Question 1

The Sovereign L1 Paradigm: Beyond General-Purpose L2s

Accepted Answer

AFX is a high-performance Sovereign Layer 1 blockchain purpose-built for decentralized derivatives. While most Perp DEXs are built as "tenants" on general-purpose L2 networks (like Arbitrum or Base), AFX operates on its own dedicated execution environment. Why Sovereignty Matters: L2-based DEXs often suffer from "noisy neighbor" effects where unrelated dApp activity causes gas spikes or latency. Furthermore, L2s rely on centralized sequencers that create a "black box" risk. AFX eliminates these bottlenecks by controlling its own validator set and consensus, ensuring that 100% of the network’s resources are optimized for institutional-grade trading. AFX is a pure blockchain protocol, distinct from centralized offshore brokers.

Question 2

Fully On-chain Orderbook (CLOB) and Execution

Accepted Answer

In line with the evolution of decentralized finance, AFX pioneers the Fully On-chain Central Limit Order Book (CLOB). Unlike "hybrid" models that match orders in private off-chain servers, every state transition on AFX—including order placement, matching, and settlement—is executed and verified on the blockchain. This "on-chain trading" architecture ensures a transparent audit trail for every bid and ask, eliminating the risk of front-running by sequencers or phantom orders. By synthesizing CEX-level performance with the immutable transparency of blockchain sovereignty, AFX provides the security professional traders demand.

Question 3

High-Performance Infrastructure: Sub-100ms Finality

Accepted Answer

AFX achieves a medium latency of 100ms and a capacity of 100,000 Transactions Per Second (TPS), setting a new benchmark for on-chain performance. This is made possible through: DAG-Based Consensus: Leveraging directed acyclic graph architecture for asynchronous parallelism. ABCI Modular Architecture: Decoupling execution from consensus to ensure the mempool is optimized strictly for high-frequency order flow. The result is a zero-latency environment where price discovery and execution happen in real-time, rivaling top-tier centralized exchanges (CEXs).

Question 4

Institutional-Grade Risk Control: The ClearEng Engine

Accepted Answer

Trading perpetual futures at high leverage requires sophisticated, sub-millisecond risk management. AFX utilizes its proprietary ClearEng risk engine to power: 1.25% Maintenance Margin: AFX offers 4x the capital efficiency of industry incumbents (typically 5%). Tiered Margin System: Native support for Cross-Margin and dual-positioning, allowing quants to optimize collateral. Multi-Phase Liquidation: A robust, transparent process designed to prevent system socialized losses even during "Black Swan" events.

Question 5

Manipulation-Resistant Pricing & MEV Protection

Accepted Answer

Price manipulation is mitigated through a Median Pricing Mechanism. The AFX Mark Price is derived from the median of three independent components: native on-chain order book data and aggregated multi-exchange oracle feeds. To further protect retail and institutional traders, AFX implements MEV-Resistant Sequencing. This custom mempool logic prevents predatory bots from sandwiching trades at the protocol level, ensuring a fair and level playing field.

Question 6

Self-Custody and Professional UX

Accepted Answer

AFX is a non-custodial protocol where users retain 100% control of their funds via private keys. To bridge the gap between DeFi and CEX usability, AFX features: Session Keys: Trade with one-click authorization; no wallet pop-ups for every single order. Login with Email: Seamless onboarding alongside traditional Web3 wallets (MetaMask, Rabby). Full Mobile Parity: Unified analytics for PnL, risk exposure, and funding rates across desktop and mobile terminals.

Question 7

The Cross-Asset Hub: Crypto, Equities, and Commodities

Accepted Answer

AFX serves as a universal derivatives terminal, supporting linear perpetual contracts margined in USDC with up to 100x leverage. Crypto Market Leaders: Deep liquidity for BTC, ETH, SOL, XRP, ADA, and ONDO. Strategic Assets: Exclusive access to ecosystem perps like HYPE (Hyperliquid) and sovereign privacy assets like Zcash (ZEC). TradFi Synthetics: Trade tech giants like Nvidia (NVDA), Intel (INTC), MRVL, and SNDK, plus high-leverage ETFs like SOXL, QQQ, and SPY. Commodities: On-chain spot-indexed perpetuals for Silver (XAG).

Question 8

Zero-Gas Environment for Algorithmic Trading

Accepted Answer

High network fees are a barrier to high-frequency strategies. By operating on a custom L1 stack, AFX delivers a Zero-Gas experience. Traders can execute, modify, and cancel orders without the friction of fluctuating gas prices, making it the premier venue for grid bots, market-making scripts, and institutional HFT desks.

Question 9

Dynamic Revenue Model (Pre-TGE Phase)

Accepted Answer

In its current Pre-TGE (Token Generation Event) stage, AFX implements a dynamic fee-sharing model to incentivize core ecosystem participants: 50% to ALP (AFX Main Vault): Rewarding liquidity providers. 30% to VIP Rewards: Shared with high-volume traders based on tier levels. 20% Reserve: Strategically allocated for future token liquidity and market support. Allocations are periodically adjusted to ensure long-term protocol sustainability and liquidity depth.

Question 10

Community Sovereignty & The AFX Points Program

Accepted Answer

AFX is built for the community, with ~65% of the total token supply allocated to community incentives and ecosystem growth. There are No VCs and no predatory unlocks. The AFX Points Program spans 3 seasons with a 10,000,000 point pool, earned through: Trading: Execution and market diversity contributions. ALP Vault: Liquidity provision. Guild League: Team-based volume competitions. Accumulated points are convertible to AFX governance tokens at TGE, ensuring early supporters are the primary owners of the protocol.

Complete AFX technical FAQ

The Sovereign L1 Paradigm: Beyond General-Purpose L2s⌃

Fully On-chain Orderbook (CLOB) and Execution⌃

High-Performance Infrastructure: Sub-100ms Finality⌃

Institutional-Grade Risk Control: The ClearEng Engine⌃

Manipulation-Resistant Pricing & MEV Protection⌃

Self-Custody and Professional UX⌃

The Cross-Asset Hub: Crypto, Equities, and Commodities⌃

Zero-Gas Environment for Algorithmic Trading⌃

Dynamic Revenue Model (Pre-TGE Phase)⌃

Community Sovereignty & The AFX Points Program⌃