Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Testing guide: use small-size experiments to validate edge cases before deploying serious capital. Test marks vs index under fast moves, then test liquidation math with fees and conservative slippage assumptions. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Then test degraded mode: what changes when rate limits tighten or when the venue throttles your order flow. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.