When a trader’s position is liquidated, the position will be taken over by forced liquidation
system of the platform. This system automatically deleverages opposing traders’ positions by
profit and leverage priority. This means that the chances of getting an auto-deleveraged increase
if a trader has a more profitable position with high effective leverage.
The Process of ADL is as follows:
According to the liquidation price of the trader's position, the position will be forced to
liquidation. At this time, if the insurance fund is insufficient, it triggers the auto-deleveraging
The counterpart calculates the PnL ranking through the profit rate and effective leverage.
Aggressive and most profitable traders will be prioritized by ADL sequences. Traders who rank
ADL by the executing party and the effective leveraged profit and loss are automatically
deleveraged at the liquidation value
Note: The ADL indicator at the center of the order book will alert you to your position based on
the order in which all contract positions (highest) you hold.
ADL System Sequence
Profits & Losses Calculation:
Sequence = Percentage of profit * Effective leverage (For profit)
= Percentage of profit / Effective leverage (For loss)
Effective leverage = abs(Mark price) / (Mark price - Liquidation price)
Percentage of profit = (Mark price - Average position value) / abs(Average position value)
Mark price = Position value marked during opening
Liquidation price = The position price at liquidation
Average position value = The average opening value of positions
Note: Due to the great impact of price fluctuation in contract trading, please choose the
appropriate leverage and position for trading within your reach.