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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.
More details: Understanding 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
More details: Using Graveyard

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.
More details: Arbitraging Strategy

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?

A: We have dedicated channels on Twitter, Telegram, and Discord to provide the latest updates on Alpha-related news. If you have any specific questions, you can join our official Telegram group and we will have dedicated moderators who can provide support.
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