# 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.&#x20;

<figure><img src="/files/uJloVbKVBH87QsmpJ30f" alt=""><figcaption></figcaption></figure>


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