Bidding: Verification, Deposits, and Why a Bid Can Be Rejected
Bidder verification, deposit-to-bid mechanics, and the placeBid checks that catch the worst patterns at submission.
Placing a bid in a B2B auction is more involved than clicking a button on a consumer site. The platform has to verify the bidder is real, has the deposit on file, isn’t blocklisted, and isn’t exhibiting the patterns that anti-gaming flags. Each check happens at placeBid, before the bid lands.
Bidder verification
A company can’t bid until it’s been verified at the bidder level: KYC-style document upload, business registration check, optional credit reference. /admin/auction/bidders shows the platform verification state per company; only verified companies appear in the "can bid" set. Verification can be tiered (low-value-only, full-value, special-classes for restricted lots).
Deposit to bid
For high-value lots, the platform requires a deposit on file before bids are accepted. The deposit is held against the bidder’s eventual escrow obligation: if they win, it counts toward the deposit; if they lose, it returns; if they ghost (escrow_deposit_timeout), it gets forfeited and a strike is recorded. The deposit policy is platform-owned via /admin/auction/risk-settings and can require deposits for high-value lots.
The placeBid checks
Each bid runs through, in order: 1. blocklist check (companies.bidder_blocklisted = false), 2. verification check (KYC tier sufficient), 3. deposit check (sufficient on file for the bid amount), 4. anti-gaming check (rapid-bid + retraction signals, see anti-gaming article), 5. increment check (bid is at least the current high + the minimum step from the increment table), 6. timer check (auction is still live and accepting bids). Any failure rejects the bid with a specific reason; no silent failures.
Retractions
A bidder can retract a bid only in narrow circumstances (typo, lot description error). Retractions count against the anti-gaming retraction-pattern signal, so the rule of thumb is: don’t retract unless you really meant it. The platform notifies the seller when a bid retracts, so they’re not surprised by a phantom drop in the high bid.