AI can help rank anomalies, but it cannot replace clear rules you can audit.
What it is: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
What to check: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk.
How to test it: Treat cross margin as a correlated portfolio. Correlations converge during stress, so diversification can vanish when you need it most. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Prefer smaller order slices before changing leverage. Size reductions often cut slippage more than a leverage tweak.
Common pitfalls: Pitfall: trusting a single data source. One stale oracle feed can distort index and mark calculations if fallbacks are weak.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. This note is about system mechanics; outcomes are your responsibility.
What it is: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
What to check: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk.
How to test it: Treat cross margin as a correlated portfolio. Correlations converge during stress, so diversification can vanish when you need it most. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Prefer smaller order slices before changing leverage. Size reductions often cut slippage more than a leverage tweak.
Common pitfalls: Pitfall: trusting a single data source. One stale oracle feed can distort index and mark calculations if fallbacks are weak.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. This note is about 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.