Markets do not need to crash for accounts to blow up; thin liquidity and poor definitions are enough. Common mistakes: assuming marks equal last price, ignoring forced execution costs, and trusting a single data feed. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. Another mistake: optimizing leverage while ignoring liquidity. Liquidity vanishes first, leverage magnifies the damage. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Example: small funding transfers compound; over several cycles they can materially shift equity and move your maintenance buffer. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Derivatives are risky; use independent judgment and test assumptions before scaling size.
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.