In a Free Agents Acquisition Budgets (FAAB) waivers system, each manager receives a dollar amount to place blind bids on waived players. The manager with the highest bid at the end of the waiver period claims that player and that bid amount is deducted from the team's acquisition budget. If multiple managers place an equal bid on a player, ties are broken on a continual rolling list basis: waiver claims are processed in waiver priority order and each successful claim moves a manager to the end of the waiver priority list.
Managers may bid anywhere from one dollar to their remaining acquisition budget on a waived player. Managers with no remaining budget must wait until a player clears waivers and becomes a free agent to add him to their team.
Note: Your FAAB is different than your initial draft budget. If you have money left over after an Auction Draft, it will not be added to your FAAB.