Add Grace Period (AGP)
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The Add Grace Period (AGP) is a 5-day window defined in ICANN's [[registry-agreement|Registry Agreement]] during which a newly registered domain may be deleted by the [[registrar]] for a full credit of the registration fee from the [[registry-operator|registry]]. AGP was originally designed to allow registrars to reverse billing errors or customer cancellations without financial loss. However, the policy was systematically exploited through [[domain-tasting|domain tasting]] — registrars would register millions of domains, monetize them via parked ads for 5 days, then delete them for a full refund. In 2008, ICANN capped AGP credits to 10% of a registrar's total monthly registrations or 50 domains (whichever is greater), effectively ending large-scale tasting.
Example
A registrar that accidentally registers the wrong domain on a customer's behalf can delete it within the 5-day AGP and receive a full credit — the customer is refunded without the registrar absorbing a net loss.