The only time that a user may place, alter or withdraw a Bid is when the Auction is in Status Live. The user has to follow the bidding process which can be outlined as follows:
New Bid (Place Bid)
- When the user has not bid on an auction as yet, he/she can click or tap on the Place Bid button.
- A New Bid may be placed on any of the 10 Auction days. It does not only have to be placed on Day 1.
- The minimum Bid must be more or equal to either $1.00 in value or the StaX Price, whichever is the greater.
- Once a Bid has been placed, the user may only withdraw the bid if the Bid Amount is less than the StaX Price. The StaX Price is calculated from Day 2 onwards. Any bids placed on Day 1, therefore, cannot be withdrawn until Day 2; and only if the Bid Amount was less than the StaX Price.
- Once a Bid has been placed the bid amount pledged, is locked or reserved in the user wallet, until the auction ends.
Increase Bid Once a Bid has been placed, the user may never reduce the Bid Amount, only increase it.
- This can be performed any time, while the Auction is still Live.
- Increasing the Bid has the same restrictions as a New Bid, with the added restriction that it may only be placed if it is higher than the Previous Bid Amount.
Withdraw Bid Once the StaX Price has been calculated (Day 2 onwards), this determines whether a Bid qualifies or not.
- If it is higher than or equal to the StaX Price, it qualifies and cannot be withdrawn.
- If it is lower than the StaX Price, the Bid does not qualify, in which event the user is notified of his/her Bid being Too Low. Only when the Bid is too low, can the user Withdraw the Bid.
- Withdrawing a bid causes the Bid to be canceled and the funds that were reserved for the Bid, are returned to the user’s Wallet.
Distribution After the Auction ends successfully, the distribution of StaX takes place, distributing the number of StaX to all successful bidders, based on the final calculated StaX Price.
- The distribution is based on StaX Price vs Bid Amount, per bidder.
- Only whole StaX are distributed. Fractional ownership is therefore not possible.
- The number of StaX that the bidder receives is calculated as: Bid Amount divided by the StaX Price.
- No Bidder may receive more than 5% of the number of StaX listed for auction.
- Any residual will be refunded to the bidder. For example:
- If Bid Amount was $5.50 and the StaX Price was calculated as $2.00.
- The bidder will receive 2 StaX (calculated as $5.50 divided by $2.00) and $1.50 is refunded to the bidder, since the $1.50 is not enough to purchase a third StaX.
Auction Canceled If an Auction is ever Canceled, all bidding should have stopped by this point and any bid amounts reserved during the auction will be returned to the respective bidders. The Auction must be rescheduled by the Issuer upon which it then starts with Scheduled status (1) again.
