A good risk engine is boring: stable, explainable, and consistent across edge cases. Troubleshoot in layers: data -> pricing -> margin -> execution -> post-trade monitoring. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. First confirm whether marks diverged from index. Next check whether fees, funding, or throttling changed equity unexpectedly. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. Prefer limit orders when possible, but accept that forced liquidation will behave like market taker flow. Plan for that path explicitly. Example: a temporary rate-limit tightening can cause missed exits and worse effective prices even without a price crash. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. Aivora discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. 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.