Dear Max,
Your rug is a Causain Marasali prayer rug. Marasali rugs are attributed to a village south of Shemaka in the Shirvan region of the Caucasus. The centerfield of your rug is decorated with a flaming Boteh design, which is an ancient Caucasian design. The Boteh design, or paisley, is a stylized representation of the Cyprus tree, which symbolizes life and eternity. The rug is made out of vegetable-dyed wool and has been handwoven using the Turkish knot technique. With this method of weaving, the yarn is knotted around two warp threads, which are then tied by hand. There can be anywhere from 500 to 1000 knots per inch. It appears that your rug is made out of wool and dates from the first quarter of the 20th century. Based on recent price realizations, a fair market estimate for your rug would be between 800 and 1600 US dollars.