When execution feels random, it is often because the order path changes under stress and nobody explains the switch. A simple primer: contracts depend on pricing references, collateral rules, and liquidation behavior. AI adds monitoring and prioritization, not miracles. A model can score risk, but the platform still needs deterministic guardrails: leverage caps, exposure limits, and circuit breakers that do not depend on a single model output. Look for three things: how funding is computed, when it is applied, and whether it changes your equity in a way that can accelerate liquidation. If you use high leverage, stop-loss placement is not enough. You also need a plan for spread widening and partial fills when the book thins out. Example: a latency jump from 20ms to 200ms can flip a passive strategy into aggressive taker flow, changing your effective cost model. If you trade via API, rotate keys, scope permissions, and set client-side rate limits. Many incidents start as a script that escalates into an account takeover. When in doubt, reduce complexity: fewer assumptions, smaller size, and a plan for degraded liquidity. Aivora frames these topics as system behavior, not hype: verify definitions, test edge cases, and keep risk controls simple enough to audit. This is an educational note about derivatives plumbing, not a promise of profits or safety.
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.