buffer pool to ensure the platform is operating properly. A 'refilling' plan is required before this action can occur, which is tracked by the governing Board until the buffer pool has been fully replaced by OCP-bought credits. * In the case of excess issuance of credits due to an error with the OCP platform, the OCP will work with the project developer to cancel and/or issue new credits based on the correct calculation. Any sold credits will be replaced as per the mechanism above. * The OCP is the responsible entity for managing the excess issuance / over crediting, with final decision making and sign-off by the OCP Advisory Board. * All relevant parties will be notified within 5 working days via email and will have the opportunity to set up meetings with the OCP team to discuss next steps. All cancellations will also be publicly communicated via the [OCP Registry](https://pilot.ocp.earth/registry) (Activity > Cancellations) and on the relevant project pages. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://open-carbon-protocol.gitbook.io/ocp-handbook/registry/credit-cancellation.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.