What's auto-deleveraging (ADL) and when can it happen to me?

Auto-deleveraging (ADL) is a risk-management mechanism that may be used in extreme market conditions, depending on the platform's liquidation and insurance framework.

It's designed to help maintain market stability and manage system-level risk when normal liquidation processes aren't sufficient.

When can ADL happen to me?

ADL may occur in situations such as:

• extreme volatility

• rapid price gaps

• stressed liquidity conditions

• liquidations that cannot be fully absorbed through normal processes

What does this mean for me as a trader?

If ADL is triggered, some positions may be reduced or closed according to platform risk rules and priority methodology.

On our platform, ADL is a last-resort mechanism used when standard liquidation handling isn't sufficient. We may update the triggering conditions and mechanics over time. Always check our latest product documentation and in-app disclosures for the rules that apply to your contract and account setup.

Why does this matter?

ADL isn't part of normal day-to-day trading behaviour, but it's important to understand before trading leveraged products because it can affect positions during unusually stressed markets.

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Disclaimer: X-Perps are leveraged derivatives. Leverage can amplify gains and losses. Losses may occur quickly and these products may not be suitable for all investors.