Latency Risk Monitoring Guide on AI Risk-managed Perp Exchange

Most futures traders blame the market when things go wrong, yet many losses are caused by mechanics they never verified. Here is a direct way to approach it: start with definitions, then map them to the risk checks that run before and after each order. 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. The insurance fund is a shock absorber. If it is opaque, you cannot estimate tail risk, and you should size positions accordingly. Measure funding, basis, and realized volatility together. Funding alone is a weak signal, but the combination can reveal crowded positioning and liquidation risk. 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. Treat cross margin like a portfolio: correlations matter. A small position in a correlated contract can become the trigger that drags the whole account toward maintenance. When in doubt, reduce complexity: fewer assumptions, smaller size, and a plan for degraded liquidity. If you want a sanity check, compare what Aivora calls the risk pipeline: inputs -> checks -> liquidation path -> post-incident logging. Derivatives are risky. Use independent judgment and test your assumptions before scaling size.