BookCoin Timed Auctions Overview
The BookCoin Marketplace facilitates time-based auction formats - Scheduled Auctions. These Terms explain the basic mechanics and risks involved in this format and provide best practices for initiating and participating in Auctions.
In a Scheduled Auction, the Owner establishes a specific start and end time for an Auction for the item to go live. Owners will include a Starting Price and can optionally include a reserve price to be met as well. As long as the Starting or Reserve Price, if relevant, is met by an Auction Participant, the work will be sold.
Upon making an offer, BKCN will confirm the requisite funds are available from the collector’s wallet. If the appropriate funds matching the offer are not available, the offer will be automatically withdrawn. If the funds are available, the bid will be placed. All bids are legally binding.
Upon the winning bidder, the highest bidder will receive a notification to claim their purchase and complete the transaction.
The opportunity to finalize the transaction will last approximately 24 hours from when the notification is sent. Should the collector fail to complete the transaction in that time, the same process will be conducted with the next highest bidder, and then to the third highest bidder should the second fail to complete the transaction as well. In the case that none of the top three bidders complete the transaction, the auction will be canceled and reviewed by BKCN.
A Scheduled Auction may be cancelled by a seller if the reserve price is not met, the highest bidder doesn’t move forward with the transaction or at anytime by the administrator if foul play is suspected. In this case, there will be no winner and the issues will be addressed.
If a bid is placed within the last 10 minutes of a Scheduled Auction, the auction time is extended by 10 minutes from the time of the bid in order to accommodate last minute bids.
The countdown timers in the UI are an approximation. Participants should get their bids in as early as possible to ensure that they are processed by the Auction smart contract before the close of the Auction.
Auction Fees and Royalties
BookCoin applies the same fee structure to works sold in Auctions as other methods. Royalties are still in effect for works sold during an Auction. A more detailed breakdown of the BookCoin fees and royalties can be found in our Terms of Service.
Risks Associated with Auctions
Bids are Legally Binding.
Bids placed during a Scheduled auction are legally binding. Any sense of foul play or in the case you don’t claim your bid and foul play is suspected, your BookCoin account will be suspended.
Market Volatility and Network Failures
Ethereum is a volatile asset that often experiences periods of high price volatility and instability. Often a consequence of rapidly changing prices and demand, the Ethereum blockchain can also experience significant periods of network congestion, slow to stagnant processing speeds, and unpredictable failures. Auction Participants understand and acknowledge that bids submitted during an Auction may change in market value through the duration of an Auction possibly at the significant expense of the bidding party.
Auction Best Practices
Participants should follow these Auction best practices to reduce risks of initiating and participating in smart contract-enabled Auctions.
Whether you are an Owner initiating a Scheduled or Timed Auction or an auction participant placing a bid on a valuable BookCoin work, you should always make certain that you are entering correct and accurate Bids, Starting Bid Prices, Reserve Prices, and other Auction parameters. Our smart contracts will not be able to recognize your mistake and you may be without a remedy if, for example, you accidentally placed an extremely high bid or sold a work at a disappointingly low price.
Enable and Monitor Email Notifications.
All Auction Participants must enable and monitor their email & account notifications to stay apprised of Auction updates. If you don't enable and actively monitor notifications you may, for example, miss an auction, lose an auction to a higher bidder without knowing, or be unable to accurately inform your Collectors about the developing status of your auction.
Don't Wait Until the Last Moment.
Our auctions approximate time. Accordingly, timers are only approximations of time and subject to error. Auction participants should not wait until the last possible moment to place a bid on works.
Respect Other Auctions.
Owners need to be certain that the market has accurate and timely information about the existence or status of an Auction. All Users, whether participating in Auctions or not, are expressly forbidden from making any false or misleading public statement relating to the existence, timing, or status of another User's scheduled, anticipated, or ongoing Auction.
Ensure Compliance with our Terms of Service and the Law
All Auction Participants must comply with these Auction Terms and the BookCoin Terms of Service. Participants who violate any Terms may be removed from the BookCoin Platform, prosecuted by law enforcement, or suffer reputational harm within this tightly knit community of Authors and Collectors.
No Wash Trading, Market Manipulation, or Self-Bidding
Users are generally forbidden from engaging any deceptive conduct that may prevent competitive or fair bidding, artificially inflate or deflate the price of a work, simulate demand for a work (i.e, "wash trading"), or any other anticompetitive bidding conduct such as but not limited to “puffing,” “chill bidding,” “shill bidding,” “sham bidding,” or “sock puppet bidding.” Owners are expressly forbidden from bidding or purchasing their own auctioned works, especially for the purpose of artificially influencing the price of the work. Users agree to report suspicious market activity of other Auction Participants. If a User suspects that one or more Users are in violation of these Terms, the User should promptly inform the BookCoin team at hello@BookCoin.com.
No Attacking or Interfering with the Smart Contracts
Users are forbidden from engaging in any attack, hack, denial-of-service attack, interference, or exploit of any BookCoin smart contract. Operations performed by a User that are technically possible to be performed on or against a BookCoin smart contract may nevertheless be a violation of our Terms of Service and the law.
No Money Laundering or Terrorist Financing
Users are expressly forbidden from listing items for Auction, making bids during an Auction, or purchasing a work in an Auction for the purpose of concealing economic activity, laundering money, or financing terrorism. For example, and without limitation, Auction Participants are forbidden from using Auctions to conceal or transfer proceeds relating to criminal activity or to pay for a work for any other reason than to obtain the work.
Violation of these Terms May Result in Revoked Restricted Auction Privileges
BookCoin reserves the unilateral right to terminate a User's account, restrict a User's access to the Auctions, or otherwise limit any User's ability to use the BookCoin Platform for violation of these Terms. BookCoin has absolute and sole discretion to determine whether a User's conduct constitutes a violation of these Terms.
Disclaimers, Waivers, and Releases
User Acknowledges the Risk of Smart Contracts and Blockchain Technology
BookCoin Auctions utilize blockchain technology, including non-fungible tokens, cryptocurrencies, consensus and algorithms. Users acknowledge and agree that such technologies are experimental, speculative, and inherently risky. Users acknowledge and agree that the BookCoin smart contracts may be subject to bugs, malfunctions, timing errors, hacking and theft, or changes to the protocol rules of the Ethereum blockchain (i.e., "forks"), which can adversely affect the smart contracts and may expose you to a risk of total loss, forfeiture of your digital currency or BookCoin works, or lost opportunities to buy or sell BookCoin works. BookCoin assumes no liability or responsibility for any such smart contract or related failures, risks, or uncertainties.
Users Assume the Risk of Participating in Auctions
Users hereby acknowledge and assume the risk of initiating or participating in Auctions and take full responsibility and liability for the outcome of any Auction they participate in, whether or not the smart contracts, the BookCoin Site, or other Auction participants behave as expected or intended. Users hereby represent that they are knowledgeable, experienced and sophisticated in using blockchain technology, the BookCoin site, and in initiating Ethereum-based transactions.
BookCoin Makes No Representations or Warranties
BookCoin makes no representations or warranties, express or implied, written or oral, made by or on behalf of BookCoin in connection therewith, including any representations or warranties of title, non-infringement, functionality, merchantability, usage, security, suitability or fitness for any particular purpose, workmanship or technical quality of any BookCoin item or work, smart contract code, or software
BookCoin is Not Liable for the Outcome of Any Auction
BookCoin shall not be liable to you for contract, tort, or any other types of damages, including indirect, special, incidental, consequential, punitive or exemplary damages arising out of or related to participation in or the outcome of a BookCoin Auction or transaction, whether or not BookCoin has been advised or knew of the possibility of such damages. BookCoin's liability for damages under this Agreement shall in all cases be limited to, and under no circumstances shall exceed, the amount of Auction proceeds actually received by BookCoin as profit after deducting all costs, fees and liabilities incurred by or on behalf of BookCoin.
BookCoin May Modify these Terms and the Smart Contracts
BookCoin reserves the right, in its sole and absolute discretion, to amend, modify, alter or supplement these Terms and the smart contracts accessible through the BookCoin Site from time to time.