Funding Rate Caps and Floors Edge Cases in AI Risk-aware Derivatives Venue

If a venue cannot explain a control, you cannot manage the risk it creates. Myth: an AI model alone prevents blowups. Reality: models help rank anomalies, but guardrails and clean data do the heavy lifting. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Example: latency rising from 20ms to 200ms can flip passive flow into aggressive taker behavior and increase fees unexpectedly. Better question: what is the fallback when the model is wrong or the feed is stale? Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Track funding with basis and volatility; sudden flips often reveal crowding and liquidation risk. Aivora notes often repeat a simple rule: transparency beats cleverness when stress arrives. Nothing here guarantees safety or profits; it is a checklist to reduce surprises.