Marketplace auctions - Overview (US)

In addition to regular drops, DraftKings also offers auctions for NFTs in the Marketplace. These can be found on the Auctions tab and are candle-style English auctions, with a set start time and a time-range for when the auction will end. 

Customers who wish to participate in these auctions must meet the requirements for accessing DraftKings Marketplace and have an available balance in their DraftKings wallet. 

Customer requirements

To participate in a DraftKings Marketplace auction, you must: 

Bidding

  • DraftKings will define a minimum starting price. 
  • In order to begin bidding, customers must place a bid equal to or greater than the minimum starting price.
  • Customers may not withdraw bids, and the current high bid can be found on the Auction Details page.
  • In order to place a new bid while a bid is outstanding, customers must enter a bid amount equal to or greater than the current bid + the bid increment.
    • Note: The bid increment can be found on the Auction Details page. 
  • Bidding will remain open until the auction ends in the predetermined time range.  
    • Note: DraftKings uses the candle auction to prevent bid-sniping; the practice of waiting to bid until the auction is nearly over. 

Escrow 

  • Customers must have 100% of the amount they are bidding in their account to place a bid. If a bid isn’t fully funded, a bid isn’t accepted. 
  • 100% of the top bid will be held in escrow and won’t be available to the customer for other purchases or withdrawal while in escrow. 
  • When the top-bidder is outbid, the funds for that customer are released from escrow, and the funds from the new top-bidder are then placed in escrow. 

Winning

  • When the auction is complete, the winning bidder’s escrowed funds are disbursed to complete the purchase.
  • The winning bidder will be notified via email that they won the auction. 
  • The NFT will be available in the customer’s portfolio immediately after winning. 

Frequently asked questions

What is a candle auction?

A candle auction has a set start time but a window of time in which it could end (ex: 5:00-5:15 pm). The undisclosed end time is used to ensure fairness and limit bid sniping; the practice of waiting to bid until the auction is nearly over. Traditionally done with a candle, we use a random time generator to help ensure the integrity of our auctions.

What is a time-extension auction? 

A time-extension auction is an “English auction” that includes a time-extension window to prevent bid sniping (the practice of waiting to bid until the auction is nearly over). DraftKings will define a minimum starting price, and in order to begin bidding, customers must place a bid equal to or greater than the minimum starting price. Customers may not withdraw bids, and the high bid can be found on the Auction Details page. 

In order to place a new bid while a current bid is outstanding, customers must enter a bid amount equal to or greater than the current bid plus the bid increment. Near the end of each auction, any bids placed in the extension window will extend the duration of the auction by the extension window. The extension window will function like a countdown clock that resets when new bids are placed. The time-extension auction will end when no new bids have been placed during the extension window. 

Once the auction ends, the top bidder will receive the NFT.

At what price does the bidding start?

For each auction, DraftKings will define a minimum starting price. In order to begin bidding, customers must place a bid equal to or greater than the minimum starting price.

How do I know how much I need to bid?

If no other customers have placed a bid, customers must place a bid greater than or equal to the minimum starting bid. If the bidding has begun, customers must place a bid greater than or equal to the current bid + the bid increment, found on the Auction Details page. 

Do I need funds equal to the entire bid amount to place a bid?

Customers must have 100% of the amount they are bidding in their account to place a bid. If not fully funded, a bid is not accepted.

Are my funds locked in escrow when I place a bid?

100% of the top bid will be held in escrow and won’t be available to the customer for other purchases or withdrawal while in escrow. When the top-bidder is outbid, the funds for that customer are released from escrow, and the funds from the new top-bidder are then placed in escrow. 

Can I withdraw a bid?

Customers may not withdraw bids. Only the high bid is held in escrow and can be found on the Auction Details page.

How is the auction resolved?

When the auction is complete, the winning bidder’s escrowed funds are disbursed to complete the purchase.