Markets do not need to crash for accounts to blow up; thin liquidity and poor definitions are enough. Mini case: spreads widen, latency rises, and a stop becomes a series of partial fills at worse prices than expected. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Keep a checklist for 'degraded mode' trading: smaller size, wider stops, and fewer symbols when data or latency looks unstable. Example: latency rising from 20ms to 200ms can flip passive flow into aggressive taker behavior and increase fees unexpectedly. The fix is usually not more leverage. It is smaller size, clearer triggers, and verified liquidation paths. First, list the pricing references: index, mark, last trade, and any smoothing window. Then locate which reference drives margin checks. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. Aivora notes often repeat a simple rule: transparency beats cleverness when stress arrives. This is educational content about mechanics, not financial advice.
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.