> ## Documentation Index
> Fetch the complete documentation index at: https://docs.qu.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# QUAI ↔ QI Conversions in Pelagus

> Learn how to convert between QUAI and QI using the Market Make feature in the Pelagus Wallet.

# How QUAI ↔ QI Conversions Work in the Pelagus Wallet (Market Make)

Starting **April 16, 2025**, you’ll be able to convert between **QUAI** and **QI** directly inside the [Pelagus](https://pelaguswallet.io) wallet through an advanced feature called **Market Make**.

Whether you're mining QI and want to swap to QUAI, or holding QUAI and want to convert into QI, this guide walks you through how Market Make works — including how **slippage**, **prime blocks**, and **token lockups** come into play.

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## What is Market Make?

**Market Make** is Pelagus' advanced on-chain conversion feature that lets you exchange **QUAI ↔ QI**.

When you initiate a Market Make, you're submitting a special transaction to the Quai blockchain. It will execute during the **next prime block**—**if** your conditions are met.

***

## Step-by-Step: How Market Make Works

### 1. Start a Market Make Conversion

In the Pelagus wallet:

* Open the **Market Make** feature
* Choose your conversion direction (**QUAI → QI** or **QI → QUAI**)
* Enter the **amount**
* View the **current estimated slip**
* Set a **maximum slippage threshold** (e.g., `1.5%`)

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### 2. Transaction Goes to Conversion Pool

Your Market Make transaction is submitted to the **Quai chain** and enters the **conversion pool**, where it waits for the **next prime block**.

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### 3. Slippage May Change Before Finalization

> ⚠️  *Every conversion transaction will incur a 20 basis point slip*

During this waiting period:

* Other users may submit conversions
* **Total conversion pool volume increases**
* Result: **Slippage may increase dynamically**, especially during spikes in demand

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### 4. What Happens at the Prime Block?

* **If final slippage ≤ your slippage threshold**:
  * Your conversion **succeeds**
  * You receive the **target asset (Qi or Quai)**
  * The output is **locked for 2 weeks**

* **If final slippage > your slippage threshold**:
  * Your conversion **fails**
  * But:
    * The transaction still executes on-chain
    * If converting **Qi → Quai**, your funds may be **aggregated**
    * After 2 weeks, you receive the **original asset** back

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## What Is Slippage?

**Slippage** is the difference between the **expected** and **actual** conversion rate, driven by conversion volume changes in the conversion pool.

* Displayed at submission time
* **Not locked in** until the prime block
* Users set their **max slippage tolerance**
* **Higher conversion pool volume** = greater chance of slippage increasing

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## 2-Week Lockup Applies to All Completed Transactions

Whether your transaction **succeeds or fails**:

* The output (QI or QUAI) is **locked for 2 weeks**
* This maintains system stability and prevents liquidity disruptions

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## Key Things to Know

| Concept           | Details                                                                |
| ----------------- | ---------------------------------------------------------------------- |
| Timing            | Conversions settle at the **next prime block**, not instantly          |
| Slippage          | You define your **maximum acceptable slippage** at submission          |
| Slippage Behavior | Slip increases with **rising conversion pool volume**                  |
| Success Criteria  | Final slippage must be **≤ your threshold**                            |
| Failed Converts   | Receive **original asset**, locked 2 weeks, may be **aggregated** (QI) |
| Lockup Period     | All output tokens are **locked for 2 weeks**                           |

***

## Example: Market Make in Action

You want to convert **5,000 QUAI into QI**.

* You submit the Market Make with a **1.5% slippage threshold**
* At submission, current slippage is **0.7%**
* Other users then submit **100,000 Quai** in conversions before the next prime block
* Final slippage = **2.1%**

### Result:

* Your transaction **fails**
* You receive your **original 5,000 QUAI back**

> **💡 Pro Tip**\
> To increase your chance of success:
>
> * Choose a **reasonable slippage threshold** based on recent volume trends
> * **Submit your transaction shortly after a prime block**, when the conversion pool volume has reset
>
> For more information on the relationship between QUAI and QI see our [blog post](https://qu.ai/blog/maximizing-mining-strategy-in-quai-network-choosing-between-quai-and-qi-tokens/) on the topic.

***

Need help or want to dive deeper? [Visit the Pelagus documentation](https://pelaguswallet.io/docs/) or join the Quai Discord to chat with the community.