Massallah pertaining to auctioning and bidding

There is a new auction website. the way it works is as follows
1.An item for auction starts at R0. you need to pre purchase “bids” at R5 each bid.
2. Every time you bid for an item there is a cost attached -just to bid for eg R5 “1 bid”. the item price then moves to R0.01
3. as a new person bids (with a cost of R5 for that person), the item price moves to R0.02
4. Should you wish to outbid that price (R0.02) it will cost R5 again just to bid “1 bid”.
5. should you win you will have to pay the R0.02 for the item. you would also had paid amounts for each bid you made (in the above scenario 2 bids at R5 each).
is this permissible?