Auto-deleveraging (ADL) is the final step in the forced liquidation process. It is only triggered when the Futures insurance fund cannot cover the positions of bankrupt contracts.

OSL takes all possible measures to avoid ADL, including features like "Post-Only" limit orders and "Immediate or Cancel" orders, to minimize the impact when ADL occurs. However, due to the high volatility of crypto markets and the availability of high leverage, ADL cannot be completely avoided. However, to provide the best user experience possible, OSL strives to minimize ADL liquidations to the extent possible.

Profitable positions are subject to ADL according to a priority ranking. Each contract position interface includes an ADL risk indicator. If a position is at risk of being deleveraged, the indicator will be clearly displayed on the interface.

Positions in the ADL queue are ranked based on profit and leverage. Positions with higher profits and higher leverage are prioritized for ADL, followed by positions with lower profits and lower leverage.

When a profitable position is deleveraged via ADL, affected traders are notified immediately with the forced deleverage amount and price. No trading fees are charged for positions affected by ADL.

The liquidation price is the price at which a losing position begins to be liquidated. This may be affected by leverage, maintenance margin ratio, token price, and the remaining balance of the losing trader.

The bankruptcy price is the price at which a forced liquidation order closes a position so that the trader’s losses equal their margin or initial collateral, resulting in a zero balance.

Please note that the bankruptcy price may fall outside the market price range. Traders are strongly advised to monitor ADL indicators to reduce the risk of being deleveraged.

Calculation for liquidation priority ranking

1. PnL% = Unrealized PnL ÷ |Notional Position|

2. Effective Leverage = |Notional Position| ÷ (Wallet Balance + Unrealized PnL)

Ranking is determined as follows:

• If PnL% ≥ 0, the ranking is based on: Leverage-adjusted ROI = PnL% × Effective Leverage

• If PnL% < 0, the ranking is based on: Leverage-adjusted ROI = PnL% ÷ Effective Leverage

• Leverage PnL% = User rank ÷ Total users

If you experience any issues or require further assistance, please contact the OSL Global Support Team through the app, platform, or by emailing [email protected]