When you list your NFT in a reserve auction, your NFT will be placed into an escrow contract. The same process for if you are bidding on an NFT in a reserve auction, your bid amount will go into the same contract.

These smart contracts are designed to securely hold the bid of the highest bidder until the auction ends. This eliminates the risk that a bidder does not go ahead with the purchase after winning the auction.

Did this answer your question?