Can a Trader Be Liquidated and ADL’d Simultaneously?
No, a trader cannot be liquidated and ADL'd simultaneously. Liquidation is the first step, triggered by the trader's insufficient margin.
ADL is a secondary, platform-wide mechanism triggered only after a liquidation has failed to cover its deficit and the insurance fund has been depleted. A trader is either liquidated due to their own risk, or ADL'd due to a system-wide deficit.
