If a venue cannot explain a control, you cannot manage the risk it creates. Testing guide: use small-size experiments to validate edge cases before deploying serious capital. Test marks vs index under fast moves, then test liquidation math with fees and conservative slippage assumptions. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Example: a temporary rate-limit tightening can cause missed exits and worse effective prices even without a price crash. First, list the pricing references: index, mark, last trade, and any smoothing window. Then locate which reference drives margin checks. Then test degraded mode: what changes when rate limits tighten or when the venue throttles your order flow. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora notes often repeat a simple rule: transparency beats cleverness when stress arrives. 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.