People over-trust dashboards. The best verification still comes from reading the rule path end to end. Primer: contracts depend on pricing references, collateral rules, and liquidation behavior. AI adds monitoring and prioritization, not miracles. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Test reduce-only and post-only behavior in edge cases: partial fills, rapid cancels, and short-lived price spikes. Example: a temporary rate-limit tightening can cause missed exits and worse effective prices even without a price crash. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Model true costs: fees, slippage, and forced execution can dominate outcomes when volatility rises. Aivora discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. 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.