Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. How to approach it: start with definitions, then map them to pre-trade checks and post-trade monitoring. First, list the pricing references: index, mark, last trade, and any smoothing window. Then locate which reference drives margin checks. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. 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.