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Common Questions
1. What is the difference between Strike Token vs Other Tokens?
A: Strike Token is a completely new term coined by Alpha Finance Lab.
Holding 1 Strike Token gives users the same exposure to holding 1 unit of the underlying asset with less capital required.
2. What is the difference between Strike Token’s Market price vs Oracle price?
A: The oracle price is the price calculated from the aggregated average price feed given from the data oracle.
For instance, if ETH is currently at $3,000 then the oracle price for Long Strike Token ETH-2250 will be $775. Vice versa, the oracle price for Short Strike Token 4400-ETH will be $1,400.
Market price is the current price on the market (i.e. liquidity pool) that the token will be sold/bought at.
3. What are the liquidation risks?
A: Liquidation risk occurs when the asset price reaches 1.2x of the price ceiling/price floor.
For instance: Let’s say we have a Long Strike Token ETH-1500. This will be liquidated when the ETH price decreases to 1,800 (or 1.2*1500).
If we have a Short Strike Token 4500-ETH. This will be liquidated when the ETH price increases to 3750 (or 4500/1.2).
Users can refer to the Risk Level to see how close you are to the liquidation point and make appropriate actions to prevent liquidation.
4. What is the liquidation process for liquidators or liquidator bots?
A: This process will take place in the “Graveyard”. In short, to liquidate: Liquidator needs to bring in the opposite Strike Token (1 Long and 1 Short) Purchase the liquidated Strike Token at 30% discount Redeem “Dead Strike Token” back as USDC
For example: Confirm understanding then fill
5. How is AlphaX different from other derivatives trading platforms?
A: AlphaX uses a DeFi-native approach by combining strengths of perpetual swaps and leverage tokens to introduce a new concept, Strike Token. 4 key features are: Composable Scalable Easy to understand Capital efficient
6. How do I maintain peg?
A: When the price is not pegged, this will create opportunities for users to arbitrage and make profit which will eventually drive the price back to peg.
7. Where is the protocol fee collected?
A: When you Redeem Strike Tokens, we collect a 0.5% fee from the total value of Strike Token pair. Though, we do not collect any fee from Minting process.
8. Where should I go if I have additional questions?
Last modified 5mo ago
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