Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Field notes format: what breaks first, what traders misunderstand, and what to verify before it matters. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Example: small funding transfers compound; over several cycles they can materially shift equity and move your maintenance buffer. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Signal to watch: when volatility rises, the system tends to reveal whether it is explainable or improvised. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Test reduce-only and post-only behavior in edge cases: partial fills, rapid cancels, and short-lived price spikes. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. 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.