What Is the Typical Latency between a Trigger Event and an ADL Execution? ⎊ Path

What Is the Typical Latency between a Trigger Event and an ADL Execution?

The latency is extremely low, often measured in milliseconds. The ADL system is designed to execute immediately after the insurance fund fails to cover a deficit from a liquidation.

This high speed is necessary to prevent further market movements from exacerbating the deficit and increasing the overall systemic risk.

How Does an Exchange’s Risk Engine Determine the Appropriate Size for an ADL Event?

How Does the Exchange Attempt to Minimize the Market Impact of ADL?

What Measures Can a Trader Take to Minimize the Risk of Being ADL-ed?

How Does Transaction Latency Affect the Profitability of High-Frequency Basis Arbitrage?

What Is the Relationship between ADL and Market Manipulation?

How Does the Concept of ‘Disruption’ Affect the Long-Term Growth Rate Assumption?

Define “Latency” in HFT and Explain Its Critical Role in Execution

Is the ADL Process Instantaneous or Delayed?