The insurance fund has enough balance on its books, but your profitable position still gets deleveraged by ADL -- this seems contradictory, but it follows the platform's built-in rules.
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The "sufficiency" of the insurance fund is not the same as what you understand as "can cover all risks". It has a maximum single-position takeover limit, and this limit is dynamic and kept confidential.
Insurance Fund Is Not an All-Capacity Buyer of Last Resort
You can only see the public fund balance, but its actual available quota is the balance multiplied by a pre-set multiplier. For example, if the fund balance is 1 million and the multiplier is 3, the maximum nominal position it can take over is 3 million. Once a single bankrupt liquidated position exceeds this upper limit, the system will not wait for the fund to run out, but directly activate ADL.
So the rule is not "ADL will not trigger as long as the fund has enough total money". Instead, the trigger threshold depends on whether the value of a single bankrupt position exceeds the fund's maximum single takeover capacity, not whether the total fund balance can cover all losses.
The Real Root Cause: Liquidity Crunch, Not Insufficient Total Fund Money
The core precondition for ADL to trigger is: The bankrupt liquidated position cannot be filled normally in the open market.
Under extreme market conditions, the order book depth drops sharply. Liquidated orders stay unclaimed, and the forced liquidation engine cannot execute trades at normal prices. At this time, even if the insurance fund has money on its books, it may choose not to take over the position, because the takeover cost is too high, or the position size exceeds the single-position upper limit. The remaining loss gap can only be covered by ADL, which deducts from profitable positions.
Binance's official explanation of ADL is clear: Auto-deleveraging is the last resort triggered when "the futures risk guarantee fund cannot cover the loss of the bankrupt position", and the matching engine will "sort and select counterparties based on leverage multiple and profit level".
ADL Is Not Random, It Sorts Positions by Priority Score
Users selected by ADL are not just unlucky, it is because their position ranks high in the score of floating profit ratio × effective leverage.
| Dimension | Description |
|---|---|
| ADL Scoring Formula | Floating profit ratio × effective leverage, higher score means you get deleveraged first |
| Your Position Signal | The futures page has an ADL indicator bar, all lights on mean you have the highest ADL priority |
| Avoidance Methods | Lower leverage, take profit actively, diversify positions, avoid holding high-leverage long-term positions on small-cap tokens |
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Verification Method After ADL Execution
After your position is closed by ADL, check the futures position status on the trading page. ADL will not make you lose money, it only forces you to realize your floating profit. You can find the closed record in [Order History], marked as "ADL" or "Auto-Deleveraging" type. If you find you are at the front of the ADL queue, manually reduce your position or lower leverage first, do not wait for the system to operate automatically.
