Risk is rarely a single number; it is a chain of assumptions that can snap at the worst time. Checklist before scaling size: 1) Verify mark/index sources. 2) Understand margin steps and maintenance rules. 3) Test liquidation behavior with small size. Ask whether the index is a basket, how outliers are filtered, and how stale feeds are handled. A single broken source should not move your margin state. 4) Confirm fee tiers and forced execution costs. 5) Review risk limits, circuit breakers, and incident transparency. Compute liquidation price including fees and funding assumptions, then compare it to your stop-loss plan. If the two are too close, your plan is mostly hope. Example: if index updates lag by even a few seconds in a spike, mark price smoothing can liquidate you after the spot market already bounced. Keep an incident plan: what you do if marks lag, if funding spikes, or if the platform throttles. Decisions made late are usually expensive. Margin mode changes behavior: cross margin couples positions; isolated margin contains blast radius but demands stricter sizing. Aivora often frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build your plan around that pipeline. This note is about system design and user risk; 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.