Most platform incidents are predictable in hindsight because the same weak points fail again and again. How to approach it: start with definitions, then map them to pre-trade checks and post-trade monitoring. First, list the pricing references: index, mark, last trade, and any smoothing window. Then locate which reference drives margin checks. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. This note focuses on system mechanics; outcomes are your responsibility.
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.