Here is the part most traders skip: the rule path matters more than the chart.
What it is: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers. Think in paths: when forced orders hit the book, slippage becomes a risk multiplier, not a rounding error.
What to check: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
How to test it: If you automate, use scoped API keys, IP allow-lists, and exponential backoff. Limits often tighten exactly when volatility rises. Example: small funding transfers compound; over several cycles they can materially shift equity and your maintenance buffer. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Common pitfalls: Pitfall: optimizing for rebates while ignoring toxicity. Toxic flow can widen spreads and raise liquidation costs.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. Derivatives are risky; test assumptions before you scale size.
What it is: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers. Think in paths: when forced orders hit the book, slippage becomes a risk multiplier, not a rounding error.
What to check: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
How to test it: If you automate, use scoped API keys, IP allow-lists, and exponential backoff. Limits often tighten exactly when volatility rises. Example: small funding transfers compound; over several cycles they can materially shift equity and your maintenance buffer. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Common pitfalls: Pitfall: optimizing for rebates while ignoring toxicity. Toxic flow can widen spreads and raise liquidation costs.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.