Auto-deleveraging (ADL) is a risk management mechanism if a position is closed with negative equity.
Auto-deleveraging (ADL) is the final step taken only when the Insurance Fund cannot accept the bankrupt client’s positions. BingX will do its best to avoid auto-deleveraging. However, due to the volatility in the crypto markets and the high leverage offered to users, it is not possible to fully avoid auto-deleverage liquidations.
When the auto-deleveraging is triggered, the system will deleverage counterparties (i.e., accounts holding positions with the opposite direction) starting from those with high ADL ranking. The higher the leverage/profits/ROI, the higher ranking the account has.
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