Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Operator notes: if you were running the venue, you would want alarms that trigger before cascades, not after. Liquidation is a path, not an instant. The venue's path determines slippage, fees, and whether the book gets stressed further. Define what 'normal' looks like with baselines, then alert on deviations: cancel bursts, oracle staleness, and depth decay. When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Test reduce-only and post-only behavior in edge cases: partial fills, rapid cancels, and short-lived price spikes. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. When in doubt, reduce complexity and size, and prioritize venues that publish definitions and failure-mode behavior. Aivora highlights operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. 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.