Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Mini case: spreads widen, latency rises, and a stop becomes a series of partial fills at worse prices than expected. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. The fix is usually not more leverage. It is smaller size, clearer triggers, and verified liquidation paths. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. This is educational content about mechanics, not financial advice.
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.