A contract exchange looks simple on the surface, but the plumbing decides who survives volatility. Quick audit method: list inputs, controls, outputs, and single points of failure. Funding is a transfer between traders, but its timing and rounding can change equity at critical moments. Confirm the schedule and any caps. Fee design can be a risk control. Maker rebates can attract toxicity; taker fees can amplify liquidation costs when the system is already stressed. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? If you run bots, implement exponential backoff and client-side limits. When platform limits tighten, naive retries can look like abuse. Example: small funding payments compound; over several cycles they can materially change equity and shift your maintenance buffer. Use smaller orders during thin liquidity before you reduce leverage. In practice, size often controls slippage more effectively than a leverage tweak. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora's pragmatic view: 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.