What is the Deposit Amount?

A deposit amount is made by bidders before participating in a bidding process. This amount acts as a financial assurance and enables the bidder to place multiple bids. It’s designed to be larger than individual bid amounts to cover the potential volume of bids a bidder might want to make.

For instance, if a bid is set at 100 gwei, a bidder might need to deposit an amount like 1000 gwei to ensure they can place several bids without needing to make additional deposits for each one. This system ensures that bidders are serious and have the financial backing to support their bids, while also allowing providers to manage and monitor bidding activities efficiently.