What is Auto-Deleveraging (ADL) on BitMEX?
When traders are liquidated, their remaining positions will be taken over by BitMEX’s liquidation engine. If the forced liquidation position cannot be closed in the market, and when the mark price reaches the bankruptcy price, the automatic position reduction system will reduce the position of the trader who holds the opposite position. The order of reducing positions will be determined based on leverage and profit ratio.
The automatic liquidation will be closed according to the bankruptcy price of the liquidated position.
At all times, your position in the sequence is shown by an indicator. This metric expresses your priority in the queue in 20% increments:
In the example above, all the “lights” are on, which means your position is in the top percentile. In the event that a liquidation cannot be carried out in the market, you may be reduced in position.
Insurance Funds are used to prevent automatic liquidation (ADL). If a contract is exhausted, automatic liquidation will take place.
You will be notified if you are automatically reduced. Unfilled orders will be cancelled and you can freely re-open positions.
Go to BitMEX’s Official Website
Please check BitMEX official website or contact the customer support with regard to the latest information and more accurate details.
BitMEX official website is here.
Please click "Introduction of BitMEX", if you want to know the details and the company information of BitMEX.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...