What is Auto-Deleveraging?
Auto-Deleveraging, or ADL for short, refers to a forced liquidation mechanism adopted by the counterparty to control the overall risk of the platform when the counterparty has a position shortfall, extreme market conditions or force majeure factors lead to a rapid decline in insurance funds. When ADL is triggered, the ADL engine will select the user with the highest leverage return on the platform to reduce their positions.
Please refer to this link to see more information and details : https://futuresdoc.gitbook.io/help-center/perpetual/overview/adl