How Are Traders Ranked for the Auto-Deleveraging (ADL) Process?

Traders are typically ranked based on a combination of their realized profit and their effective leverage. The higher the profit and the higher the leverage, the higher the trader's ranking.

This ranking system prioritizes the most profitable and riskiest counter-traders for deleveraging. The goal is to minimize the impact on less leveraged or less profitable traders.

The ADL index is usually displayed publicly by the exchange.