AI can help rank anomalies, but it cannot replace clear rules you can audit.
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. Funding is not a fee to the exchange; it is a transfer. The schedule and caps matter more than the headline number.
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: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Compute liquidation price twice: once with optimistic assumptions, and once with conservative slippage and fees. The gap is your uncertainty budget.
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 note is about system mechanics; outcomes are your responsibility.
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. Funding is not a fee to the exchange; it is a transfer. The schedule and caps matter more than the headline number.
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: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Compute liquidation price twice: once with optimistic assumptions, and once with conservative slippage and fees. The gap is your uncertainty budget.
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 note is about 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.