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Auto-Deleveraging (ADL) is a last-resort mechanism used to close positions in profit to cover losses from liquidations when the Insurance Fund is not enough. It’s rare, but it’s important to understand how it works.

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Why ADL exists

When a trader is liquidated and their position can’t be closed at or above the Bankruptcy Price, the Insurance Fund covers the loss. If the Insurance Fund doesn’t have enough balance, Roxom uses ADL to automatically close positions from traders on the other side of the market.
Read how the Insurance Fund works in the Insurance Fund section of our Rulebook.

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How positions are chosen for ADL

Positions are ranked based on:
  1. Profitability (percentage PnL)
  2. Effective leverage (position size relative to margin)
The most profitable and highly leveraged traders are first in line.
See the exact ADL ranking formula in the Auto-Deleveraging section of our Rulebook.

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What happens if you’re affected by ADL

  • Your position (or part of it) is closed at the Bankruptcy Price of the liquidated position
  • You keep any realized profit up to that point
  • You can reopen a new position immediately if you want

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How to reduce your ADL risk

  • Avoid very high leverage — Lower leverage reduces your ADL ranking
  • Watch your ADL indicator — The indicator (lights) in the position panel shows your risk level. More lights mean a higher chance of being selected
  • Consider taking partial profits — If you’re high in the ADL ranking, taking profits can reduce your risk

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Key takeaways

Important points:
  • ADL is rare and happens only when the Insurance Fund can’t cover losses
  • If you’re chosen, you keep your profits — you just lose the position
  • The ADL indicator in the interface shows your current risk level (between 1 to 5 lights)

How do I view my open orders in Derivatives

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How funding payments work (and when you pay or receive)

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