# NFT Random Selection Auction Guides
#### What is an NFT lottery auction?
In the NFT lottery auction, participants buy lottery tickets for a fixed amount (the principle amount) to enter into the draw. The principle amount is set by the pool creator.
At the end of the running time of the lottery pool, the winner is selected randomly by a smart contract and the principle amount is automatically swapped for the auctioned NFT. The pool creator claims the money raised from the sale, while the winner will claim the NFT from the pool.
The lottery auction does not have permanent losses for non-winning participants. Participants that are not selected as a winner, can claim their principle back from the pool.
The NFT lottery auction is built for mass usage. The maximum number of participants that can enter into a draw is 60,000 people and the solution is gas-friendly with low fees to enter into the draw. Fairness and integrity are secured by random selection and execution by smart contracts.
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