AFX Trade Tutorial: How To Use The Decentralized Exchange 

 

 

AFX Trade is a decentralized crypto exchange designed for perpetual futures trading. Unlike other DEXs, it does not combine spot and futures trading, which means users cannot hold assets on the exchange. To trade, you must connect your Web3 wallet to the exchange. This makes AFX Trade attractive for users looking for decentralized and no-KYC trading alternatives.

 

Lately, many decentralized exchanges have been linked to centralized control, which calls for a truly decentralized platform where users' asset management is not concentrated in the hands of a few centralized entities. For instance, Apex Omni is backed by Bybit, a leading centralized exchange in the space. AFX Trade is similar to Hyperliquid in this regard because it was built by real community users without VC support or private investors. 

 

Though a recently launched platform, AFX Trade has gained thousands of active traders. For early users, the platform offers an ongoing crypto reward, where users can participate in testnet activities or join the mainnet point program to accumulate points and convert the points at TGE

 

Beyond reward, AFX Trade offers unique trading features like a trading fee bonus, a truly decentralized vault system for passive income seekers, and a secured DeFi infrastructure.

 

Yet to decide if trading on AFX Trade is for you? Check out our previous post on the best decentralized exchanges to compare other available DEXs before you start trading. 

 

Ready to earn a free crypto bonus? Try the AFX Trade 

 

What Is AFX Trade?

 

AFX Trade is a decentralized exchange built on its own Layer-1 blockchain to increase users’ access to decentralized perpetual trading. In the past, futures trading on DEXs was significantly low due to constant MEV attacks and high slippage. However, the launch of platforms like AFX Trade is designed to change this by introducing a system that protects users’ funds and trading activities. 

 

AFX Trade combines an off-chain order matching system with on-chain settlement. This approach ensures that transactions are completed within seconds and provides a good level of transparency into trading activities on the exchange. Additionally, the exchange features its own network explorer, where traders can easily track trading activities.

 

AFX Trade outperforms other DEXs in the leverage tier. Unlike Hyperliquid and Apex Omni, which offer 40x and 50x leverage, respectively. AFX Trade offers up to 100x leverage. This makes it an ideal platform for traders with a high risk appetite and a good understanding of how asset liquidation works with leverage. 

 

If you are just getting started, see our previous article on how to avoid liquidation in crypto futures before using high leverage. 

 

Though AFX Trade comes with notable features we’ll discuss soon, keep in mind that it is a new platform. This means that the infrastructure is new and has not been tested for performance, security, and price accuracy. However, the exchange is designed with core infrastructure to provide asset security and eliminate price manipulation. 

 

Why Choose AFX Trade?
 

Here are 5 reasons you should consider trying the AFX Trade: 

 

• High leverage and multi-asset support: Access up to 100x leverage. Though the list is growing, the exchange currently allows traders to actively trade only nine assets - BTC, ETH, SOL, XRP, BNB, LINK, DOGE, XAU, XAG.
   
• Built on its own L1 Chain: This is a good deal for security and scalability. Given that AFX Trade relies on its own Layer-1 chain, the AFX Chain, we expect it to feature enhanced security and low execution time. 
   
• Battle-tested Infrastructure: The AFX Trade team has been building since 2018, relying on bug reports and users' suggestions to improve performance and eliminate system breaches.
   
• On-chain Transparency: It features an on-chain explorer that allows traders to track trading across all wallets 
   
• Price Manipulation Resistant: AFX Trade combines an on-chain orderbook with multiple oracle feeds to generate an accurate price for every asset, prevent price manipulation, and forceful liquidation.

 

AFX Trade Features

 

 

Safety Tip for Beginners in Crypto Trading

 

When interacting with a new platform, it is important to keep these safety tips in mind. This is to protect your funds and prevent exposure to scams, wallet breaches, or rug pulls.
 

• Create a new web3 wallet to use: We do not recommend connecting your main wallet to a new exchange or platform, particularly if you keep your crypto assets on that wallet. To secure your existing assets, create a new web3 wallet in 5 minutes to connect.
   
• Reduce financial exposure: Participating in a new project as an early user is a good way to earn rewards in the crypto space; however, it also exposes you to significant financial risk. We recommend limiting your financial exposure to a minimum. 
   
• DYOR: Always do your own research on a new project to discover necessary information like how the platform operates, how the bonus works, and the founders or project developers before participating in an ongoing bonus. 

 

Step-by-step guide on using AFX Trade 

 

Creating an account 

• Visit the official AFX Trade website and click 'Connect.' 
• In the pop-up options, enter your email address 
• Now, check the ‘terms and conditions’ box, then click on ‘Next.’
• AFX Trade will send a login to your email
• Enter the code on the link to log in automatically

With this, AFX Trade creates a unique wallet address for you. 
 

Connect Wallet (e.g., MetaMask)

• Visit the AFX Trade website and click 'Connect.'
• On the pop-up page, click on ‘Metamask’ or 'Wallet Connect' and scan the code displayed with your phone, or click on “More Wallets” to select any other decentralized wallet.
• This will automatically open your MetaMask wallet.
• Read the next instruction properly to be sure you are connecting to AFX Trade, then click on ‘Connect’ to accept the connection request.
• Now, go back to the AFX Trade platform to check the terms of use and cookie policy boxes. 
• Click on ‘Accept’ to agree with the policy.
• Finally, go back to your Metamask wallet, read the sign-in request, then click on ‘Confirm to start trading. ’

Note: To use this option on your PC, you need to already have the wallet extension or app on your computer. You can easily download and set up a wallet extension on your preferred app store.
 

Depositing funds 

With AFX Trade on the mainnet, follow these steps to add funds to the exchange via the Arbitrum blockchain for trading. 

• Confirm that you have sufficient assets to meet the minimum deposit and enough native tokens to cover the gas fee.
• Click on 'Deposit'
• Select the Asset type and blockchain. Note that AFX Trade currently supports only USDC on the Arbitrum blockchain.
• Enter the amount you want to deposit
• Click on 'Deposit Funds'

If you created an account, you can deposit crypto assets directly from any exchange or wallet by following these steps.  

• Copy the wallet address to send the crypto asset directly to the exchange from any wallet or exchange.
• When using this option, note that AFX Trade currently supports only USDC on the Arbitrum blockchain. Therefore, sending other crypto assets or sending USDC through a different blockchain will result in loss of funds. 

Once the transaction is confirmed, the funds will be deposited into your account, where you can use them to trade directly. This process takes between 1 and 2 minutes. 

 

Placing a Trade

 

• On the AFX Trade interface, click on 'Enable Trading.'
• Select the trading pair you want to trade, e.g., BTCUSDC
• Select order type. Eg, limit or market 
• Set your margin type. Eg, cross or isolated
• Set your leverage (Max leverage is 100x)
• Input the amount you want to trade with (This is your margin)
• Set Take Profit and Stop Loss prices
• Select either ‘Long or Short’ as the position type
• The trade will appear in 'Open positions.' 

Quick Tip for Beginners: Use long when you expect the asset price to increase (pump) or use short when you expect the asset price to fall (dump).

 

Withdrawing Funds 

Withdrawing your assets on AFX Trade is expected to take a maximum of 5 minutes, depending on network conditions. Note that you must connect your decentralized wallet, i.e, MetaMask, to the exchange to facilitate withdrawal.

• Connect your wallet to the AFX Trade interface 
• On the trading interface, click on ‘Withdraw.’ 
• Enter withdrawal amount. Note that you can withdraw a minimum of 10 USDC
• Review transaction details to be sure you are withdrawing assets to the right blockchain, which should be Arbitrum Chain.
• Confirm and click on ‘Withdraw.’

 

AFX Trade Fees Explained

 

Perpetual Futures Trading Fees: 0.01%  Maker Fee/ 0.06% Taker Fee
 

Compared to popular exchanges like Apex Omni or Hyperliquid, AFX Trade has a lower maker fee; however, the taker fee is a little higher than what popular exchanges like Hyperliquid, Apex Omni, and AsterDEX apply. 

 

However, it is important to note that the exchange is designed with a VIP schedule that provides users with significant fee discounts when the platform moves to the mainnet. 

 

 

Aside from the VIP fee discount, VIP users can also enjoy rewards on their trading fees. AFX Trade put 30%–50% of its trading-fee revenue into a VIP reward pool. Funds in this pool is distributed back to VIP users based on their taker volume. 

 

Once you complete 5 million taker trading volume within 30 days, you automatically qualify for the VIP 1 discount and the trading fees reward. 

 

Is AFX Trade Safe?

 

To determine if AFX Trade is safe, we need to consider the necessary factors that may contribute to the loss of funds on the exchange. These include the AFX security model, system infrastructure, and leverage.

 

• Security model: AFX Trade combines multiple risk control mechanisms to protect users' funds. It runs on a secure Layer-1 blockchain to prevent system breaches and third-party risks. Additionally, it includes features like tiered margin, multi-stage liquidation, and a liquidity vault to support smooth trading, reduce slippage, and manage liquidation events. 
  
  However, in extreme market conditions, the system may trigger Auto-Deleveraging (ADL). This is a built-in feature designed to protect the exchange from total solvency and keep the platform stable. ADL automatically closes winning trades when high use of leverage exposes the platform to unbearable losses. Traders receive the realised profit or loss but may not capture their full expected profit.

 

• High leverage: Using high leverage exposes traders to a high risk of liquidation. For example, if you trade with $100 with a 100x leverage, the exchange opens a 10,000 position for you. This means that if the asset price moves against you by only 1%, you will be fully liquidated. For beginners, it is recommended to use between 2x and 5x leverage to protect funds and reduce risk exposure. 

 

AFX Trade Promotion Bonus and Affiliate Link

 

AFX Trade recently completed its testnet bonus with over 1,000 active users, leaving users with two ways to earn crypto bonuses on the exchange. These are the affiliate program and the AFX Trade mainnet point program.   
 

Currently, any user can generate an affiliate link to earn commission on the invited traders’ fees. To do this, you need to achieve at least 10,000.00 USDC trading volume. Users earn a total of 40% lifetime reward from this. You get up to 35% commission from your direct referrals, and earn 5% commission from users invited by your downlines. 

 

 

Additionally, you can participate in the season 1 mainnet point program to earn points. Points are automatically claimed and sent to the user's wallet. You can start accumulating points the moment you connect your wallet to the exchange and start trading. Additionally, users accumulate points when they deposit funds into the exchange liquidity provider vault. 

 

AFX Trade introduces the Guild system as the third earning option. With this, users can create a Guild and invite other users to join. A Guild reward is calculated based on the total trading volume of all the members in the Guild. Only the top 50 Guilds earn points weekly. 
 

Connect your wallet to AFX Trade to start earning rewards and generate your referral link.

 

How to Earn Passive Income on AFX Trade

 

Most decentralized exchanges provide users with opportunities to earn passive income through Vaults. You can access this on Hyperliquid, AsterDEX, and AFX Trade. This is useful for traders with low risk appetite or little trading experience. However, before depositing funds into a vault, you should know how it works, what the vault does, and how rewards are shared. 

 

Types of Vaults on AFX Trade

 

AFX Trade offers two types of vault: 

• LP Vault (ALP): This is a liquidity provision vault that handles market making and liquidation takeover on the exchange. The LP vault is managed by the exchange and it does not attract management fees. Therefore, 100% of the reward goes back to the depositors.  
• User Vaults: This is an individual-created vault that is managed by the vault owner to execute trades. To create a vault, you need to pay a 100 USDC vault creation fee and also deposit at least 100 USDC into the vault.  Other users can deposit funds into the vault for passive rewards. Unlike LP vaults, profit earned in a user vault is shared between the vault leader and other depositors. The vault leader gets 10%, while the remaining 90% is shared among all depositors.

 

How AFX Trade Vault Works

The AFX Trade vault uses smart contracts to automate all activities, such as holding deposited funds, minting and burning shares, calculating the current net asset value held in the vault, and distributing profits to users. 

 

When you deposit funds into a vault, you receive shares, which represent the value of the asset you added. The shares increase as the total assets held in the vault increase. To withdraw, you simply redeem your shares for USDC at the current value. The system automatically burn the redeemed shares. 

 

Depositing and withdrawing funds from the vault is gas-free; however, withdrawal comes with a lock-up period. On the LP vault, the lock-up period is 4 days, which means you can only withdraw funds 4 days after. 

 

How to Deposit or Withdraw Funds from a Vault

• Step 1: Connect your web3 wallet or log in to AFX Trade
• Step 2: Now, click on Vault on the main dashboard
• Step 3: On the vault dashboard, click on ‘deposit’ or ‘withdraw’
• Step 4: Now, input the amount you want to add or withdraw from the vault

 

AFX Trade Compared to Other DEXs

 

 

If you want to try perpetual futures trading on a leading DEX, check out our guide to one of the best decentralized exchanges in the space. This Apex Omni tutorial provides a detailed guide on how to execute trades and reduce trading fees on Apex Omni.

 

Final Thought: Is AFX Trade Worth Trying?

 

If you love to earn crypto bonuses, AFX Trade allows you to earn rewards from trading, depositing funds into a vault or joining a guild. This means that you can still earn good rewards without excessive trading. However, the trading reward is also suitable for advanced traders with good trading skills or beginners who are interested in learning futures trading on a scalable platform. 

Finally, though AFX Trade is a new platform, it has gradually gained attention among users, which shows that it has great potential for a solid perpetual futures trading platform. From its security infrastructure to expected speed and a crypto vault mechanism, the exchange is prepared to serve professional traders at different levels. However, access to low-cap altcoins may be restricted as the exchange is new in the space and is yet to list most assets.

 

Hyperliquid and AsterDEX are good alternatives to AFX Trade if you want to access more trading pairs and deeper liquidity for a broad trading experience. Check out our Hyperliquid tutorial or AsterDEX tutorial to get started. 

 

Frequently Asked Questions

 

Is AFX Trade a Decentralized or Centralized Exchange?

AFX Trade is a decentralized cryptocurrency exchange designed specifically for perpetual futures trading. This means users can trade crypto assets directly on the exchange using leverage.

 

Can Withdraw Funds From the AFX Trade Vault Immediately?

Withdrawal from AFX Trade vaults is free and instant; however, it comes with a 4-day lock-up period, which means users cannot withdraw funds in the first four days after deposit, but they can withdraw 4 days. 

 

How Can I Earn Free Points on AFX Trade?

Points on AFX Trade are not free; they are rewards designed for users on the platform. You can earn points by trading, adding funds into a vault or joining a guild. Your points will be converted to AFX Trade governance token at the Token Generation Event (TGE).

 

Connect your wallet to AFX Trade now to start earning rewards