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. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. 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. Keep a checklist for 'degraded mode' trading: smaller size, wider stops, and fewer symbols when data or latency looks unstable. 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. Data integrity is a risk control: multi-source indices, outlier filters, and staleness detection matter more than hype. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Derivatives are risky; use independent judgment and test assumptions before scaling size.
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.