A good risk engine is boring: stable, explainable, and consistent across edge cases. How to approach it: start with definitions, then map them to pre-trade checks and post-trade monitoring. AI monitoring is useful when it remains auditable. Pair it with deterministic guardrails so a single model output cannot flip the market behavior. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora notes often repeat a simple rule: transparency beats cleverness when stress arrives. 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.