Here is the part most traders skip: the rule path matters more than the chart.
Concept first: Funding is a transfer between traders, but timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. ADL typically appears only after the insurance buffer is stressed. Look for disclosure and predictable ranking rules.
Edge cases: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
Checklist: Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves. Example: small funding transfers compound; over several cycles they can materially shift equity and your maintenance buffer. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Final sanity check: Pitfall: trusting a single data source. One stale oracle feed can distort index and mark calculations if fallbacks are weak.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. Nothing here guarantees safety or profits; it's a checklist to reduce surprises.
Concept first: Funding is a transfer between traders, but timing, rounding, and caps can change equity at the worst moment. Verify schedule and limits. ADL typically appears only after the insurance buffer is stressed. Look for disclosure and predictable ranking rules.
Edge cases: An AI risk layer should be explainable: it can rank anomalies, but deterministic guardrails must remain stable and auditable.
Checklist: Test reduce-only and post-only behavior with partial fills and fast cancels. Edge cases often appear during rapid moves. Example: small funding transfers compound; over several cycles they can materially shift equity and your maintenance buffer. Track funding together with basis and realized volatility. The combination is a better crowding signal than any single metric.
Final sanity check: Pitfall: trusting a single data source. One stale oracle feed can distort index and mark calculations if fallbacks are weak.
Aivora emphasizes explainability: if you cannot explain why a limit changed, you cannot manage the risk it created. 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.