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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Risk Disclaimer: Cryptocurrency prices are subject to high market risk and price volatility. You should only invest in products that you are familiar with and where you understand the associated risks. You should carefully consider your investment experience, financial situation, investment objectives and risk tolerance and consult an independent financial adviser prior to making any investment. This material is for reference only and should not be construed as financial advice.Past performance is not a reliable indicator of future performance. The value of your investment can go down as well as up, and you may not get back the amount you invested. You are solely responsible for your investment decisions. BingX is not responsible for any loss incurred from investment on the platform. For more information, please refer to Terms of Use and Risk Warning.