diff --git a/app/models/domain.rb b/app/models/domain.rb
index 469847203..1b0620262 100644
--- a/app/models/domain.rb
+++ b/app/models/domain.rb
@@ -152,6 +152,12 @@ class Domain < ActiveRecord::Base
         x.domain_statuses.create(value: DomainStatus::EXPIRED) if x.expirable?
       end
     end
+
+    def start_redemption_grace_period
+      Domain.where('outzone_at <= ?', Time.zone.now).each do |x|
+        x.domain_statuses.create(value: DomainStatus::SERVER_HOLD) if x.server_holdable?
+      end
+    end
   end
 
   def name=(value)
@@ -189,6 +195,13 @@ class Domain < ActiveRecord::Base
     domain_statuses.where(value: DomainStatus::EXPIRED).empty?
   end
 
+  def server_holdable?
+    return false if outzone_at > Time.zone.now
+    return false if domain_statuses.where(value: DomainStatus::SERVER_HOLD).any?
+    return false if domain_statuses.where(value: DomainStatus::SERVER_MANUAL_INZONE).any?
+    true
+  end
+
   def pending_update?
     (domain_statuses.pluck(:value) & %W(
       #{DomainStatus::PENDING_UPDATE}
@@ -329,6 +342,8 @@ class Domain < ActiveRecord::Base
     self.registered_at = Time.zone.now
     self.valid_from = Time.zone.now.to_date
     self.valid_to = valid_from + self.class.convert_period_to_time(period, period_unit)
+    self.outzone_at = self.valid_to + Setting.expire_warning_period.days
+    self.delete_at = self.outzone_at + Setting.redemption_grace_period.days
   end
 
   def manage_automatic_statuses
diff --git a/config/initializers/initial_settings.rb b/config/initializers/initial_settings.rb
index 018e4be22..824cf0fcc 100644
--- a/config/initializers/initial_settings.rb
+++ b/config/initializers/initial_settings.rb
@@ -32,6 +32,8 @@ if con.present? && con.table_exists?('settings')
   Setting.save_default(:invoice_number_max, '149999')
   Setting.save_default(:days_to_keep_overdue_invoices_active, 30)
   Setting.save_default(:days_to_renew_domain_before_expire, 90)
+  Setting.save_default(:expire_warning_period, 15)
+  Setting.save_default(:redemption_grace_period, 30)
 end
 
 # dev only setting
diff --git a/spec/models/domain_spec.rb b/spec/models/domain_spec.rb
index 6bf183f9f..e8bb34742 100644
--- a/spec/models/domain_spec.rb
+++ b/spec/models/domain_spec.rb
@@ -55,6 +55,13 @@ describe Domain do
       @domain.errors.full_messages.should match_array([])
     end
 
+    it 'should have correct validity dates' do
+      valid_to = Time.zone.now.beginning_of_day + 1.year
+      @domain.valid_to.should == valid_to
+      @domain.outzone_at.should == valid_to + Setting.expire_warning_period.days
+      @domain.delete_at.should == valid_to + Setting.expire_warning_period.days + Setting.redemption_grace_period.days
+    end
+
     it 'should validate uniqueness of tech contacts' do
       same_contact = Fabricate(:contact, code: 'same_contact')
       domain = Fabricate(:domain)
@@ -96,6 +103,17 @@ describe Domain do
       @domain.domain_statuses.where(value: DomainStatus::EXPIRED).count.should == 1
     end
 
+    it 'should start redemption grace period' do
+      Domain.start_redemption_grace_period
+      @domain.domain_statuses.where(value: DomainStatus::SERVER_HOLD).count.should == 0
+
+      @domain.outzone_at = Time.zone.now
+      @domain.save
+
+      Domain.start_redemption_grace_period
+      @domain.domain_statuses.where(value: DomainStatus::SERVER_HOLD).count.should == 1
+    end
+
     context 'about registrant update confirm' do
       before :all do
         @domain.registrant_verification_token = 123