> For the complete documentation index, see [llms.txt](https://kuiper.gitbook.io/kuiper-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kuiper.gitbook.io/kuiper-docs/protocol/rebalancing-auctions/settling-an-auction.md).

# Settling an auction

### Bonded Settlement

To ensure that basket token holders get the best price possible for rebalances, Kuiper supports time-delayed settlement via a bonding mechanism that gives the rebalancer skin in the game.

The auction bonder must call `settleAuction` on the auction contract within **24 hours** of bonding to avoid forfeiting their bond.

{% hint style="danger" %}
The bonding mechanism exists to disincentivize auction participants from bidding on an auction that they have no intent to settle. 

Bond forfeiture is irreversible, and the proceeds are distributed pro-rata to basket token holders.
{% endhint %}

The `settleAuction` function will:

* transfer any specified tokens/amounts from the basket contract to the auction bonder
* transfer any specified tokens/amounts from the auction bonder to the basket contract
* check that the basket contains sufficient tokens/amounts to satisfy the pending rebalance
* update basket parameters to reflect the successful completion of the rebalancing process
* transfer any bounties on the rebalance to the auction bonder.

### Atomic Settlement

It is also possible to atomically bid on a rebalance and settle an auction without posting a bond.