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How Do Auctions Work?
Last Updated: October 20, 2021
Welcome to the exciting world of collecting NFTs! NFTs, or "Non-Fungible Tokens," are one-of-a-kind tokens that represent a unique good or asset. NFTs are transforming the adult industry and bringing power back to the creators.
In this guide, we’ll show you how auctions work on NFTitties and offer some advice for discovering new and upcoming creators.
Built on Ethereum
Every interaction with auctions (placing bids, winning and claiming NFTs, etc.) on NFTitties are recorded on the Ethereum blockchain. ETH is the cryptocurrency used for all transactions on the Ethereum network, and it’s the one of two currencies we use on NFTitties. MATIC is the native token of the Polygon blockchain, which is essentially an Ethereum sidechain, which is why you can use the same wallet for both of these cryptocurrencies. All of the content on our platform can be bid on and purchased with either ETH or MATIC, depending on the choice of the creator. Creators get paid in it too!
Start at a minimum price
Creators set a starting price for the auction and buyers must place bids at or above this price. Starting prices are made public on NFTitties.
After the first bid is placed on an NFT at or above the starting price, a 24-hour countdown for the auction starts. An auction comes to an end when the countdown has run out of time.
Time extensions for auctions
If a bid is placed within the last 15 minutes of an auction, the countdown will reset back 15 minutes. The addition of 15-minute extensions give time for each buyer to have their final opportunity to place a bid, and for the NFT to find its true market value. Time extensions can go on indefinitely until no other bids are placed within the last 15 minutes of an auction.
How do I place a bid?
Connect your wallet to NFTitties and make sure you have enough ETH or MATIC in it to place a bid and pay for gas fees. Need help setting up a wallet and getting ETH? Check out this guide. Go to the page of the NFT you would like to bid on and click “Place a bid.”
If you’re the first to place a bid, you must exceed or meet the starting price set by the creator. If the starting price has already been met, the next bid must exceed the current bid by 10%. As you are placing the bid, you’ll get an error message if your bid is too low or a confirmation to proceed if your bid is all set.
Confirm the transaction with your wallet and pay a gas fee to complete the process (you can read more about gas fees and how they keep the Ethereum blockchain running here). You’ll need to pay for gas each time you place a bid, or submit any kind of Ethereum transaction.
When the transaction is completed, the funds will be taken from your wallet and placed in escrow in NFTitties’ smart contract on the Ethereum blockchain. NFTitties is a non-custodial platform, which means we don’t have access to your funds at any point of the process.
If you haven’t done so yet, you can add in your email address to receive notifications related to your bids. You can also track the transaction’s status on the Ethereum blockchain by clicking “View on Etherscan.” or “View on PolygonScan.”
I got outbid. Now what?
Along with seeing the status change on the bids page, you’ll also receive an email notification if you are outbid. The funds from your original bid will be deposited back into your wallet. If the auction is still live, you can place another bid higher than the current bid by clicking on “Bid again.”
After you place the new bid, your wallet will prompt you to confirm the new transaction.
I won the auction! Is the NFT mine now?
If you are the highest bidder, the starting price has been met, and the countdown timer has expired, then — congratulations! — you won the auction.
If you added your email address to your profile, you’ll receive an email notification. To officially add it to your wallet and collection, you will need to settle the NFT which requires submitting a transaction to the Ethereum blockchain to conclude the auction.
What happens when I settle the NFT?
Make sure to settle your NFT soon after you win an auction. By settling the NFT, you’re removing it from escrow and transferring it to your wallet. This will simultaneously remove the corresponding ETH or MATIC funds from escrow and send them directly to the creator.
To settle your NFT, click “Bids” in the upper right section on any page. Select “settle your NFT” next to the artwork you won. Your wallet will prompt you to confirm the transaction. Confirm the transaction and pay a gas fee to complete the process. Wait for the transaction and transfer to complete. Track the status by clicking “View on Etherscan.” or “View on PolygonScan.”
This completes transfer of ownership of the NFT from the creator to you.
How can I share the NFT that’s in my collection?
As you settle your NFT, you’ll have the opportunity to share the news on Twitter. Click “Tweet It” to auto-generate a message for you to announce the latest addition to your collection. If they’re on Twitter, make sure to tag the creator in your tweet—this is a big moment for you and for them!
If you haven't already, reserve a NFTitties username and fill out your collector profile. Once the NFT is added to your collection, it'll show up on your profile so everyone can see your collection.