What Is the Purpose of the ADL Indicator Lights on Some Exchanges?

The ADL indicator lights (often a set of lights or bars) are a visual tool provided by exchanges to show a trader their current priority ranking in the Auto-Deleveraging queue. The more lights that are lit, the higher the trader's priority for ADL if a deficit occurs.

This provides a clear, real-time warning, allowing the trader to proactively reduce their leverage or position size to move into a lower-risk tier and avoid being deleveraged.