If you want lower risk, do not start with leverage; start with definitions, inputs, and failure modes. Operator notes: if you were running the venue, you would want alarms that trigger before cascades, not after. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Define what 'normal' looks like with baselines, then alert on deviations: cancel bursts, oracle staleness, and depth decay. Ask how stale data is detected and what the fallback is. A single broken feed should not move your margin state on its own. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.