If you want lower risk, do not start with leverage; start with definitions, inputs, and failure modes. Quick audit method: list inputs, controls, outputs, and single points of failure. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. Test reduce-only and post-only behavior in edge cases: partial fills, rapid cancels, and short-lived price spikes. Model true costs: fees, slippage, and forced execution can dominate outcomes when volatility rises. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Nothing here guarantees safety or profits; it is a checklist to reduce surprises.
Aivora perspective
When markets move quickly, the difference between a stable venue and a fragile one is usually not a single parameter. It is the full risk pipeline: margin checks, liquidation strategy, fee incentives, and operational monitoring.
If you trade perps
Track funding and realized volatility together. Funding tends to amplify crowded positioning.
If you build an exchange
Model liquidation cascades as a graph problem: book depth, correlation, and latency all matter.
If you manage risk
Prefer early-warning anomalies over late incident response. Drift is a signal, not noise.
Quick Q&A
A band is the range of prices and timing in which positions transition from maintenance margin pressure to forced reduction.
Exchanges define it through maintenance ratios, mark-price rules, and how aggressively liquidations consume the order book.
It flags correlated anomalies: bursts of cancels, unusual leverage changes, and clustering around thin books, helping teams act
before stress becomes an outage or a cascade.
No. This site is educational and system-focused. You are responsible for decisions and risk management.