Bid Cap sets a hard ceiling on what Meta will bid per auction event, giving the advertiser the most direct control of any bid strategy over per-unit cost, at the expense of delivery volume and stability. If the cap is set below what's needed to win enough auctions, the campaign may underspend or stop delivering altogether.
Because it requires the most auction expertise to set correctly — usually derived from historical CPA or CPM data — bid cap is generally reserved for experienced media buyers managing mature campaigns where predictable unit economics matter more than maximizing volume, such as tightly-margined nutra offers.
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