When your futures position is flagged by the system as high-risk for ADL (Auto-Deleveraging), a warning light will appear on the trading interface. The light means your position is near the top of the list for forced deleveraging.
ADL is the last line of defense for contract trading risk protection. In times of extreme market volatility, when many users get liquidated or go into negative equity and the insurance fund can't cover all losses, the system triggers ADL. It will forcibly close some profitable positions and use those profits to offset the losses of liquidated users. This process happens at market price, so slippage can occur, but no trading fees are charged on the deleveraged portion.
Step 1: Read the ADL Light and Gauge Your Risk Level
Each open futures position has an ADL risk indicator bar made up of 4 blocks. This directly shows how safe your position is:
More lights on = higher risk: If all 4 blocks are lit, your position is a priority target for ADL – it's been "marked."
Gray or only a few lights = relatively safe: If the indicator is gray or only shows a few lit blocks, you're not at the front of the ADL queue right now.
Risk note: The ADL priority order follows a clear formula. The system calculates your position's profit and loss percentage (PNL Percentage) and your effective leverage (Effective Leverage). The higher your profit and the higher your leverage, the closer you are to the front of the ADL queue. Even if you haven't used your full position size, large unrealized gains combined with high leverage can make you the top ADL target.
Step 2: Act Immediately to Lower Your Risk
Once you see the light come on, don't wait for the system to act. Use these steps to move yourself further back in the queue:
Reduce your leverage: This is the most important step. In the ADL priority formula, effective leverage acts as a multiplier. Lowering your leverage directly cuts your risk score.
Manually take profit to reduce your PNL percentage: High unrealized profit is another multiplier in the formula. Consider closing part of your position near the current price to lock in some gains while lowering your PNL percentage. This makes the system see you as "less profitable" and lowers your ranking.
Shrink your position size: Actively reducing the number of contracts lowers the notional value, which also helps lower the chance of getting caught by ADL.
Enable Delta Neutral mode: If your account qualifies (Unified Account VIP 4 or above), you can turn on the Delta Neutral account feature. The system places such accounts behind others in the ADL queue, giving them a lower priority.
Step 3: Don't Confuse ADL with Normal Liquidation
Many users panic when the light comes on, unsure if it means liquidation or something else. These two mechanisms are completely different:
Normal liquidation: Your position is losing money and your margin is no longer enough. The system closes your position. In this case, you are the one losing funds.
ADL auto-deleveraging: You are a profitable trader, and the system temporarily calls you in to "rescue" the situation. It uses the funds from closing part of your position to cover the losses of liquidated traders. You are passive, but fundamentally you haven't lost money – your profits are just partially realized or reduced.
How to Check If It Worked
After following the steps above, go back to the positions area of the futures interface and check the ADL indicator bar again:
If the light turns gray or the number of lit blocks drops noticeably, your actions have taken effect and your risk ranking has dropped.
It's also a good idea to set a stop-loss order (SL Trigger) near the current price. If the market makes an extreme reversal and ADL risk rises, you can take the initiative to exit and avoid getting passively deleveraged by the system.
What to do next: ADL is usually triggered only in extreme market conditions, so don't be overly stressed on normal days. Get into the habit of setting a reasonable leverage every time before opening a position, and check the ADL light from time to time during open positions – like a regular check on your car's dashboard.
