What's auto-deleveraging (ADL) and when can it happen to me?
Auto-deleveraging (ADL) is a risk-management mechanism that may be used in extreme market conditions, depending on the platform's liquidation and insurance framework.
It's designed to help maintain market stability and manage system-level risk when normal liquidation processes aren't sufficient.
When can ADL happen to me?
ADL may occur in situations such as:
extreme volatility
rapid price gaps
stressed liquidity conditions
liquidations that cannot be fully absorbed through normal processes
What does this mean for me as a trader?
If ADL is triggered, some positions may be reduced or closed according to platform risk rules and priority methodology.
On our platform, ADL is a last-resort mechanism used when standard liquidation handling isn't sufficient. We may update the triggering conditions and mechanics over time. Always check our latest product documentation and in-app disclosures for the rules that apply to your contract and account setup.
Why does this matter?
ADL isn't part of normal day-to-day trading behaviour, but it's important to understand before trading leveraged products because it can affect positions during unusually stressed markets.
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Disclaimer: X-Perps are leveraged derivatives. Leverage can amplify gains and losses. Losses may occur quickly and these products may not be suitable for all investors.