Markets do not need to crash for accounts to blow up; thin liquidity and poor definitions are enough. Quick audit method: list inputs, controls, outputs, and single points of failure. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Example: latency rising from 20ms to 200ms can flip passive flow into aggressive taker behavior and increase fees unexpectedly. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. 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.