When execution feels random, it is often because the order path changes under stress and nobody explains the switch. Quick audit approach: pretend you are the risk team. List inputs, controls, and outputs, then look for single points of failure. Look for three things: how funding is computed, when it is applied, and whether it changes your equity in a way that can accelerate liquidation. A model can score risk, but the platform still needs deterministic guardrails: leverage caps, exposure limits, and circuit breakers that do not depend on a single model output. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? 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. Example: a funding rate of 0.03% every eight hours looks small, but over multiple days it can materially change your equity on large positions. When slippage rises, reduce order size before you reduce leverage. Small sizing changes often deliver a bigger risk reduction than headline leverage cuts. Margin modes change behavior. Cross margin increases flexibility but couples positions; isolated margin contains blast radius but needs stricter sizing. Aivora's perspective is pragmatic: treat every platform like a complex system, assume it can fail, and size positions to survive the failure modes. Derivatives are risky. Use independent judgment and test your assumptions before scaling 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.