> For the complete documentation index, see [llms.txt](https://docs.megatao.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.megatao.com/readme/megatao-101.md).

# MegaTAO 101

## What is MegaTAO?

MegaTAO is a perpetual futures DEX on Bittensor EVM. It allows leveraged trading on Bittensor Alpha token prices using TAO as collateral.

## How it works

1. Connect your wallet to [megatao.com](https://megatao.com)
2. Deposit TAO as margin
3. Open a position (long or short) on an Alpha token with your chosen leverage
4. The protocol vault fills your order instantly
5. Funding payments accrue based on market imbalance between longs and shorts
6. Close the position when ready and realize your P\&L in TAO

## Key Properties

| Property     | Detail                               |
| ------------ | ------------------------------------ |
| Collateral   | Native TAO                           |
| Max leverage | 3x                                   |
| Markets      | 12 Alpha tokens                      |
| Settlement   | All P\&L in TAO                      |
| Liquidity    | Order book matching + protocol vault |
| Pricing      | On-chain oracle from pool reserves   |
| Chain        | Bittensor EVM (Chain ID: 964)        |

## Architecture

{% @mermaid/diagram content="graph TD
A\[Trader] --> FUTURES
F\[Keeper] --> FUTURES

```
subgraph BP["<b>Bittensor Protocol</b>"]
    direction LR
    E[Alpha Token Pools] -->|reserve data| ORACLE

    subgraph EVM["<b>Bittensor EVM</b>"]
        direction TB
        ORACLE[Price Oracle] --> FUTURES[Futures Contract]
        C[Protocol Vault] <--> FUTURES
    end
end" %}
```

The protocol consists of the **Futures Contract** (core trading logic), a **Price Oracle** (on-chain price feeds from pool reserves), a **Protocol Vault** (counterparty liquidity), and a **Keeper** (automated liquidations). All contracts run on Bittensor EVM.

## Documentation

| Section                                                                      | Description                                    |
| ---------------------------------------------------------------------------- | ---------------------------------------------- |
| [Onboarding](/onboarding.md)                                                 | Connect your wallet and make your first trade  |
| [MegaTAO Core](/core.md)                                                     | Alpha tokens, vault, and protocol mechanics    |
| [Trading](/trading.md)                                                       | Perpetual futures, funding, liquidations, fees |
| [Security & Audits](/audits.md)                                              | Audit reports and smart contract security      |
| [Support](https://github.com/mega-tao/docs/blob/feat/docs/support/README.md) | FAQ and contact information                    |