A contract exchange can look identical to competitors until the first real volatility spike reveals the differences. Quick audit method: list inputs, controls, outputs, and single points of failure. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but needs stricter sizing. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.