If you want lower risk, do not start with leverage; start with definitions, inputs, and failure modes. Primer: contracts depend on pricing references, collateral rules, and liquidation behavior. AI adds monitoring and prioritization, not miracles. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. 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. Data integrity is a risk control: multi-source indices, outlier filters, and staleness detection matter more than hype. 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.