People over-trust dashboards. The best verification still comes from reading the rule path end to end. Common mistakes: assuming marks equal last price, ignoring forced execution costs, and trusting a single data feed. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. Another mistake: optimizing leverage while ignoring liquidity. Liquidity vanishes first, leverage magnifies the damage. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. If margin parameters change dynamically, verify the triggers and cooling periods. Rapid parameter oscillation is a hidden risk. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora highlights operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. 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.