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. 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? If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. Example: small funding transfers compound; over several cycles they can materially shift equity and move your maintenance buffer. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but needs stricter sizing. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.