> For the complete documentation index, see [llms.txt](https://docs.gbm.auction/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gbm.auction/how-a-gbm-auction-works.md).

# How A GBM Auction Works

<figure><img src="/files/ybZmdl0Ib9eUkmnlVqto" alt=""><figcaption></figcaption></figure>

In a GBM Auction, **every bidder gets rewarded — not just the winner**. \
This is the core part of our "Win-Win" auction system.

### ✋ Step 1: Place a Bid

* Place the amount you want to bid.

All GBM bids are **fully funded -** meaning you send funds onchain to the GBM smart contract when you place your bid.

### 🎁 Step 2: Get Rewarded When Outbid

If someone places a higher bid:

* You immediately get 100% of your bid back
* You also receive an incentive reward

The exact incentive you could earn is shown to you **before you place your bid**.

### 🏁 Step 3: Win The Auction

If you're the highest bidder when the auction ends - **you win the asset. Simple.**