Advisor Pricing Errors, Shortages & Financial Adjustments
This page summarizes the section of the Strato Independent Contractor Agreement (ICA) that governs how Strato handles advisor pricing errors, unauthorized discounts or markups, missed deadlines, and other shortages resulting in a loss to Strato or a client.
Scope
These provisions apply to all active advisors of Variety Strategic Travel Solutions LLC. Strato Curated Collective ("Strato") is the operating brand of Variety Strategic Travel Solutions LLC. They govern financial responsibility for shortages arising out of an advisor's work, including but not limited to: pricing errors, unauthorized discounts, unauthorized markups, unauthorized credits, missed payment deadlines, incorrect recipients, and supplier-imposed penalties caused by advisor error.
Notice, response & determination
- Strato issues a written preliminary assessment identifying the alleged shortage, category, conduct date, and evidence.
- The advisor has a stated response period (typically 14 days) to acknowledge and submit a written response, including any records or context.
- A financial-admin reviewer, who is not the person who drafted the preliminary assessment, issues the final determination. Separation of duties is enforced by system controls.
- Final determinations are recorded and immutable.
Offsets
Once a final determination establishes a shortage, Strato may offset the amount against (a) the advisor's current commission earnings, (b) the advisor's reserve account, or (c) future commission earnings, in that order of preference, subject to applicable law. Amounts that cannot be recovered may be written off. All offsets are itemized and shared with the advisor.
Audit trail
Every action in this workflow — draft, notice, acknowledgment, response, recommendation, finalization, and offset — is logged with actor, timestamp, and payload for audit purposes.
Amendments
Material changes to this section are published as a new version of the ICA. Active advisors are required to review and re-sign the current version by the stated deadline. Advisors with an overdue signature requirement are restricted from accepting new work until they sign.
Errors & Omissions coverage
Strato provides agency-level Errors & Omissions (E&O) coverage for eligible, activated advisors performing authorized Strato work, subject to the policy terms, eligibility requirements, approved systems/suppliers, training, documentation, and other coverage conditions. Applying, signing an agreement, or being in training does not by itself create coverage. Strato may require separate or supplemental coverage for certain business structures, activities, limits, or higher-exposure work.
This summary is provided for convenience and does not replace the operative language of the ICA.