If a venue cannot explain a control, you cannot manage the risk it creates. Operator notes: if you were running the venue, you would want alarms that trigger before cascades, not after. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Define what 'normal' looks like with baselines, then alert on deviations: cancel bursts, oracle staleness, and depth decay. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. 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. 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.