If a venue cannot explain a control, you cannot manage the risk it creates. 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: a temporary rate-limit tightening can cause missed exits and worse effective prices even without a price crash. Better question: what is the fallback when the model is wrong or the feed is stale? Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. 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. Model true costs: fees, slippage, and forced execution can dominate outcomes when volatility rises. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.