The biggest edge is not a secret indicator; it is knowing what the system will do under stress. Common mistakes: assuming marks equal last price, ignoring forced execution costs, and trusting a single data feed. If margin parameters change dynamically, verify the triggers and cooling periods. Rapid parameter oscillation is a hidden risk. Another mistake: optimizing leverage while ignoring liquidity. Liquidity vanishes first, leverage magnifies the damage. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Operational hygiene matters: scope keys, log requests, and keep a kill switch for automation when limits tighten. 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.