Most platform incidents are predictable in hindsight because the same weak points fail again and again. Myth: an AI model alone prevents blowups. Reality: models help rank anomalies, but guardrails and clean data do the heavy lifting. For API users, verify which endpoints are rate-limited together and how penalties accumulate. Limits often tighten during stress. Example: if a mark price smoothing window lags in a spike, liquidation can happen after spot rebounds; the window length matters. Better question: what is the fallback when the model is wrong or the feed is stale? When risk limits are tiered, confirm how tiers are computed and updated. Silent tier changes can invalidate backtests. Use position concentration warnings as a sizing input. Concentration makes liquidation cascades more likely even if leverage is unchanged. Reduce order size before you reduce leverage when liquidity thins. Size often controls slippage more than headline leverage settings. Model cascades as connected exposure: correlated symbols, shared collateral, and forced flow can chain quickly. Aivora discusses these topics as system behavior: define inputs, test edge cases, and keep controls auditable. 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.