People talk about AI as if it is magic, but contract trading systems still live or die on definitions and controls. Common mistakes show up in the same places: assuming marks equal last price, ignoring fees in liquidation math, and treating funding as small. Liquidation is not a single event; it is a path. Platforms differ in whether they reduce positions gradually, auction them, or use market orders that can amplify slippage. Mistake to avoid: optimizing leverage while ignoring book depth. Liquidity vanishes first, and leverage just amplifies the damage. Treat cross margin like a portfolio: correlations matter. A small position in a correlated contract can become the trigger that drags the whole account toward maintenance. Example: a 25x position with a 0.06% taker fee can lose more than a full maintenance step from fees alone if forced to close during a fast move. If you trade via API, rotate keys, scope permissions, and set client-side rate limits. Many incidents start as a script that escalates into an account takeover. Data quality is a risk control. Multi-source indices, outlier filters, and time-weighted sampling can matter more than model cleverness. Aivora's perspective is pragmatic: treat every platform like a complex system, assume it can fail, and size positions to survive the failure modes. Nothing here is financial advice; it is a mechanics-first checklist meant 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.