If a futures platform feels 'random' under stress, the randomness is usually in definitions and fallbacks.
Quick definition: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
Why it matters: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
How to verify: Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves. Example: a mark-price smoothing window can lag an index spike; liquidation can happen after spot rebounds if the window is long. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Practical habit: Pitfall: assuming mark price equals last price. In stress, they diverge, and liquidation triggers can surprise you.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. This note is about system mechanics; outcomes are your responsibility.
Quick definition: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
Why it matters: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
How to verify: Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves. Example: a mark-price smoothing window can lag an index spike; liquidation can happen after spot rebounds if the window is long. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Practical habit: Pitfall: assuming mark price equals last price. In stress, they diverge, and liquidation triggers can surprise you.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. This note is about 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.