VTF/VMT Problems

Hello so ive got a custom vtf that is used when a person starts typing in game. This is what its mean to look like.
Dots (1)

but this is what it looks like in game


Here is my VMT file.

   "$basetexture" "pos/gif/typing"
   "$vertexcolor" 		1 
   "$vertexalpha" 		1 
   "$nolod" 		        1
   "$translucent"		1
         "animatedtexturevar" "$basetexture"
         "animatedtextureframenumvar" "$frame"
         "animatedtextureframerate" "3"

Any help would be great!