Does ADL Affect Perpetual Futures Contracts Only?

Auto-deleveraging (ADL) is most commonly associated with and primarily affects perpetual futures contracts. Perpetual futures, unlike traditional futures, have no expiry date, making the risk management mechanisms like ADL crucial for continuous operation.

While less common, the underlying principles of ADL could theoretically be applied to other leveraged derivatives, but the standard practice is to reserve it for perpetual swaps due to their inherent structural risk.