FAQ

Frequently asked questions on the protocol.

1. What is AZEx?

2. How to list a new market?

3. How to list an existing market?

4. How to list on the perpetual market?

5. What is Mark Price？

6. How to Profit from Perpetual?

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What is AZEx?

AZEx is a decentralized perpetual contract protocol built on Uniswap v4 Hooks, featuring liquidity bonding, auto-deleveraging (ADL), dynamic fee mechanisms, and oracle solutions, enabling permissionless market creation and trading.

• 100% On-Chain Execution Model: All operations are fully executed on-chain using custom Uniswap v4 Hooks, ensuring transparency with no off-chain dependencies.

• Innovative Rebasing Share Model: AZEx uses a flexible share system that dynamically tracks user positions, ensuring accurate exposure and P&L even during high volatility.

• Modular & Extensible System: Modular design for flexible extension, upgradability, and governance.

How to list a new market?

New Market: Create a new token on the AZEx protocol, initialize a liquidity pool on Uniswap v4, and launch the spot market through a Fair Launch.

1. Navigate to the Market page and click “List a market” to start;

2. Select “New Market”;

3. Fill in token details and social links — complete information helps increase your token’s visibility;

4. Optionally, choose “Advanced” for more flexible token launch configurations;

5. Click “Listing” and pay the deployment fee — your market will be successfully created and available for viewing and trading on the Market page.

How to list an existing market?

Existing Market: Set up a Uniswap v4 liquidity pool and add initial liquidity for a token issued by another protocol to activate its spot market.

1. Navigate to the Market page and click “List a market” to start;

2. Select “Existing Market”;

3. Fill in token details and social links — complete information helps increase your token’s visibility;

4. Set the initial price, liquidity range, and add initial liquidity as required;

5. Click “Listing”, pay the deployment cost, and once liquidity is added, your market will be available for viewing and trading on the Market page.

How to list on the perpetual market?

All tokens go through four stages: Premarket → Spot Market → Reserve Liquidity → Perpetual Market

• Premarket: Initialize a liquidity pool on Uniswap v4 to begin the token onboarding process.

  • New Market: Create a new token on the AZEx protocol, launch with a Fair Launch and establish the initial liquidity pool.

  • Existing Market: Create a Uniswap v4 liquidity pool and add initial liquidity for a token issued by another protocol.

• Spot Market: Launch the spot trading market, allowing users to freely buy and sell the token.

• Reserve Liquidity: Continuously accumulate liquidity until the threshold for activating the Perpetual Market is reached.

• Perpetual Market: Activate the perpetual contract market and enable leveraged trading.

Perpetual Market Activation Threshold: Within a 1.8% range of the spot price, both the token and azUSD must have at least $200,000 in liquidity, sustained for 72 hours.

What is Mark Price？

Mark Price is a dynamically calculated price based on the spot market price, adjusted by a Premium Rate, and is used for trade execution and liquidation in perpetual markets.

$$\text{Mark Price} = \text{Spot Price} \times [1 + \text{Premium Rate}]$$

Premium Rate (PR) represents the deviation of the perpetual market price from the spot market price. It is determined by the ratio between net open interest (netOI) in the perpetual market and the weighted liquidity across the spot and perpetual markets:

$$\text{Premium Rate} = \alpha \times \left( \frac{\text{netOI}}{\text{weightedLiquidity}} \right)^{\beta}$$

• α and β are Adjustable weighting factors;

• When the market has net long positions, PR is positive;

• When the market has net short positions, PR is negative;

• When the net open interest is zero, PR is zero, and the Mark Price equals the Spot Price.

How to Profit from Perpetual?

Perpetual contracts are derivative instruments with no expiration date. They allow users to go long or short the market using azUsd without holding the underlying asset, enabling profit from price fluctuations.In perpetual trading, you can use leverage to profit through:

• Going Long: Expecting the price to rise — buy low and sell high to make a profit.

• Going Short: Expecting the price to fall — sell high and buy back lower to earn the difference.