Auto-deleveraging (ADL) is a risk-management mechanism that may be used in extreme market conditions, depending on the platform's liquidation and insurance framework.
It's designed to help maintain market stability and manage system-level risk when normal liquidation processes aren't sufficient.
Checklist
- Auto-deleveraging (ADL) is a risk-management mechanism that may be used in extreme market conditions, depending on the platform's liquidation and insurance framework.
- It's designed to help maintain market stability and manage system-level risk when normal liquidation processes aren't sufficient.
- When can ADL happen to me?
- ADL may occur in situations such as:
- extreme volatility
- rapid price gaps
- stressed liquidity conditions
- liquidations that cannot be fully absorbed through normal processes
Notes
When can ADL happen to me?
ADL may occur in situations such as:
extreme volatility
rapid price gaps
Details follow the official OKX help article; this page is a learning checklist, not an official mirror.
