How Auto-Deleveraging Ranks Profitable Futures Positions
Summary
The document explains auto-deleveraging (ADL) as a last-resort futures exchange mechanism for offsetting an insolvent position when liquidation proceeds and an insurance fund cannot cover its deficit. It describes a ranking approach that prioritizes opposing positions with greater effective leverage and unrealized return on investment. The guide also discusses a five-light risk indicator and suggests reducing leverage, adding isolated margin, realizing some profits, or using exit orders to lower exposure to early selection.
The article presents these procedures as Bitget-specific and supplies operational details about execution and account handling, but it offers no event history, data, or independent evidence for the claims. In particular, ADL rules, ranking formulas, insurance arrangements, and interface indicators can vary by exchange and may change. Traders should consult current contract rules before relying on these descriptions; ADL is distinct from the liquidation of a trader’s own under-margined position.
Key ideas
- ADL is described as a last-resort response when an insolvent position cannot be covered by liquidation and insurance resources.
- The guide says opposing positions with higher leverage and unrealized profitability rank higher for ADL.
- A displayed risk indicator is intended to show a position’s relative priority in the ADL queue.
- Reducing effective leverage or realizing profits may lower a trader’s ranking under the described system.
- The article’s exchange-specific descriptions are not supported by event data or independent verification.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.