Margin Increase After Partial Position Reduction: Why Your ADL Rank Does Not Drop

 / 
3

You have partially closed your position, but the ADL indicator has not gone down, or even lit up — this is very counterintuitive. You just reduced your position size and added extra margin, which should logically lower trading risk, so why hasn't your ADL ranking moved?

OKX Exchange
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
New user benefit: 20% off trading fees upon registration!!

The root cause is: ADL ranking measures "position quality", not absolute position value. You closed part of your position, but the remaining portion may still have the exact same profit percentage and leverage multiple as before.

Key Formula: Why Partial Position Reduction Does Not Necessarily Lower ADL Rank

ADL (Auto-Deleveraging) is triggered when the exchange's insurance fund cannot cover bankruptcy losses, and the system automatically closes positions of the most profitable, highest leverage traders to cover the deficit. The selection rule is very simple — each profitable position is assigned a score, and the higher the score, the earlier it gets auto-deleveraged.

The rules on Binance and Bitget are almost identical:

ADL Score = Profit Percentage × Effective Leverage (Some platforms multiply this value by the maintenance margin rate in their formula, following the same logic: higher risk, higher profit positions get targeted first.)

The catch here is: after you partially close your position, the profit percentage of your remaining position barely changes. The example below makes this clear:

Before Partial ReductionAfter Partial Reduction
Unrealized Profit100 U50 U
Position Value1000 U500 U
Unrealized Profit Percentage10%10% (no change)
Leverage5x5x (no change)
ADL Score10% × 5 = 0.510% × 5 = 0.5 (no change)

Your total unrealized profit is cut in half, but the profit percentage stays the same, and your leverage also remains unchanged. Since the ADL ranking formula does not include the "total position value" parameter at all, your ranking will most likely not move much. It will only drop slightly if your total position size is so small that it falls out of the current ADL tier.

What Can You Do To Actually Lower Your ADL Rank?

To lower your ADL ranking, the core approach is to adjust the numerator or denominator of the ADL score formula:

  1. Full take-profit: Lock in your unrealized profit completely. This is the most effective method, as your profit percentage drops directly to 0, and your ADL score becomes 0 too.

  2. Lower your leverage: Leverage is a direct multiplier in the ADL formula. If you cut your leverage by half, your ADL score is also halved.

  3. Add extra margin: Adding more margin to your position reduces your effective leverage, which in turn lowers your ADL score.

If you only want to reduce your potential ADL loss instead of avoiding ADL completely, partial position reduction still works. The system may only close 20% of your remaining position instead of the original 50%. Your ADL ranking stays the same, but your total position size is smaller, so the absolute loss when you get deleveraged will be much lower.

OKX Exchange
A leading global cryptocurrency platform,suitable for both beginners and experienced traders.
New user benefit: 20% off trading fees upon registration!!

Verification Method After Operation

The ADL indicator on the position panel of your futures trading page shows your current ADL rank. If the indicator stays lit, it means your combination of unrealized profit and leverage still ranks high enough to be targeted. The most reliable method is to take full profit or lower your leverage directly, instead of trying to game the system by only closing a small part of your position.