Irrevocability of Bids is the legal or protocol-driven principle stipulating that, once submitted, a bid or quote within a crypto Request for Quote (RFQ) or auction system cannot be withdrawn or modified by the bidder. This condition ensures commitment, fairness, and predictability in competitive market mechanisms. It promotes reliable price discovery and transaction finality.
Mechanism
Within a smart contract-based RFQ or auction system, bid irrevocability is implemented by locking submitted bids upon reception, often using cryptographic commitments or on-chain transaction finality. Once a bid is recorded on the blockchain, its content becomes immutable and publicly verifiable, preventing any unilateral alteration by the submitting party. This architectural design provides trustless enforcement of bid commitments and transparency.
Methodology
The strategic rationale behind bid irrevocability in crypto trading systems is to maintain market integrity and prevent manipulative practices, such as bid retraction after adverse market information surfaces. It enforces accountability on bidders, compelling them to submit well-considered offers based on their actual intent. This approach enhances the reliability of pricing mechanisms and facilitates efficient capital allocation in institutional crypto options and spot markets.
An RFP becomes legally binding when its language transcends inquiry, creating a firm offer with explicit promissory terms that are accepted by a bidder's compliant submission.
A seemingly non-binding RFP can be interpreted as binding when the language and conduct of the parties indicate an intention to create a contractual relationship.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
