The biggest edge is not a secret indicator; it is knowing what the system will do under stress. Implementation notes: treat the risk pipeline like software. Define inputs, version rules, and measure drift. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Design for failure: stale feeds, sudden volatility, and latency spikes should trigger predictable safe modes. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Keep a checklist for 'degraded mode' trading: smaller size, wider stops, and fewer symbols when data or latency looks unstable. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. Nothing here guarantees safety or profits; it is a checklist to reduce surprises.
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.