Auto-Deleveraging
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Written by David
Updated over a week ago

Auto-Deleveraging, abbreviated as ADL, refers to a mechanism for the liquidation of counterparty positions to control the platform's overall risk. When the insurance fund is insufficient or drops rapidly due to extreme market conditions or force majeure factors, the ADL system will be triggered;

After the ADL is triggered, the platform will no longer place an order on the market and wait for a suitable price to match the transaction to handle the user's positions that have been forcibly liquidated. Instead, it will find the top account directly in the counterparty's ranking and trade directly with the counterparty's account at the current mark price. After the auto-deleveraging system has processed the losses, they will not be split on the platform.

In addition, users who experience Auto-Deleveraging (ADL) will receive an email/SMS notification, all pending orders will be canceled, and users can freely re-enter the market to trade.

Ranking of Auto-Deleveraging (ADL)

The system will count the positions of various margin currencies and calculate the floating profit and loss in a uniform manner using USDT as the settlement currency. When the total profit/loss exceeds the set value (profit threshold), the positions will be reduced in the ranking of profitability (reduce percent), from highest to lowest, until the set ratio is met.


If you have questions regarding this information, please contact the TruBit Team via our chat channel or email us Here and we'll be in touch!

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