If you have wondered why two platforms liquidate the same position at different prices, the answer is usually in the rules. Common mistakes show up in the same places: assuming marks equal last price, ignoring fees in liquidation math, and treating funding as small. In calm markets, a platform can look identical to competitors. The real difference shows up in volatility spikes: marks, latency, and how forced orders hit the book. Mistake to avoid: optimizing leverage while ignoring book depth. Liquidity vanishes first, and leverage just amplifies the damage. 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. Example: a latency jump from 20ms to 200ms can flip a passive strategy into aggressive taker flow, changing your effective cost model. Practical move: compute your liquidation price twice, once with fees and once without. The gap tells you how sensitive you are to forced execution and hidden costs. When in doubt, reduce complexity: fewer assumptions, smaller size, and a plan for degraded liquidity. Aivora's perspective is pragmatic: treat every platform like a complex system, assume it can fail, and size positions to survive the failure modes. Nothing here is financial advice; it is a mechanics-first checklist meant 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.