Skip to main content

What Is the Primary Goal of the ADL Ranking System?

The primary goal is to minimize the negative impact of auto-deleveraging on the market and traders. By targeting the most highly leveraged and profitable positions, the system closes the largest positions first, which often means fewer total traders are affected.

This is done to stabilize the market and restore the insurance fund's balance as quickly as possible.

What Criteria Determine Which Profitable Traders Are Selected for ADL?
What Is ‘Auto-Deleveraging’ (ADL) and How Is It Used by Crypto Exchanges?
How Can a Trader Lower Their ADL Ranking without Closing Their Entire Position?
How Does the “Auto-Deleveraging” (ADL) System Work in a Derivatives Exchange?