Auto-Deleveraging, or ADL, is a safeguard built into the SorooshX Futures system to control risk under extreme market stress. It activates when the Insurance Fund for a given asset is exhausted and can no longer cover losses. The mechanism’s primary role is to limit cascading liquidations and ensure the protection of both user balances and platform liquidity.
ADL is triggered automatically under the following condition:
The insurance fund for that futures market drops to zero or a negative balance.
ADL deactivates when:
The insurance fund returns to a positive state, meaning it has recovered enough to cover potential liquidations.
During ADL, the system halts open-market liquidations. Instead of sending liquidation orders to the market (which can worsen volatility), the platform directly matches the liquidated position with the trader who ranks highest in the ADL queue.
The trade is executed at the bankruptcy price, with no trading fee.
The counterparty’s position is transferred to the platform, and any resulting profit is credited to their account.
Once ADL transactions are processed, clawback procedures are temporarily suspended to stabilize the market environment.
Who gets chosen first during ADL depends on each trader’s leverage-adjusted profitability. The system ranks traders according to their risk-adjusted ROI (Return on Investment), meaning more profitable and more leveraged positions are prioritized for deleveraging.
Profitable position:
ADL score = Position ROI × Account Maintenance Margin Rate
Losing position:
ADL score = Position ROI ÷ Account Maintenance Margin Rate
Profitable position:
ADL score = Position ROI × Account Maintenance Margin Rate
Losing position:
ADL score = Position ROI ÷ Account Maintenance Margin Rate
Profitable position:
ADL score = Position ROI × Position Maintenance Margin Rate
Losing position:
ADL score = Position ROI ÷ Position Maintenance Margin Rate
Position ROI = Unrealized PnL ÷ |Position Value (at average entry price)
Position Maintenance Margin Rate = Maintenance Margin ÷ (Position Margin + Unrealized PnL)
Simply put, the higher your leverage and unrealized profit, the higher your ADL ranking — and the greater your likelihood of being selected for deleveraging.
To maintain fairness and platform integrity, ADL trades use specific pricing rules depending on market conditions:
The mark price at the time of ADL is used.
When volatility spikes or the insurance fund faces severe losses, the insurance fund’s position price is used to ensure overall stability.
Determining Extreme Conditions:
| Maximum Leverage | 5-Min Volatility | 1-Hour Volatility | Condition | Execution Price |
| ≤ 15x | < 30% | < 70% | Normal | Mark price |
| 15x–50x | < 20% | < 60% | Normal | Mark price |
| 50x–125x | < 10% | < 50% | Normal | Mark price |
| Otherwise | — | — | Extreme | Insurance fund price |
Price Fluctuation = ((Highest Price − Lowest Price) ÷ Lowest Price) × 100%
Imagine a sudden market crash that drains the SorooshX Insurance Fund. ADL is triggered. Instead of dumping positions into the market, the system reallocates them internally.
| User | Direction | Unrealized PnL (USDT) | Position Value | Maintenance Margin Rate | ROI | ADL Score | Rank |
| A | Long | 500 | 10,000 | 10% | 5% | 0.005 | 1 |
| B | Long | 300 | 8,000 | 8% | 3.75% | 0.003 | 2 |
| C | Long | -100 | 6,000 | 6% | -1.67% | -0.27 | 3 |
| D | Long | -200 | 5,000 | 5% | -4% | -0.8 | 4 |
User A has the highest score, so their position is first in line for auto-deleveraging.
If 5,000 USDT worth of long positions need to be offset:
User A’s corresponding position is matched and closed at the liquidated user’s bankruptcy price.
Profits are credited to User A’s balance.
If the insurance fund remains under strain, the process continues with User B.
If you want to minimize your chances of being auto-deleveraged, follow these tactics:
Lower Your Leverage – The higher your leverage, the higher your ADL ranking.
Reduce position leverage (e.g., from 10× to 5×).
Scale down leverage on individual positions in isolated mode.
Take Profits Periodically – Realizing profits can reduce your unrealized PnL and improve your ranking.
Hedge Strategically – Use offsetting positions to balance profits during volatile periods. Avoid over-hedging to prevent performance loss.
Diversify and Resize Positions –
Spread exposure across multiple contracts.
Reduce total position size to lower risk-adjusted ROI.
Monitor the Insurance Fund –
Keep an eye on SorooshX’s insurance fund levels. A rapid decline is an early warning that ADL could soon be activated.
Set TP/SL Orders – Use take-profit and stop-loss tools to lock in returns and limit exposure during volatility spikes.
The Auto-Deleveraging (ADL) system at SorooshX is an essential safeguard that ensures orderly markets during extreme volatility. By understanding its triggers, ranking algorithm, and execution rules, traders can better anticipate ADL risk and manage their exposure more effectively.