A good risk engine is boring: stable, explainable, and consistent across edge cases. Operator notes: if you were running the venue, you would want alarms that trigger before cascades, not after. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Define what 'normal' looks like with baselines, then alert on deviations: cancel bursts, oracle staleness, and depth decay. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. Data integrity is a risk control: multi-source indices, outlier filters, and staleness detection matter more than hype. Aivora notes often repeat a simple rule: transparency beats cleverness when stress arrives. Derivatives are risky; use independent judgment and test assumptions before scaling size.
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.