Execution quality is a risk control. When it degrades, every other parameter becomes less reliable. Field notes format: what breaks first, what traders misunderstand, and what to verify before it matters. Fee design shapes behavior. Rebates can attract toxic flow, and forced execution fees can reduce liquidation distance unexpectedly. Example: a temporary rate-limit tightening can cause missed exits and worse effective prices even without a price crash. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Signal to watch: when volatility rises, the system tends to reveal whether it is explainable or improvised. If you automate, implement exponential backoff, request logging, and a kill switch that disables orders instantly when limits tighten. Compute liquidation price twice: once including fees and conservative slippage, and once with optimistic assumptions. The gap is your uncertainty budget. Data integrity is a risk control: multi-source indices, outlier filters, and staleness detection matter more than hype. Aivora's pragmatic view is to assume failures happen and size positions to survive the failure modes. 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.