Why might part of a profitable position be automatically reduced by the system?
It’s worth understanding how the insurance fund and ADL work.
When a liquidation order is filled at a price worse than the bankruptcy price, the insurance fund covers the difference first. If the insurance fund is insufficient, profitable positions held by counterparties absorb the loss. This is ADL.
Before placing an order, check the liquidation price. If it’s too close to the current price, reduce your position size.
Check the market: $BTC is at 82217.99 (24h +1.32%).
It’s worth understanding how the insurance fund and ADL work.
When a liquidation order is filled at a price worse than the bankruptcy price, the insurance fund covers the difference first. If the insurance fund is insufficient, profitable positions held by counterparties absorb the loss. This is ADL.
Before placing an order, check the liquidation price. If it’s too close to the current price, reduce your position size.
Check the market: $BTC is at 82217.99 (24h +1.32%).