# Reserve Prices & The GBM Cancellation Period

GBM auctions don’t use traditional reserve prices. Instead, we offer a smarter, more flexible alternative: **The GBM Cancellation Period.**

### ⚙ How It Works

**If enabled**, this feature gives the seller a short window after the auction ends to:

* **Accept the final bid**, or
* **Cancel the sale** if the price doesn’t meet their expectations

If the seller takes no action, the sale is automatically finalised.

### 📤 If the Seller Cancels

They must pay a cancellation fee that covers:

* **All incentive debt** - ensuring every outbid bidder receives their incentive
* **The incentive** to the winning bidder
* **A full refund** of the winning bid
* **The GBM protocol auction fee + any other fees set by the auction house publisher**

The exact fee amount depends on the **incentive preset** and **bidding activity** — calculated once the auction ends.

### 🤝 Why It Works

This gives sellers a **fair way out** if the price isn’t right without relying on rigid price reserves. And because cancellation isn’t free, it discourages abuse, **protects bidders**, and keeps the system **trustless by design.**