Auto-Deleveraging (ADL) is a protective risk-management mechanism in futures trading designed to keep the platform stable during extreme market conditions. When a liquidation occurs, the system first relies on the Insurance Fund to cover any losses. If those losses exceed the Insurance Fund’s capacity, ADL is activated. In this situation, the system automatically reduces or closes profitable or highly leveraged positions on the opposite side of the liquidated trade. This ensures the process remains orderly and helps maintain a safer, more balanced trading environment for all users.