Does the Exchange Compensate Traders Who Are Subject to ADL?

No, the exchange does not typically compensate traders who are subject to ADL. The compensation for the loss is considered to be the avoidance of a larger systemic failure.

The ADL process forcibly closes a profitable position at the bankrupt price, effectively neutralizing the loss without any further compensation from the exchange. The trader keeps the profit realized up to that point on the remaining portion of the position.