> For the complete documentation index, see [llms.txt](https://nftperp.gitbook.io/core-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nftperp.gitbook.io/core-docs/nftperp/protocol-design/auto-deleveraging-adl.md).

# Auto Deleveraging (ADL)

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. 

<figure><img src="https://930627626-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fps5WHusVSdrEDjL2M1xG%2Fuploads%2FLZOnCqAqHquTREzO96WW%2FADL.png?alt=media&amp;token=e4bea396-7dcd-4942-a68f-0f9deaefcf58" alt=""><figcaption></figcaption></figure>