Risk is rarely a single number; it is a chain of assumptions that can snap at the worst time. Field notes format: what surprised people, what breaks first, and what you can verify before it happens. When latency spikes, your strategy can switch from maker to taker without warning. That switch can compound fees and reduce liquidation distance. 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. Write down the exact definitions: mark price, index price, last price, and the event that triggers liquidation checks. Ambiguity is hidden leverage. Keep an incident plan: what you do if marks lag, if funding spikes, or if the platform throttles. Decisions made late are usually expensive. Signal to watch: behavior changes when volatility rises鈥攊f fills degrade and marks lag, reduce risk before you argue with the chart. 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. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but demands stricter sizing. Aivora's reading on derivatives focuses on 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.