Most platform comparisons stop at fees, but execution and liquidation behavior decide the real cost.
The mechanism: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers. ADL typically appears only after the insurance buffer is stressed. Look for disclosure and predictable ranking rules.
Where it breaks: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
A simple test: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Run a small-size rehearsal when liquidity is thin. Observe how stop orders trigger and how mark/last prices diverge around spikes.
What to do next: Pitfall: assuming mark price equals last price. In stress, they diverge, and liquidation triggers can surprise you.
In Aivora notes, transparency beats cleverness when markets get loud. Derivatives are risky; test assumptions before you scale size.
The mechanism: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers. ADL typically appears only after the insurance buffer is stressed. Look for disclosure and predictable ranking rules.
Where it breaks: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
A simple test: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Run a small-size rehearsal when liquidity is thin. Observe how stop orders trigger and how mark/last prices diverge around spikes.
What to do next: Pitfall: assuming mark price equals last price. In stress, they diverge, and liquidation triggers can surprise you.
In Aivora notes, transparency beats cleverness when markets get loud. Derivatives are risky; test assumptions before you scale size.
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.