Auto-Deleveraging (ADL)
Auto-Deleveraging (ADL) is a risk management mechanism that activates during extreme market conditions, used only when other protective systems – like liquidation and the insurance fund – cannot cover losses in time.
Auto-Deleveraging (ADL) is a risk management mechanism that activates during extreme market conditions, used only when other protective systems — like liquidation and the insurance fund — cannot cover losses in time.
How ADL Works
When a position is liquidated but the execution price is worse than the bankruptcy price, the system absorbs the remaining loss. However, if the liquidation can't be completed before the Mark Price hits the bankruptcy price, ADL is triggered. This forcibly reduces the size of opposite-side positions held by other traders, starting with those who are most profitable and most highly leveraged.
How ADL Priority is Determined
The system uses a ranking based on a trader's profit and leverage:
Metric
Formula
PnL percent
max(0, Unrealized profit) ÷ max(1, Wallet balance)
Margin ratio
If (Wallet balance + Unrealized profit) ≤ 0:
→ margin ratio = 0
If (Wallet balance + Unrealized profit) > 0:
→ Margin ratio = Maintenance margin ÷ (Wallet balance + Unrealized profit)
Leverage PnL
PnL percent × Margin ratio
Leverage PnL quantile
User's leverage PnL rank ÷ Total number of users
The higher your leverage PnL quantile, the higher your ADL risk.
ADL Risk Indicator
The LeveragePnLQuantile bar shows your risk of being auto-deleveraged:
4 bars = high ADL risk
Fewer bars = lower ADL risk
In Aster Pro, the LeveragePnLQuantile bar shows your risk of being auto-deleveraged:
4 bars = high ADL risk
Fewer bars = lower ADL risk
How to Reduce ADL Risk
Lower your leverage
Close and reopen your position to reset your priority in the ADL queue
What Happens If You're ADL'd
Your position is partially or fully reduced without warning. You can re-enter the market at any time afterward.
Your position is partially or fully reduced without warning. You can re-enter the market at any time afterward.
Additional notes
The bankruptcy price might fall outside the current trading range, making it harder to fully close your position before losses exceed your margin
ADL mostly affects traders with high leverage and large unrealized profits
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