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In a traditional exchange, priority is a race. On Likely, priority is an Auction. Because Likely batches trades into 500ms windows, being a few milliseconds faster doesn’t help you. Instead, you signal the importance of your trade through a Tip.

How Priority is Decided

Every half-second, the matching engine looks at all submitted bundles and ranks them using a simple set of rules:

Truthful Bidding (Vickrey Model)

To ensure the auction is fair and predictable, Likely employs a Vickrey (Second-Price) Auction. The bundle with the highest declared tip executes first but only pays the amount of the second-highest declared tip. This “Second-Price” logic makes it strategically optimal for you to bid exactly what the priority is worth to you. You don’t have to guess what others are bidding; you just state your value, knowing you’ll only pay the marginal cost of being first.

Strategic Competition: Bribes & Amends

The 500ms window creates a unique strategic dynamic. If a major news event happens at the 100ms mark, you have 400ms to react.
  • Amend: You can change your orders to match the new info.
  • Bribe: You can increase your tip to “jump” the queue before the window closes.
[!WARNING] Bribing or Amending your bundle gives it a new timestamp. While you might move up because of a higher tip, you lose your tie-breaker advantage (the original timestamp).

Comparison: Speed vs. Value

This system ensures that the market’s “prime” opportunities go to the traders who provide the most value to the network, not those with the most expensive hardware.

Next Steps