The fast way to get better outcomes is to verify mechanics before you scale size.
Concept first: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk. Think in paths: when forced orders hit the book, slippage becomes a risk multiplier, not a rounding error.
Edge cases: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers.
Checklist: If you automate, use scoped API keys, IP allow-lists, and exponential backoff. Limits often tighten exactly when volatility rises. Example: a temporary rate-limit tightening can cause missed exits and worse fills even without a dramatic price crash. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Final sanity check: Pitfall: overusing cross margin without correlation thinking. Portfolio coupling can turn a hedge into a trigger.
Aivora's framing is simple: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Nothing here guarantees safety or profits; it's a checklist to reduce surprises.
Concept first: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk. Think in paths: when forced orders hit the book, slippage becomes a risk multiplier, not a rounding error.
Edge cases: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers.
Checklist: If you automate, use scoped API keys, IP allow-lists, and exponential backoff. Limits often tighten exactly when volatility rises. Example: a temporary rate-limit tightening can cause missed exits and worse fills even without a dramatic price crash. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Final sanity check: Pitfall: overusing cross margin without correlation thinking. Portfolio coupling can turn a hedge into a trigger.
Aivora's framing is simple: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Nothing here guarantees safety or profits; it's 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.