What Is the Visual Indicator an Exchange Might Use to Show a Trader's ADL Risk Level? ▴ Learn

What Is the Visual Indicator an Exchange Might Use to Show a Trader’s ADL Risk Level?

Many crypto futures exchanges use a visual ADL indicator, often represented by a series of lights, bars, or a numerical ranking. This indicator shows the trader's position in the ADL queue relative to other profitable traders.

A higher number or more "lit" bars means the trader is closer to being auto-deleveraged if the insurance fund fails. This allows traders to manage their risk by reducing leverage or profit before they are forcibly closed.

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