Does ADL Result in a Fee for the Profitable Trader? ⎊ Path

Does ADL Result in a Fee for the Profitable Trader?

No, the profitable trader whose position is closed via ADL does not typically incur a fee. The purpose of ADL is to cover a loss, not to generate revenue from the profitable trader.

They receive the realized profit from the closure. The costs associated with liquidation, such as liquidation fees, are borne by the bankrupt trader.

What Happens to User Assets If a Custodial Exchange Goes Bankrupt?

Is a Trader Liable for the Deficit If the Insurance Fund Is Also Depleted?

What Is the Liquidation Fee and Who Pays It?

How Does Auto-Deleveraging (ADL) Work and Why Does an Exchange Try to Avoid It?

Describe the Function and Importance of a Derivatives exchange’S’Insurance Fund’

What Is ‘Auto-Deleveraging’ (ADL) and When Is It Triggered on a Derivatives Exchange?

Is ADL a Form of Counterparty Risk?

How Does an “Insurance Fund” Function as a Loss-Absorption Layer on a Crypto Derivatives Exchange?