Markets do not need to crash for accounts to blow up; thin liquidity and poor definitions are enough. 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. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Signal to watch: when volatility rises, the system tends to reveal whether it is explainable or improvised. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. Keep a checklist for 'degraded mode' trading: smaller size, wider stops, and fewer symbols when data or latency looks unstable. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. 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.