Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. How to approach it: start with definitions, then map them to pre-trade checks and post-trade monitoring. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Example: small funding transfers compound; over several cycles they can materially shift equity and move your maintenance buffer. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. Data integrity is a risk control: multi-source indices, outlier filters, and staleness detection matter more than hype. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. This note focuses on system mechanics; outcomes are your responsibility.
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.