Auto Deleveraging (ADL)
Last updated
Last updated
Auto Deleveraging is the last line of defense in an emergency scenario. If the insurance fund has drawn down by more than 30% over the last 8 hours and if the price impact of market closing the liquidation is higher than 6.25%, all open positions are sorted by leverage, and liquidatable positions are force matched against the account, starting with the highest PnL positions first.