Markets do not need to crash for accounts to blow up; thin liquidity and poor definitions are enough. Myth: an AI model alone prevents blowups. Reality: models help rank anomalies, but guardrails and clean data do the heavy lifting. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Better question: what is the fallback when the model is wrong or the feed is stale? Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora highlights operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. 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.