Auto-Deleveraging (ADL)

ADL is active on Pre-Launch Token Futures markets and HYPE perp. Options and other perps are currently not under ADL.

ADL (Auto-Deleveraging) is the final step in the liquidation process, a last-resort safety feature used when a bankrupt position can't be liquidated normally due to market conditions: Aevo will close the most profitable, highest-leveraged positions first to maintain system stability.

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.

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ADL Rank Calculation

The higher the rank, the higher the likelihood of ADL.

PNL Percent = UPNL / Max(1, Balance)

If PNL Percentage ≤ 0, then Margin Ratio = 0
If PNL Percentage > 0, then Margin Ratio = Maintenance Margin / (Balance + UPNL)

ADL Score = PNL Percent * Margin Ratio