Well Auctioned endeavors to provide the most accurate forum possible for our customers to conduct their auction simulation. We blend incentives and penalties in a series of checks and balances to mitigate inaccurate bidding. We also depend on feedback from our community to stay at the forefront of price discovery for IPOs.

Incentives

We encourage all participants to bid accurately by providing the best bidders with a detailed Premium Auction Report on the auction simulation's results.

This detailed report is quite valuable — institutions pay tens of thousands of dollars for similar market research — but our reports are available free to bidders with the "best" bids in our auctions. The report includes complete demand profiles for aggregated individual and institutional investors. The profiles show the amount of bidding interest versus share price. This approach encourages customers to submit their best estimates of value. Based on our previous Wall Street IPO underwriting experience we believe that knowing the details and trend of an auction is incredibly empowering. See our Sample Auction Reports to get a sense for the data we provide.

For our purposes, the "best" bids are those that are closer to the auction simulation's clearing price. Also, larger bids are considered better than smaller ones since this approach encourages larger investors to participate accurately and not try to "game" the auction simulation. The table below details the present requirements to receive the Premium Auction Report.

Required Bid Accuracy to Receive Premium Auction Report for Free
Auction Simulation Bid Amount	Required Accuracy of Bid to the Auction Simulation Clearing Price
W$100	0.10%
W$1,000	0.50%
W$10,000	1%
W$100,000	5%
W$1,000,000	20%
W$10,000,000	All bids of this size receive Premium Auction Report

Note: Well Auctioned supports multiple bids by a participant in a given auction. This feature is designed for use by expert users only. When multiple bids are placed, it is much harder to earn the Premium Auction Report than is detailed in the Required Bid Accuracy Table. The rating engine for the Premium Auction Report favors comparatively large bids near the auction clearing price over scattered bids even if some of the scattered bids are closer to the auction clearing price. This prevents bidders from using multiple bids to "game" the simulation to ensure a "winning" bid. Well Auctioned will not be held responsible for a multiple bid participant failing to earn Premium Auction Report status.

Finally, we will provide additional auction tokens or discounts on future research reports to those customers who provide post IPO feedback to us and complete a short questionnaire designed to improve service, enhance our community's database about transactions (for future data mining), and improve accuracy in future IPO simulations.

Penalties

We penalize inaccurate bids in two ways:

1. We analyze the bids and reserve the right to reject bids that we believe are manipulative, or just too far out of line to be representative. We limit the post-simulation information received by such bidders due to the fact that they were rejected, providing only the clearing price of that auction simulation. We encourage all users to review the prospectus and read independent research reports to gain additional perspective on the company.
2. We reserve the right to suspend or prohibit future participation in our service if we witness continued bidder behavior which we feel is detrimental to our community, which may also include manipulative behavior on our member chat forums.

Trust

We rely on our customers to use their best efforts to determine what they really think represents fair value to them. We understand that fair value can be a range and dependent on multiple inputs that are always changing. We just encourage participants to give it their most prudent attempt.

Finally, since this is really your "community" and your "data," we hope our customers will care to influence friends and colleagues to take the same prudent approach that will maintain accuracy and provide sustainable value to all customers in the community.