People over-trust dashboards. The best verification still comes from reading the rule path end to end. Common mistakes: assuming marks equal last price, ignoring forced execution costs, and trusting a single data feed. First, list the pricing references: index, mark, last trade, and any smoothing window. Then locate which reference drives margin checks. Another mistake: optimizing leverage while ignoring liquidity. Liquidity vanishes first, leverage magnifies the damage. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Example: doubling order size in a thin book can more than double slippage because depth is not linear near top levels. Treat cross margin as a correlated portfolio, not a set of independent positions. Correlations tend to converge in selloffs. Latency risk is real. When latency rises, a maker strategy can become taker flow and your costs jump right when you need stability. Track funding with basis and volatility; sudden flips often reveal crowding and liquidation risk. Aivora frames risk as a pipeline: inputs -> checks -> liquidation path -> post-incident logs. Build around that pipeline. This note focuses on 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.