The mass-exchange picture in the close binary AE Aqr is discussed in the fr
ame of the pulsar-like white dwarf model (Ikhsanov 1998, 1999). It is shown
that within this approach a dead disk around the white dwarf magnetosphere
is expected. The disk forms during (and/or just after) the outburst associ
ated with the white dwarf spin-up --> spin-down state transition. In the cu
rrent epoch the inner and the outer radii of the disk are evaluated as 5.5
x 10(10) cm and 8 x 10(10) cm, respectively, and the average mass-exchange
rate in the system is 4.4 x 10(16) g s(-1). About a half of the accretion e
nergy is released in the boundary layer at the inner edge of the disk in th
e optical-UV (about 80%) and soft X-ray (about 20%) spectral domains. The m
ass exchange between the components is governed by the stream-fed mechanism
of mass transfer through the L-1 point. The plasma inflowing from the seco
ndary interacts with the outer edge of the dead disk and streams out from t
he system mainly at phases 0.25 divided by 0.75. The velocity of outflowing
plasma in quiescence lies within the interval 380 divided by 550 km s(-1)
and its temperature is about 10(4) K. The other parts of the dead disk are
relatively cool similar to (2 divided by 3) x 10(3) K and contribute to the
system radiation in the IR spectral region.