Auto-Deleveraging (ADL)
Last updated
Last updated
Auto-deleveraging is the final step in the liquidation process. It is the process that occurs when the insurance fund (tied to a specific pair) is not sufficient to cover the losses from the liquidated account. Though ADL is avoided as much as possible, it is the final resort when it comes to ensuring orderly bankruptcy of an account on the platform.
In the ADL system, traders are placed in an ADL priority queue. The higher your rank is in the queue, the higher the likelihood that your position will be auto-deleveraged. The calculation for the rank is stated below.
On the UI, your ADL rank is shown for each position. The more bars that are lit, the higher the likelihood that your position will be ADL-ed.
When auto-deleveraged, both accounts will trade at the mark price.
The higher the rank, the higher the likelihood of ADL.
