Does a Decentralized Futures Exchange (DEX) Use ADL or a Similar Mechanism?

Decentralized exchanges (DEXs) typically use a different mechanism than ADL, often relying on a liquidation pool or a decentralized insurance vault. Some DEXs use a protocol where liquidators are incentivized to close positions, and if a deficit occurs, it is covered by the vault or a socialized loss mechanism among protocol token holders.

The goal is the same: to cover shortfalls without relying on a centralized ADL ranking system.