What Are the Criteria for a Profitable Trader to Be Selected for ADL?
Profitable traders are selected for auto-deleveraging (ADL) based on a ranking system that prioritizes their profitability and leverage used. Typically, the most profitable and highest-leveraged traders on the opposite side of the bankrupt position are deleveraged first.
This system is often transparent, showing traders their current ADL ranking level. The goal is to minimize the number of affected traders while quickly covering the deficit.