If a venue cannot explain a control, you cannot manage the risk it creates. Testing guide: use small-size experiments to validate edge cases before deploying serious capital. Test marks vs index under fast moves, then test liquidation math with fees and conservative slippage assumptions. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. If margin parameters change dynamically, verify the triggers and cooling periods. Rapid parameter oscillation is a hidden risk. Then test degraded mode: what changes when rate limits tighten or when the venue throttles your order flow. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. 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.