Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Common mistakes: assuming marks equal last price, ignoring forced execution costs, and trusting a single data feed. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. Another mistake: optimizing leverage while ignoring liquidity. Liquidity vanishes first, leverage magnifies the damage. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. 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. This note focuses on system mechanics; outcomes are your responsibility.
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.