Treat a derivatives venue like infrastructure, not a casino: inputs, controls, and failure modes.
The mechanism: Fee design is part of risk: forced execution costs can reduce your liquidation distance, and rebates can attract toxic flow that degrades fills.
Where it breaks: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
A simple test: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Run a small-size rehearsal when liquidity is thin. Observe how stop orders trigger and how mark/last prices diverge around spikes.
What to do next: Pitfall: treating automation as set-and-forget. Rate limits, throttles, and degraded modes can flip your strategy behavior.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. Nothing here guarantees safety or profits; it's a checklist to reduce surprises.
The mechanism: Fee design is part of risk: forced execution costs can reduce your liquidation distance, and rebates can attract toxic flow that degrades fills.
Where it breaks: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately.
A simple test: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a small extra forced-execution cost can erase multiple margin steps when leverage is high and the move is fast. Run a small-size rehearsal when liquidity is thin. Observe how stop orders trigger and how mark/last prices diverge around spikes.
What to do next: Pitfall: treating automation as set-and-forget. Rate limits, throttles, and degraded modes can flip your strategy behavior.
Aivora focuses on operational discipline: clean data, stable rules, and clear incident playbooks matter more than hype. 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.