What’s Futures Auto-Deleverage (ADL)

What is Auto-Deleverage (ADL)?

When the positions of traders are liquidated, their remaining positions are taken over by the CoinEx liquidation engine. If the insurance fund cannot fully fill the loss of any forced liquidation order, or the liquidity of the current futures market is insufficient, the process of Auto-Deleverage will be systematically triggered, namely ADL (Auto-Deleverage).

Note: If your position is auto-deleveraged, you will receive a notification, your unfilled orders will be canceled, and you can open a new position at any time. During ADL, the position will be closed according to the bankruptcy price of the forced liquidation position, and the ADL transactions will not be submitted to the order book.

 

ADL Priority

The priority for ADL is calculated by profit and leverage, and traders with more profit and high leverage will deleverage first. Meanwhile, the long and short positions will be systematically sorted from high to low.

Priority = Profit% * Actual Leverage

in:

Actual leverage = Cumulative Open value / Margin
(Long Position) Profit% = Mark Value / Cumulative Open Value
(Short Position) Profit% = Cumulative Open Value / Mark Value
Mark Value = Position Quantity * Mark Price

Note: Long and short positions are sorted separately

 

ADL Indicator

The ADL indicator will be displayed in the position information, which indicates your priority in the queue in increments of 20%. The more lights are on, the more likely your position will automatically auto-deleveraged.

Next to the current open contract market, the ADL indicator is shown as follows:

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