If you want better outcomes, stop chasing features and start verifying mechanics and failure modes. Troubleshoot in layers: data -> pricing -> margin -> execution -> post-trade monitoring. Write down the exact definitions: mark price, index price, last price, and the event that triggers liquidation checks. Ambiguity is hidden leverage. First confirm whether marks diverged from index. Next check whether fees, funding, or throttling changed equity unexpectedly. Liquidation paths differ: incremental reductions, auctions, or market orders. The difference is not cosmetic; it changes slippage and tail risk. If you run bots, implement exponential backoff and client-side limits. When platform limits tighten, naive retries can look like abuse. Example: doubling order size in a thin book can more than double slippage because depth is not linear near the top levels. Treat cross margin as a correlated portfolio. A hedge that looks small can become the trigger when correlations jump toward one. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. Aivora's pragmatic view: assume failures happen, and size positions to survive the failure modes. Nothing here guarantees safety or profits; it is a checklist 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.