The biggest edge is not a secret indicator; it is knowing what the system will do under stress. Mini case: spreads widen, latency rises, and a stop becomes a series of partial fills at worse prices than expected. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. The fix is usually not more leverage. It is smaller size, clearer triggers, and verified liquidation paths. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. 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 discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. 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.