📚FAQs

Frequently Asked Questions

Can I cancel an order on a decentralised order book?

Yes you can cancel an order at any time in the "My Wallet" section.

What are the fees?

Maker fees are 0.2%.

Taker fees are 0.5%.

What's the difference between Maker and Taker ?

A maker is somebody who creates an Order first and it sits in the book. They can be a Buyer or a Seller. A taker is the person who matches with the maker and therefore takes value out of the Orderbook.

You can think of a Maker as somebody providing liquidity, therefore they usually get a lower fee.

Why are the fees always 0.5% in the UI?

We label it as 0.5% in the UI because we can't be sure before a trade which one you will get. Somebody might be creating an opposite order just before you submit your transactions.

You can guarantee you are a Maker by creating your order far away from the current price.

Why does it cost 0.5 ALPH for a transaction?

Gas 0.1 ALPH is for gas, although this won't all be used. You won't normally spend the max gas and we can change this number in the UI. You will just spend as much gas as you need and the rest will be sent back. Temporary storage These costs are part of the Alephium protocol and are design to give a cost for using on-chain storage.

1. 0.1 ALPH for creating a price point

2. 0.1 ALPH for your place in the queue at that price

3. 0.1 ALPH for your actual Order object

4. 0.1 ALPH inserting you Order into the OrderMap

If the price point already exists then you won't pay for 1. and it will be sent straight back. The remaining 0.3 ALPH will be sent back once somebody matches with your order or if you cancel the order.

How do I know the price of an asset on a decentralised order book?

The supply and demand for that asset determine the purchase price on a decentralised order book. The price will tend to increase when there are more buyers than sellers. When there are more sellers than buyers, the price will tend to decrease.

When I switch to a token and it does not set a suggested price automatically?

The price is just taken from the last completed trade. If there are no completed trades then there is no price.

What is a decentralised order book?

In a decentralised order book, users can place buy or sell orders for a particular asset at a specific price. These orders are recorded on the blockchain and stored in the order book. When a match is found between a buy and sell order, the trade is executed, and the asset is transferred from the seller to the buyer.

What are the benefits of using a decentralised order book?

There are several benefits to using a decentralised order book, including:

Increased security: Because a single entity does not control a decentralised order book, it is less vulnerable to hacking or tampering.

Greater transparency: All orders and trades are recorded on the blockchain, making it easy to see the entire history of the order book.

Reduced fees: Because decentralised order books do not require intermediaries to facilitate trades, costs are typically lower than those of traditional exchanges.

What are the risks of using a decentralised order book?

There are also risks to using a decentralised order book, including:

Volatility: The prices of assets on a decentralised order book can be more volatile than those on traditional exchanges, as there is often less liquidity.

Can I place both buy and sell orders on a decentralised order book?

You can place buy and sell orders on a decentralised order book. When you place a buy order, you indicate that you want to purchase a particular asset at a specific price. When you place a sell order, you say you want to sell an asset at a particular price. If a match is found between a buy and sell order, the trade will be executed, and the purchase will be transferred from the seller to the buyer.