Definition:
When a user’s position is liquidated, if the market cannot execute the liquidation at the bankruptcy price (resulting in an uncovered loss), the system triggers the Auto-Deleveraging (ADL) mechanism. ADL reduces positions of users holding opposite positions, prioritized based on their profitability.Calculation:
The rules are as follows:
Position Mode | Leverage Profit Calculation | Counterparty Sorting Rule |
Isolated Margin | Profit: Leverage Profit = ROI / Margin Ratio | Sorted by leverage profit (highest to lowest) |
Cross Margin | Profit: Leverage Profit = ROI / Account Margin Ratio | All positions under the same contract (long/short, isolated/cross) are aggregated. Sorted by total profit (descending). |
ROI Formulas:
USDⓈ-M Futures (Long):
(Mark Price - Avg. Entry Price) / |Avg. Entry Price|USDⓈ-M Futures (Short):
(Avg. Entry Price - Mark Price) / |Avg. Entry Price|Coin-M Futures (Long):
|Avg. Entry Price| / (1/Avg. Entry Price - 1/Mark Price)Coin-M Futures (Short):
|Avg. Entry Price| / (1/Mark Price - 1/Avg. Entry Price)
Margin Ratio Formulas:
Position Margin Ratio:
(Initial Margin + Unrealized PnL) / Position ValueAccount Margin Ratio:
(Balance + Realized PnL + Unrealized PnL) / (Position Value + Order Margin * Leverage)
ADL Indicator Explanation:
Positions with higher total ROI and lower margin ratios are prioritized for ADL. A 5-bar indicator shows the position’s risk level in the ADL queue. If all bars are lit, the position may be reduced during liquidation events.
Avoiding ADL: Users can close and reopen positions to reset their ADL ranking.
Example:
A user opens a 50x long BTCUSDT position with 10,000 USDT. Liquidation price: 9,000 USDT; bankruptcy price: 8,500 USDT. If the mark price triggers liquidation but cannot execute at 8,500 USDT, ADL activates.
Assume 5 profitable short positions:
User A: 100 short, top 10% profit (5 bars lit).
User B: 200 short, top 30% (4 bars).
User C: 50 short, top 50% (3 bars).
User D: 150 short, top 80% (2 bars).
User E: 400 short, top 100% (1 bar).
If 350 positions need liquidation, Users A, B, and C (highest-ranked) are selected for ADL.
Post-ADL Notification:
Users receive an email notification detailing the reduced position and price. ADL orders are labeled as such in the order history.