If a venue cannot explain a control, you cannot manage the risk it creates. Implementation notes: treat the risk pipeline like software. Define inputs, version rules, and measure drift. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Design for failure: stale feeds, sudden volatility, and latency spikes should trigger predictable safe modes. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. 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.