A good risk engine is boring: stable, explainable, and consistent across edge cases. Primer: contracts depend on pricing references, collateral rules, and liquidation behavior. AI adds monitoring and prioritization, not miracles. Funding is not just a number; timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. AI monitoring is useful when it remains auditable. Pair it with deterministic guardrails so a single model output cannot flip the market behavior. Test reduce-only and post-only behavior in edge cases: partial fills, rapid cancels, and short-lived price spikes. Example: a 0.05% extra cost on forced execution can erase multiple margin steps when leverage is high and moves are fast. Track basis, funding, and realized volatility together. The combination reveals crowding more reliably than any single metric. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but needs stricter sizing. Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.