If a futures platform feels 'random' under stress, the randomness is usually in definitions and fallbacks.
What it is: Fee design is part of risk: forced execution costs can reduce your liquidation distance, and rebates can attract toxic flow that degrades fills. ADL typically appears only after the insurance buffer is stressed. Look for disclosure and predictable ranking rules.
What to check: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk.
How to test it: Prefer smaller order slices before changing leverage. Size reductions often cut slippage more than a leverage tweak. Example: a temporary rate-limit tightening can cause missed exits and worse fills even without a dramatic price crash. Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves.
Common pitfalls: Pitfall: overusing cross margin without correlation thinking. Portfolio coupling can turn a hedge into a trigger.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. This is educational content about mechanics, not financial advice.
What it is: Fee design is part of risk: forced execution costs can reduce your liquidation distance, and rebates can attract toxic flow that degrades fills. ADL typically appears only after the insurance buffer is stressed. Look for disclosure and predictable ranking rules.
What to check: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk.
How to test it: Prefer smaller order slices before changing leverage. Size reductions often cut slippage more than a leverage tweak. Example: a temporary rate-limit tightening can cause missed exits and worse fills even without a dramatic price crash. Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves.
Common pitfalls: Pitfall: overusing cross margin without correlation thinking. Portfolio coupling can turn a hedge into a trigger.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. This is educational content about mechanics, not financial advice.
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.