Auto-Deleveraging

Auto-deleveraging (ADL) strictly ensures the platform's solvency. When a user's account value or isolated position value becomes negative, users on the opposite side are ranked based on their unrealized PnL and leverage. Backstop liquidated positions receive no special treatment in the ADL queue. These positions are closed at the previous mark price against the underwater user, preventing bad debt for the platform.

As a critical final safeguard for platform solvency, ADL maintains a strict invariant: under all circumstances, users with no open positions will not bear any platform losses.