# First-price auction

An auction in which the eligible winner pays its winning bid under the auction's stated rules.

An auction in which the eligible winner pays its winning bid under the auction's stated rules.

## An example

A winning bid of $3 CPM clears at $3 CPM before separately specified fees.

## Why it matters

Actual billing also depends on eligible events, fees and the exchange's contract.


## Related terms
- [Auction clearing price](https://jolts.xyz/resources/glossary/auction-clearing-price)
- [Bid floor](https://jolts.xyz/resources/glossary/bid-floor)
- [Second-price auction](https://jolts.xyz/resources/glossary/second-price-auction)

## Next step

[Explore advertising](https://jolts.xyz/advertisers) or [monetize your AI app](https://jolts.xyz/publishers).