Is the ADL Process Instantaneous or Delayed? ⎊ Path

Is the ADL Process Instantaneous or Delayed?

The auto-deleveraging (ADL) process is designed to be virtually instantaneous. It is an automated function of the exchange's risk engine, triggered immediately upon the confirmation of an uncovered liquidation deficit.

Speed is critical to prevent further market movements from worsening the deficit. Traders are notified of the deleveraging after the fact, with their position size adjusted instantly.

Is There an Appeal Process for an ADL Event?

What Is a Potential Vulnerability of a Commit-Reveal Scheme If the ‘Reveal’ Step Is Delayed?

What Is the Primary Function of a Matching Engine in a Crypto Exchange and How Can Its Design Prevent Front-Running?

When Does ADL Occur in the Liquidation Process?

What Is the Risk of a Liquidation Engine ‘Front-Running’ the Market?

What Happens If the Liquidation Engine Cannot Fully Close the Position in Time?

What Is a Liquidation Engine and How Does It Function in Perpetual Futures Exchanges?

How Does a Broker’s Liquidation Engine Work to Prevent Negative Balances?