How it works
Auctions
When Domain Parachute secures a domain with two or more backorders, a blind auction runs automatically. Only users who have placed a backorder for that domain are eligible to participate.
Where there is only a single backorder, the domain is awarded at the minimum backorder price of £39 (inclusive of VAT). No auction takes place.
Auctions are resolved immediately after the domain is successfully secured.
Proxy Bidding
All auctions use proxy bidding.
When you place a backorder, you submit a Proxy Bid — the maximum amount you are willing to pay for the domain. Auctions are blind and bids are not visible to other participants before or during the auction.
Proxy bidding ensures you only pay what is required to win, up to your maximum bid. You will never pay more than your bid, and you may pay less depending on bids received from other users.
You may amend your bid or cancel your backorder at any time until bidding closes — five (5) minutes before the domain becomes available.
If you are successful, you pay the second-highest valid bid plus an increment, or your own maximum bid if lower. Where no competing bid exists, you pay the minimum backorder price of £39.
If the highest bid is tied, the domain is awarded to the user who placed their backorder first, at their maximum bid amount.
Bid increments
Bid increments are calculated as follows:
- 5% of the second-highest bid
- Rounded up to the next £2.50 (below £100) or £5 (£100 and above)
- Maximum increment: £250
Example 1
£54.00 + £2.70 (5%) = £56.70 → £57.50
Example 2
£111.00 + £5.55 (5%) = £116.55 → £120.00
After the Auction
Once an auction is resolved, the winning bidder is determined and the domain is awarded to their account.
After completion, you can view auctions you participated in within your dashboard, including the winning price, the highest competing bid, the number of participants, and the outcome of your own bid.
