1. Overview of Automatic Deleveraging System (ADL)
When an investor's position is forced to liquidate, if the liquidation position cannot be closed in the market and the market price reaches the bankruptcy price, the Automatic Deleveraging system will reduce the investor's position in the opposite direction. The order of Automatic Deleveraged positions will be determined according to the leverage and profit ratio.
The Automatic Deleveraged positions will be closed based on the bankruptcy price of the liquidation.
2. About the Trigger Situation
The strong flat process to mark the price of a strong flat position bankruptcy price.
The marked price changes, causing the position to go through without being liquidated successfully.
At the beginning of the automatic shorting, the system sorts the long and short sides according to the leveraged profit and loss level from high to low respectively and then reduces the position according to the sequence before and after.
3. About the Sorting System for Automatic Deleveraging
At any time, your position in the sequence is shown by an indicator.
This metric indicates your priority in the queue in 10% increments:
Arrange from left to right, the more bars are lit, the higher the possibility of Automatic Deleveraging.
In the above example, all “lights” are lit, which would mean your position is in the top percentile. In the case of a liquidation that is not able to be caught in the market, you may be deleveraged.
If you are Automatic Deleveraged, you will receive a notification, the unfilled order will be canceled, and you are free to choose to reopen the position.
Priority Ranking Calculation
Automatic Deleveraged priorities are calculated based on returns and leverage. Traders with high returns and high leverage will preferentially automatically reduce their positions.
The Sort Calculation
Automatic Deleveraging queue sorting algorithm:
Sort by position (floating profit/loss / actually used margin), of which the actual occupancy deposit:
Cross Margin: Initial Margin
Fixed Margin: Initial Margin + Additional Transferred Margin
The system splits these positions by longs and shorts and ranks the positions from highest to lowest.
First, calculate the leveraged profit and loss value of all customers, and then sort from largest to smallest.
Sort according to the level of leveraged profit and loss, and calculate the corresponding percentile (prompt the customer to sort the level of leveraged profit and loss).
In the above example, all "lights" are lit, which means your position is at the highest percentile. When a strong position cannot be liquidated in the market, you may be automatically shorted.
Lighten up from the number one client position.
For example a liquidated short position with 20 positions and a bankruptcy price of 650 USDT.
Positions A and B of the top two accounts with leveraged profit and loss levels of 10 and 20, respectively, will be automatically lightened at the bankruptcy price of 650 USDT. Among them, all 10 contracts in account A will be automatically lightened, and the remaining 10 strong contracts will be allocated to account B, so account B will have 10 remaining positions.
March 23, 2020