1️⃣ What Is Auto-Deleveraging (ADL)?
Auto-Deleveraging (ADL) is triggered when a forced liquidation occurs but cannot be executed at or above the bankruptcy price due to insufficient market liquidity. If the remaining margin is not enough to cover the loss (i.e., a clawback risk), the system will automatically deleverage the counterparty’s opposing position based on their leverage and profitability ranking.
2️⃣ How Is ADL Priority Calculated?
Position Mode | Leverage Return Formula | Ranking Rule |
🔹 Isolated Margin |
|
|
Profitable Position:
Leverage Return = PnL Ratio / Margin RatioLosing Position:
Leverage Return = PnL Ratio × Margin Ratio|
🔺 Ranked by leverage return from high to low |
| 🔹 Cross Margin |Profitable Position:
Leverage Return = PnL Ratio / Account Margin RatioLosing Position:
Leverage Return = PnL Ratio × Account Margin Ratio|
🔺 Positions across all modes & directions under the same contract are summed and ranked by total returns |
3️⃣ Profit & Margin Rate Calculations
🔸 USDT-Margined Contracts - PnL Ratio
Long =
(Mark Price - Entry Price) / abs(Entry Price)Short =
(Entry Price - Mark Price) / abs(Entry Price)
4️⃣ ADL Indicator Lights
📊 Each position is ranked by total return and assigned an ADL risk level, displayed via 5 indicators:
🔴 All 5 lights on: High risk of ADL.
If holding both long and short positions, indicator lights will be consistent for both directions.
✅ Tip: To avoid ADL, you may close your position and reopen it at a different level.
5️⃣ ADL Example
Assume a user opens a 50x long BTC/USDT position with 10,000 USDT, liquidation price at 9,000 USDT, and bankruptcy price at 8,500 USDT. If the market cannot fill the position at or above the bankruptcy price, ADL is triggered.
There are 5 short-positioned users in profit:
User | Short Size | Profit Rank | ADL Lights |
A | 100 | Top 10% | 5 lights |
B | 200 | Top 30% | 4 lights |
C | 50 | Top 50% | 3 lights |
D | 150 | Top 80% | 2 lights |
E | 400 | Top 100% | 1 light |
If 350 units need to be forcibly closed, users A, B, and C will be selected to take over the position in descending order of profitability.
6️⃣ Post-ADL Notification
📬 When a user is affected by ADL:
You will receive an email notification detailing:
Which position was reduced
The reduction price
ADL trade record (visible in the order center, marked as "ADL Deleveraging")