Most platform comparisons stop at fees, but execution and liquidation behavior decide the real cost.
Quick definition: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk. Depth is not linear. What looks like 'a little thinner' can create a lot more price impact at size.
Why it matters: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
How to verify: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: doubling size in a thin book can more than double slippage because depth is not linear near top levels. Run a small-size rehearsal when liquidity is thin. Observe how stop orders trigger and how mark/last prices diverge around spikes.
Practical habit: 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.
Quick definition: Liquidation is a path, not a single event. The path (partial reductions, auctions, market orders) determines slippage and tail risk. Depth is not linear. What looks like 'a little thinner' can create a lot more price impact at size.
Why it matters: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
How to verify: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: doubling size in a thin book can more than double slippage because depth is not linear near top levels. Run a small-size rehearsal when liquidity is thin. Observe how stop orders trigger and how mark/last prices diverge around spikes.
Practical habit: 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.