Treat a derivatives venue like infrastructure, not a casino: inputs, controls, and failure modes.
Concept first: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately. Funding is not a fee to the exchange; it is a transfer. The schedule and caps matter more than the headline number.
Edge cases: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
Checklist: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a temporary rate-limit tightening can cause missed exits and worse fills even without a dramatic price crash. Treat cross margin as a correlated portfolio. Correlations converge during stress, so diversification can vanish when you need it most.
Final sanity check: 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. This is educational content about mechanics, not financial advice.
Concept first: Latency is a risk factor. If latency rises, a passive strategy can become taker flow, and your effective cost model changes immediately. Funding is not a fee to the exchange; it is a transfer. The schedule and caps matter more than the headline number.
Edge cases: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
Checklist: Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric. Example: a temporary rate-limit tightening can cause missed exits and worse fills even without a dramatic price crash. Treat cross margin as a correlated portfolio. Correlations converge during stress, so diversification can vanish when you need it most.
Final sanity check: 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. This is educational content about mechanics, not financial advice.
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.