adl

🚨 WAKE UP, TRADERS! 🚨
Did you just open your app and see your perps positions CLOSED overnight? 😱
You’re not alone — thousands just got hit by something called ⚡AUTO-DELEVERAGING (ADL)⚡

But what the hell is ADL? 🤔
Let’s break it down 👇

💡 WHAT IS ADL?
When markets go crazy and liquidations explode 💣 — the exchange steps in and automatically reduces positions from profitable traders to cover losses of others.

⚙️ WHY DOES IT HAPPEN?
When the market moves too fast 📉 and even the insurance fund can’t handle the chaos, ADL activates to keep the system balanced. ⚖️

🔥 In short: No one’s truly safe during a mega crash.
When volatility hits — ADL chooses for you. 💀

Stay smart. Stay ready. 🧠
#ADL #BinanceSquare #MarketCrash #Bitcoin #Perps

2025 Cryptocurrency Review
As of the end of December, the total amount is 116094
Cumulative earnings 16000+, ROI 16%
Monthly earnings 2400+, Monthly ROI 2%

The overall investment strategy remains to build stable compound interest, diversifying risks through a combination of multiple strategies. The core remains the funding fee, followed by arbitrage, alpha airdrops, contract trading, and wealth management, aiming to achieve relatively stable returns under the premise of hedging.

The earnings in December have significantly slowed down, not due to the failure of the strategy itself, but because of the extreme drop of $TAKE , which triggered ADL (Automatic Deductions) in the contract account, leading to forced liquidation of hedged short positions, while the account #ALPHA failed to sell TAKE at the same price, ultimately resulting in a passive loss of about 2000U in the Alpha account, directly compressing the monthly earnings.

Under the hedging system centered on funding fees, the directional risk itself is locked in, but ADL represents an asymmetrical mechanism risk at the exchange level. It may be necessary to regularly monitor the ADL indicator for each contract position in the future, with Binance providing a red-green light indicator for this.

Let me explain, the #ADL indicator represents the ranking of this cryptocurrency in the automatic deduction sequence. If all the indicator lights show 3 red lights, after a liquidation event occurs, the position of this cryptocurrency may be reduced. If the indicator lights only show green, it means it is ranked lower, with 1 green light being the safest.

Currently, through my research, it is possible to proactively liquidate positions with ADL red lights and reopen hedged positions to reduce ADL red lights, thereby lowering one's ranking in the automatic deduction sequence. Although this will increase some trading fee erosion.

The path of 100,000 USDT continues, a real record, not avoiding issues.
#资金费率套利

"I finally shorted the top and nailed the move…
and Binance said, ‘Congrats! You’re too profitable. Time to go home.’

#ADL

$1000CHEEMS
Originally, when the callback was a bit lower, I reduced leverage and increased my position, aiming to roll over to 0.0012, with a take profit at 0.001, but at midnight it automatically liquidated at 0.00145...? The exchange doesn't want to lose money, and ADL makes the winners cover the losses of the longs... this is too ridiculous, I can't even make a big profit.
#ADL

Recently learnt how to trade futures and been making some profits since then. I’m still not sure how #ADL and #FundingFees work though. Will eventually figure out, I guess. #BinanceFutures

⚠️ 🚨 your Future profit position can be hit by #ADL
it happened to me in #DEGO/USDT crash fews days ago
What is #ADL in #Binance Futures?
Auto-Deleveraging (ADL) is a risk management mechanism used in Binance Futures trading. It acts as the final step in the liquidation process for perpetual and quarterly futures contracts (USDⓈ-M and COIN-M). ADL only triggers in extreme market conditions when the platform's insurance fund cannot fully absorb a bankrupt trader's losses from liquidation. Instead of the exchange bearing the shortfall, it forces the closure of profitable positions from opposing traders (e.g., shorts if longs are liquidated) to balance the books.
How Does #ADL Work?
Trigger Condition: When a trader's position is liquidated but the insurance fund (a reserve pool funded by trading fees) is insufficient to cover the deficit, ADL activates. This is rare and typically occurs during high volatility with mass liquidations.
Priority Ranking: Profitable positions are selected for ADL based on a formula prioritizing: $DEGO

❓ Can anyone explain why I’m always in the red with $ADL?

I keep seeing losses no matter what I try. Is it the market structure, low liquidity, or am I missing a key strategy here? 🧐
$1000PEPE

Would love to hear your insights and tips from fellow traders. Let’s figure this out together! 💡

#ADL #CryptoTrading #Losses #TradingHelp #CryptoCommunity