Does ADL Affect a Trader’s Realized or Unrealized Profit?

Auto-Deleveraging (ADL) primarily affects a trader's unrealized profit. When a position is ADL'd, a portion of the profitable position is forcibly closed.

This action realizes the profit on the closed portion, but it reduces the overall size of the open position. Therefore, the trader's potential future unrealized profit is reduced, and a portion of their profit is locked in (realized) at the time of the ADL event.