Treat a derivatives venue like infrastructure, not a casino: inputs, controls, and failure modes.
Concept first: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk. Operational failures often look like market losses. Log your requests and monitor throttling so you know what changed.
Edge cases: Funding is a transfer between traders, but timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits.
Checklist: Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves. Example: doubling size in a thin book can more than double slippage because depth is not linear near top levels. If you automate, use scoped API keys, IP allow-lists, and exponential backoff. Limits often tighten exactly when volatility rises.
Final sanity check: Pitfall: assuming mark price equals last price. In stress, they diverge, and liquidation triggers can surprise you.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. Derivatives are risky; test assumptions before you scale size.
Concept first: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk. Operational failures often look like market losses. Log your requests and monitor throttling so you know what changed.
Edge cases: Funding is a transfer between traders, but timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits.
Checklist: Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves. Example: doubling size in a thin book can more than double slippage because depth is not linear near top levels. If you automate, use scoped API keys, IP allow-lists, and exponential backoff. Limits often tighten exactly when volatility rises.
Final sanity check: Pitfall: assuming mark price equals last price. In stress, they diverge, and liquidation triggers can surprise you.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. 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.