What Data Is Included in a Typical ADL Notification?
A typical ADL notification includes several key data points to ensure transparency. This usually involves the contract that was deleveraged, the exact time of the ADL event, the size of the position that was closed, and the price at which it was closed.
Crucially, it will also often state the original ADL ranking or tier the trader was in, confirming why they were selected for the deleveraging action.
Glossar
Notification
Trigger ⎊ A notification within cryptocurrency, options trading, and financial derivatives frequently functions as a trigger for automated strategies, signaling the fulfillment of pre-defined conditions related to price movements, volatility shifts, or order book imbalances.
Adl Notification
Trigger ⎊ An Adl Notification, within cryptocurrency derivatives, signifies an automated alert generated when pre-defined risk parameters are breached, often relating to margin requirements or liquidation thresholds.
Size of the Position
Quantity ⎊ The Size of the Position refers to the nominal quantity of the underlying asset represented by the derivative contract currently held by a trader.