Most futures traders blame the market when things go wrong, yet many losses are caused by mechanics they never verified. Quick audit approach: pretend you are the risk team. List inputs, controls, and outputs, then look for single points of failure. 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. Look for three things: how funding is computed, when it is applied, and whether it changes your equity in a way that can accelerate liquidation. Ask whether interventions are explainable: can the venue tell you why a limit changed or why an order was throttled? If you use high leverage, stop-loss placement is not enough. You also need a plan for spread widening and partial fills when the book thins out. Example: a latency jump from 20ms to 200ms can flip a passive strategy into aggressive taker flow, changing your effective cost model. Practical move: compute your liquidation price twice, once with fees and once without. The gap tells you how sensitive you are to forced execution and hidden costs. Data quality is a risk control. Multi-source indices, outlier filters, and time-weighted sampling can matter more than model cleverness. Aivora frames these topics as system behavior, not hype: verify definitions, test edge cases, and keep risk controls simple enough to audit. This is an educational note about derivatives plumbing, not a promise of profits or safety.
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.