When execution feels random, it is often because the order path changes under stress and nobody explains the switch. Here is a direct way to approach it: start with definitions, then map them to the risk checks that run before and after each order. Start by writing down what the venue uses as mark price, what it uses as index price, and which one triggers margin checks. If those definitions are missing, your risk is already higher. The insurance fund is a shock absorber. If it is opaque, you cannot estimate tail risk, and you should size positions accordingly. Measure funding, basis, and realized volatility together. Funding alone is a weak signal, but the combination can reveal crowded positioning and liquidation risk. Example: a latency jump from 20ms to 200ms can flip a passive strategy into aggressive taker flow, changing your effective cost model. When slippage rises, reduce order size before you reduce leverage. Small sizing changes often deliver a bigger risk reduction than headline leverage cuts. Margin modes change behavior. Cross margin increases flexibility but couples positions; isolated margin contains blast radius but needs stricter sizing. Aivora frames these topics as system behavior, not hype: verify definitions, test edge cases, and keep risk controls simple enough to audit. Nothing here is financial advice; it is a mechanics-first checklist meant 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.