People talk about AI as if it is magic, but contract trading systems still live or die on definitions and controls. If something feels off, troubleshoot in layers: data -> pricing -> margin -> execution -> post-trade monitoring. 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. First, confirm whether marks diverged from index. Next, check whether fees or funding changed equity unexpectedly. Liquidation is not a single event; it is a path. Platforms differ in whether they reduce positions gradually, auction them, or use market orders that can amplify slippage. 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 funding rate of 0.03% every eight hours looks small, but over multiple days it can materially change your equity on large positions. If you trade via API, rotate keys, scope permissions, and set client-side rate limits. Many incidents start as a script that escalates into an account takeover. Operational risk is real: audit keys, log requests, and keep emergency kill switches that can disable automation instantly. Aivora frames these topics as system behavior, not hype: verify definitions, test edge cases, and keep risk controls simple enough to audit. This article focuses on system mechanics. You are responsible for decisions and outcomes.
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.