In the event of liquidation, when the position cannot be liquidated at a price that is better than the bankruptcy price and there is an insufficient insurance fund to cover the contract loss, Bybit’s ADL system will automatically deleverage an opposing position from a trader that is selected.
Keynotes for ADL process
- Traders with the highest ranking in the system are prioritized and selected to deleverage
- The auto deleveraging ranking is derived in order of highest profit and effective leverage use
- All traders may view their ADL priority on the 'ADL Ranking' tab
- The opposing order of selected trader will be deleveraged at the bankruptcy price of the liquidated order
- Maker rebate will be paid to the selected positions and Taker fee will be charged to the liquidated orders
- Traders who experienced ADL will receive an email/phone notification and have all of their active orders closed
- Traders are free to re-enter the market