Highest Unique Bid Auction Mechanism

Q1: What is a Highest Unique Bid Auction? A Unique Bid Auction is a type of auction where the winner is the participant who places the highest and unique bid. To win, your bid must be uniquely higher than all other bids and must be the only bid at that amount.

Q2: How does the Highest Unique Bid Auction work on AuctionX? In the AuctionX Highest Unique Bid Auction, bidders will require PLAYs to participate in the auction process. Each bid will consume 1 or more PLAYs as defined in the X multiplier – shown the bid screen.

To participate a bidder needs to bid a number – which he feels will be unique (nobody else would have bid that same number) and yet higher than all other bids. As a bid is placed – the bid panel shows the bid is highest and unique.

Q3: When is a winner declared in the highest unique auction mechanism ? Each auction is pre-configured to accept a fixed number of bids. This configuration is done by the auctioneer (the auction admin). The winner is announced only after these pre-configured number of bids have been placed – collectively by all the bidders. The bidders cannot ascertain the number of bids that will need to be placed before a winner is announced, but the bidders can see a percentage of the bids placed.

As you can see in the image above – total of 40% bids have been placed till now. The winner will be declared when this touches 100%. Q4: What happens to the winning bid amount in the highest unique bid? The winner is the one whose bid is uniquely highest. The winner is NOT supposed to transfer the winning bid amount. The auction asset, will be sent across to the winner without any required payments.

Q5: What do you mean by "highest unique bid"?

• Highest: Your bid is higher than any other participant's unique bid.

• Unique: No other participant has placed the same bid amount as you. To win, your bid must satisfy both these conditions.

Q6: Can I place multiple bids? Yes, you can place multiple bids in the auction to increase your chances of winning. With every bid placed – it shows you the status in real time on highest and unique parameters.

To win – you need to strategize and come up with bid values which are uniquely highest. A blue up arrow means that – though the bid is highest – mathematically – it is not the highest unique. A green thumbs-up icon shows that a bid is highest / unique.

Q7: What happens if my bid is not the highest or not unique? If your bid is not the highest or not unique, you will not win the auction. Q8: What is the "Top Bid Threshold"? The Top Bid Threshold is a predefined amount that is less than the retail price of the product. The winner of the auction will pay this amount to claim the product. The threshold ensures that the winner gets the product at a competitive price.

Q9: How does the "Buy Now" option work for non-winners? If you do not win the auction, you have the option to buy the product at the retail price minus the amount you spent on bids. This allows you to still claim the product without losing your investment. The way it works is that – you need to pay the full amount to claim the product – and all your PLAYs would be refunded back to you.

Q10: Are my bids visible to others? No, other participants cannot see your bid amounts. However, you will be informed if your bid is the highest and unique or not, so you can adjust your strategy accordingly.

Q11: What happens if the auction does not receive enough bids? For a registration required auction: The auction will only end when the required number of bids will be reached. The auction will keep working till then. For a open-auction: If the required number of bids is not reached within the specified time, the auction will be cancelled, and all participants will receive a refund of their PLAYs.

Q12: What do I need to participate in a Highest Unique Bid Auction on AuctionX? You need PLAYs which are the ingame tokens for placing bids. To get PLAYs you will need $AuX or any other currency that the auction house is supporting – and will be converted to PLAYs.

Q13: What happens when I win? Once you win – you will be notified about the same. The auction house will need your shipping details to ship the auction asset to you.

Q14. Do I need to pay anything like taxes / shipping etc.?

This is entirely a decision of the auction house and will usually depend on the product. You should check the product info, auction info for the auction asset to know more. Q15: How is this different from a regular auction? Unlike regular auctions where the highest bid wins, in a Highest Unique Bid Auction, the winning bid must be uniquely highest. This adds an element of gamification, strategy and competition, making the auction more engaging and fun.

Q16: Why do I need to register for some auctions? The auction house decides if an auction is open for all – OR requires pre-registration. If there is a registration required then only people who have registered – would be able to participate in the auction as it goes live.

Q17: How do I know if my bid is unique? Once you place a bid, the platform will notify you if your bid is unique or if it matches someone else's bid. You’ll be informed whether your bid is the highest and unique, allowing you to strategize your next move.

Q18: Can I cancel or change my bid once it’s placed? No, once a bid is placed, it cannot be cancelled or changed. Each bid is final, so be sure to consider your strategy carefully before submitting a bid.

Q19: How is the auction winner determined? The auction winner is the participant who places the highest and unique bid when the auction closes. If no unique bid is the highest, the next highest unique bid is considered the winner.

Q20: What does "closed bid" mean in this context? "Closed bid" means that participants cannot see the bids placed by others. This keeps the competition fair and prevents participants from simply outbidding each other by small margins.

Q21: Can bots participate in the highest unique auction? No, highest unique auction DOES NOT support bots.

Q22: How long does each auction last? The auction lasts until a predefined number of bids are placed or until the time-window expires. If the minimum number of bids is not reached within the time limit, the auction is cancelled, and all PLAYs are refunded.

Q23: How does the platform ensure the auction is fair? The auction is designed with strict rules to ensure fairness, including the closed bid system, bid verification, and real-time notifications. Each bid is logged on the blockchain + all settlements are done over blockchain – to ensure fair play.

Q24: Can I use my previous PLAYs in future auctions? Yes, any PLAYs that are not spent and are still in the wallet, can be utilized in any future auction. This allows you to continue participating in upcoming auctions.

Q25: What happens if two participants place the same highest bid? If two participants place the same highest bid, neither bid will be considered unique, and therefore, neither can win. The auction will continue until a bid is placed that is uniquely highest.

Q26: Can I see the history of my bids? Yes, you can view the history of all your bids within the auction interface. This allows you to track your progress and adjust your strategy as needed.

Q27. When can I see all the bids placed by all users? You can see all bids placed by all users along with timestamp and value – after the auction ends. This data is stored on the blockchain and can be viewed any time directly over the chain or on the platform.

Q28: Are there any restrictions on who can participate in these auctions? Unless regulated by laws of the land – all auctions are open for all participants across the world. It is the responsibility of the bidder to check for compliance to his/her local laws.

Q29: What happens if I win an auction and the auction house is not able to provide the auction asset which I have won? In most of the auctions, if the auction house is not able to deliver the promised auction asset to you – it has the right to transfer you equivalent stable coins (USDC / USDT) to your registered wallet.