Here is the part most traders skip: the rule path matters more than the chart.
What it is: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers. Depth is not linear. What looks like 'a little thinner' can create a lot more price impact at size.
What to check: Look for the platform's fallback rules: what happens if a feed is stale, if the book is thin, or if volatility spikes faster than normal sampling windows.
How to test it: 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.
Common pitfalls: Pitfall: treating automation as set-and-forget. Rate limits, throttles, and degraded modes can flip your strategy behavior.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. Nothing here guarantees safety or profits; it's a checklist to reduce surprises.
What it is: Write down the exact references used: index price, mark price, and last price. Then confirm which reference drives margin checks and liquidation triggers. Depth is not linear. What looks like 'a little thinner' can create a lot more price impact at size.
What to check: Look for the platform's fallback rules: what happens if a feed is stale, if the book is thin, or if volatility spikes faster than normal sampling windows.
How to test it: 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.
Common pitfalls: Pitfall: treating automation as set-and-forget. Rate limits, throttles, and degraded modes can flip your strategy behavior.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. Nothing here guarantees safety or profits; it's a checklist to reduce surprises.
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.