If a venue cannot explain a control, you cannot manage the risk it creates. Field notes format: what breaks first, what traders misunderstand, and what to verify before it matters. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. AI monitoring is useful when it remains auditable. Pair it with deterministic guardrails so a single model output cannot flip the market behavior. Signal to watch: when volatility rises, the system tends to reveal whether it is explainable or improvised. Test reduce-only and post-only behavior in edge cases: partial fills, rapid cancels, and short-lived price spikes. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. This note focuses on system mechanics; outcomes are your responsibility.
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.