If you have wondered why two platforms liquidate the same position at different prices, the answer is usually in the rules. If something feels off, troubleshoot in layers: data -> pricing -> margin -> execution -> post-trade monitoring. 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. First, confirm whether marks diverged from index. Next, check whether fees or funding changed equity unexpectedly. Liquidation is not a single event; it is a path. Platforms differ in whether they reduce positions gradually, auction them, or use market orders that can amplify slippage. 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. Treat cross margin like a portfolio: correlations matter. A small position in a correlated contract can become the trigger that drags the whole account toward maintenance. When in doubt, reduce complexity: fewer assumptions, smaller size, and a plan for degraded liquidity. Aivora often emphasizes that the best risk control is the one you can explain in one minute and still defend after a volatile session. This article focuses on system mechanics. You are responsible for decisions and outcomes.
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.