The biggest edge is not a secret indicator; it is knowing what the system will do under stress. Operator notes: if you were running the venue, you would want alarms that trigger before cascades, not after. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Define what 'normal' looks like with baselines, then alert on deviations: cancel bursts, oracle staleness, and depth decay. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Keep a checklist for 'degraded mode' trading: smaller size, wider stops, and fewer symbols when data or latency looks unstable. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Derivatives are risky; use independent judgment and test assumptions before scaling 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.