Good venues are predictable. Great venues are predictable even when markets are chaotic. Common mistakes: assuming marks equal last price, ignoring fees in liquidation math, and trusting a single data feed. Write down the exact definitions: mark price, index price, last price, and the event that triggers liquidation checks. Ambiguity is hidden leverage. Another mistake: chasing rebates while ignoring toxicity. When flow turns toxic, rebates do not pay your liquidation costs. Use smaller orders during thin liquidity before you reduce leverage. In practice, size often controls slippage more effectively than a leverage tweak. Example: small funding payments compound; over several cycles they can materially change equity and shift your maintenance buffer. Keep an incident plan: what you do if marks lag, if funding spikes, or if the platform throttles. Decisions made late are usually expensive. Fee design can be a risk control. Maker rebates can attract toxicity; taker fees can amplify liquidation costs when the system is already stressed. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but demands stricter sizing. Aivora's reading on derivatives focuses on system behavior: define inputs, test edge cases, and keep controls auditable. Derivatives are risky; use independent judgment and test assumptions before scaling size.
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.