> 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/gbm-auction-incentives.md).

# GBM Auction Incentives

### 🎯 How Incentives Are Calculated

Your reward when you’re outbid is dynamic and based on three key factors:

* **The amount you bid**
* **How much your bid exceeds the previous bid by**
* **The auction incentive preset selected by the seller**

### ⚙️ Incentive Presets Explained

Sellers choose from four incentive presets — each balancing risk and reward differently:

* **Low Preset** - Min return: **0.5%**, Max return: **2%**
* **Medium Preset** - Min return: **0.5%**, Max return: **5%**
* **High Preset** - Min return: **1%**, Max return: **10%**
* **Degen Preset** - Min return: **2%**, Max return: **20%**

These presets let sellers fine-tune how competitive and rewarding their auction will feel.

### 🔍 Want to See How Incentives Work in Action?

Try the [**GBM Auction Simulator**](https://www.gbm.auction/simulator)