Good venues are predictable. Great venues are predictable even when markets are chaotic. Checklist before scaling size: 1) Verify mark/index sources. 2) Understand margin steps and maintenance rules. 3) Test liquidation behavior with small size. AI monitoring helps by ranking anomalies, but deterministic guardrails must remain: leverage caps, exposure limits, and circuit breakers that do not depend on a single model output. 4) Confirm fee tiers and forced execution costs. 5) Review risk limits, circuit breakers, and incident transparency. Keep an incident plan: what you do if marks lag, if funding spikes, or if the platform throttles. Decisions made late are usually expensive. Example: a sudden rate-limit tightening can turn a strategy into canceled orders, missed exits, and worse effective prices. 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. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora's pragmatic view: assume failures happen, and size positions to survive the failure modes. Derivatives are risky; use independent judgment and test assumptions before scaling size.
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.