A contract exchange looks simple on the surface, but the plumbing decides who survives volatility. Quick audit method: list inputs, controls, outputs, and single points of failure. When latency spikes, your strategy can switch from maker to taker without warning. That switch can compound fees and reduce liquidation distance. Ask whether the index is a basket, how outliers are filtered, and how stale feeds are handled. A single broken source should not move your margin state. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? Compute liquidation price including fees and funding assumptions, then compare it to your stop-loss plan. If the two are too close, your plan is mostly hope. Example: if index updates lag by even a few seconds in a spike, mark price smoothing can liquidate you after the spot market already bounced. If you run bots, implement exponential backoff and client-side limits. When platform limits tighten, naive retries can look like abuse. Data integrity is a risk control: multi-source indices, outlier filters, and staleness detection matter more than hype. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.