1️⃣ Mechanism Definition
When a user undergoes forced liquidation, if the market cannot complete order matching at the bankruptcy price and results in negative equity, the system will activate the Auto‑Deleveraging (ADL) mechanism.
�� The system will reduce positions of users holding opposite positions based on their leveraged profit ratio. The deleveraging priority is determined by the profit and risk ranking of users’ positions.
2️⃣ ADL Ranking Calculation Rules
Position Mode｜Leveraged Profit Calculation｜ADL Ranking Rule
---｜---｜---
Isolated Margin｜Profitable Position: Leveraged Profit = Position Rate of Return ÷ Position Margin Ratio
Losing Position: Leveraged Profit = Position Rate of Return × Position Margin Ratio｜Ranked in descending order by leveraged profit
Cross Margin｜Profitable Position: Leveraged Profit = Position Rate of Return ÷ Account Margin Ratio
Losing Position: Leveraged Profit = Position Rate of Return × Account Margin Ratio｜Ranked in descending order by total profit of the single contract (all directions and modes included)
3️⃣ Calculation of Return and Margin Ratio
�� USDT‑Margined Contract — Position Rate of Return
Long Position = (Mark Price − Average Entry Price) ÷ Abs(Average Entry Price)
Short Position = (Average Entry Price − Mark Price) ÷ Abs(Average Entry Price)
4️⃣ ADL Indicator Light (ADL Risk Level)
�� All user positions are ranked by leveraged profit and divided into five risk levels:
⭐⭐⭐⭐⭐ All five lights on — highest risk level, extremely likely to be deleveraged.
If holding both long and short positions simultaneously, the indicator lights for all directions will remain consistent.
✅ Suggestion: To avoid being hit by ADL, you may close positions in advance and re‑open to lower your ranking.
5️⃣ ADL Example
Assume a user opens a 50× BTC/USDT long position with an entry value of 10,000 USDT.
Forced liquidation price: 9,000 USDT
Bankruptcy price: 8,500 USDT
If the market cannot be filled at the bankruptcy price, ADL will be triggered.
Existing short traders are as follows:
User｜Position Size｜Profit Ranking｜ADL Indicator Level
---｜---｜---｜---
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 a total position of 350 needs to be liquidated, deleveraging will be executed sequentially from higher-ranked counterparties A, B and C.
6️⃣ ADL Notification Instructions
If your position is affected by Auto‑Deleveraging:
�� Notification Method:
You will receive an email containing:
• Deleveraging direction and position volume
• Deleveraging execution price
• The order will be marked as ADL Deleveraging in the order center.