If a venue cannot explain a control, you cannot manage the risk it creates. Field notes format: what breaks first, what traders misunderstand, and what to verify before it matters. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Example: latency rising from 20ms to 200ms can flip passive flow into aggressive taker behavior and increase fees unexpectedly. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Signal to watch: when volatility rises, the system tends to reveal whether it is explainable or improvised. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. Derivatives are risky; use independent judgment and test 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.