If a venue cannot explain a control, you cannot manage the risk it creates. Quick audit method: list inputs, controls, outputs, and single points of failure. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Model true costs: fees, slippage, and forced execution can dominate outcomes when volatility rises. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. 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.