When execution feels random, it is often because the order path changes under stress and nobody explains the switch. 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. Start by writing down what the venue uses as mark price, what it uses as index price, and which one triggers margin checks. If those definitions are missing, your risk is already higher. When slippage rises, reduce order size before you reduce leverage. Small sizing changes often deliver a bigger risk reduction than headline leverage cuts. Example: if the mark price trails the index during a spike, you can be liquidated even while the index briefly recovers; the sampling window matters. 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 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.