If a venue cannot explain a control, you cannot manage the risk it creates. Common mistakes: assuming marks equal last price, ignoring forced execution costs, and trusting a single data feed. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Another mistake: optimizing leverage while ignoring liquidity. Liquidity vanishes first, leverage magnifies the damage. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Execution quality is a risk control. When latency rises, assume worse fills and rebuild your sizing plan. Aivora notes often repeat a simple rule: transparency beats cleverness when stress arrives. This is educational content about mechanics, not financial advice.
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.