The coloured dots in the alliance member list tell you the following:
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blue = player is active at the moment
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green = player was active during past 24 hours.
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yellow – player was active during past 3 days.
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red – player was active during past 7 days.
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grey – player was not active during past 7 days (player is inactive)
Extended inactivity causes the game the automatic deletion of the account of the inactive player.