Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Myth: an AI model alone prevents blowups. Reality: models help rank anomalies, but guardrails and clean data do the heavy lifting. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Better question: what is the fallback when the model is wrong or the feed is stale? Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but needs stricter sizing. 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.