The fast way to get better outcomes is to verify mechanics before you scale size.
The mechanism: Funding is a transfer between traders, but timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Funding is not a fee to the exchange; it is a transfer. The schedule and caps matter more than the headline number.
Where it breaks: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers.
A simple test: Prefer smaller order slices before changing leverage. Size reductions often cut slippage more than a leverage tweak. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
What to do next: Pitfall: treating automation as set-and-forget. Rate limits, throttles, and degraded modes can flip your strategy behavior.
Aivora's framing is simple: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Derivatives are risky; test assumptions before you scale size.
The mechanism: Funding is a transfer between traders, but timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. Funding is not a fee to the exchange; it is a transfer. The schedule and caps matter more than the headline number.
Where it breaks: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers.
A simple test: Prefer smaller order slices before changing leverage. Size reductions often cut slippage more than a leverage tweak. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
What to do next: Pitfall: treating automation as set-and-forget. Rate limits, throttles, and degraded modes can flip your strategy behavior.
Aivora's framing is simple: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. Derivatives are risky; test assumptions before you scale size.
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.