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. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Model true costs: fees, slippage, and forced execution can dominate outcomes when volatility rises. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. 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.