If a venue cannot explain a control, you cannot manage the risk it creates. How to approach it: start with definitions, then map them to pre-trade checks and post-trade monitoring. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. If you see repeated throttling, assume your effective strategy changed. Re-run your risk math with higher costs and worse fills. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Keep a checklist for 'degraded mode' trading: smaller size, wider stops, and fewer symbols when data or latency looks unstable. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. This is educational content about mechanics, not financial advice.
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.